It's very easy these days to set up an LLC or Corporation or trust or estate, if you forget to tell your tax preparer you could run into this problem.
I got another case recently where the taxpayer registered as a partnership and failed to tell the preparer.
Here's a guy who set up an LLC between him and his wife and forgot to mention it to his tax preparer.
The taxpayer reasoned that since there was no activity, why should he file a return? CPA 's are expensive - right ?
BUT the IRS remembered the registration, and waited about two years before sending a notice sent a notice asking for a copy of the return.
So the taxpayer filed the return with all zeros - two years late !!!!!
So how much did it cost to fix this? $1,500
How much would have cost for the CPA to register and file? With zeroes? And Timely maybe $200
Certified Public Accountant
Certified Fraud Examiner
Enrolled Agent
29 Pearl St NW, Ste 225
Grand Rapids, MI 49503
616 970 3000
dougzandstra.com
email dougzandstra@gmail.com
