U.S. Tax Attorney
Viacheslav Kutuzov, Esq.
NEW YORK TAX MALPRACTICE ATTORNEY
LEGAL REPRESENTATION WHEN TAX PREPARATION OR ADVICE GOES WRONG
Errors in tax preparation or advice can affect much more than the amount shown on a return. An omitted deduction, an incorrect filing position, a missed election, or a failure to submit required documents may lead to additional tax, penalties, correction expenses, or the loss of a valuable tax benefit. Yet an unexpected tax bill does not necessarily establish negligence, and an error does not automatically justify litigation. The first task is to determine what should have occurred, whether the problem can still be corrected, and what financial loss was actually caused by the professional’s conduct.
Kutuzov & Associates, P.C. represents individuals and businesses evaluating claims arising from tax services, as well as tax professionals responding to allegations concerning their work. Our approach brings the underlying tax analysis together with the legal requirements of a professional-liability claim. We examine the engagement, reconstruct the relevant tax treatment, identify available remedies, and assess whether correction, negotiation, arbitration, or litigation offers a proportionate way forward. Representation of taxpayers and professionals takes place in separate matters and is subject to a conflict check.
ASSESSING TAX ERRORS AND POTENTIAL CLAIMS
UNDERSTANDING WHAT WENT WRONG
A meaningful assessment begins with the particular service the professional agreed to provide. Preparing an individual return, advising on a business sale, selecting a tax election, and representing a taxpayer during an examination involve different responsibilities. We review the engagement terms alongside the returns, supporting documents, communications, and relevant deadlines. This helps establish whether the problem arose from an incorrect application of tax law, an overlooked document, a failure to carry out agreed instructions, or circumstances outside the professional’s responsibility.
The chronology is equally important. A matter may involve an error in the original return, additional advice after the client questioned the result, and a subsequent failure to address a correction request. Those events should be examined separately because they may involve different duties, consequences, and deadlines. A written objection can show that the professional was alerted to a concern, but establishing a claim also requires analysis of whether the response was deficient and whether the client suffered a resulting loss.
Our review may address unfiled or incorrectly prepared returns, missed deductions or credits, inaccurate basis calculations, residency and filing-status errors, mishandled elections, and failures involving business, payroll, or information returns. More complex matters may concern transaction planning, international reporting, or the tax consequences of a corporate structure. Where necessary, we work with an independent accountant or another appropriately qualified expert to establish the correct treatment and evaluate the professional’s work.
DETERMINING WHETHER A CLAIM IS VIABLE
A professional-liability claim requires more than identifying a mistake. The analysis must connect the professional’s duty and departure from the applicable standard to an actual financial loss. We therefore consider what would have happened if the services had been performed properly, whether the client supplied the necessary information, and whether a correction or other remedy remains available. This assessment also identifies weaknesses in the claim before the client incurs the expense of pursuing it.
The proper legal theory depends on the provider, the services, and the agreement. Not every person who prepares a return has the same professional status, and not every dispute is governed by identical malpractice rules. Contractual promises, service guarantees, and professional-negligence principles may require separate consideration. The New York Court of Appeals’ decision in Chase Scientific Research v. NIA Group, 96 N.Y.2d 20 (2001), explains why identifying the relevant professional status matters when applying the malpractice limitations framework.
CORRECTING ERRORS AND PURSUING RECOVERY
ADDRESSING THE UNDERLYING TAX PROBLEM
For taxpayers, protecting the tax position is often the most immediate priority. Depending on the issue, the available work may include amended returns, refund claims, responses to government notices, requests for penalty relief, or analysis of other corrective procedures. Some mistakes can be corrected without a substantial remaining loss; others involve an expired refund opportunity, an unavailable election, or a transaction whose consequences cannot readily be reversed. We identify the available route and define the legal and tax work needed to pursue it.
Correction and a claim against the preparer may need to proceed at the same time. Waiting for the professional to accept responsibility can be costly if a government response or refund deadline is approaching. We examine what action is required to preserve the taxpayer’s position while retaining the documents and calculations needed to establish any remaining claim. Where another professional prepares the corrected filings, we can coordinate the legal assessment with that work so that the explanation of the error and its consequences remains consistent.
IDENTIFYING RECOVERABLE LOSSES
The amount of an assessment or tax bill is not necessarily the value of a malpractice claim. Tax that was properly owed must be distinguished from additional liability caused by deficient services. Likewise, an overpayment that can still be refunded must be separated from a permanently lost refund or tax benefit. Depending on the facts and applicable law, a claim may involve reasonable correction expenses, particular penalties, avoidable tax costs, or other demonstrable financial consequences. Amounts already refunded, reimbursed, or credited must be taken into account.
Interest requires particular care. In Alpert v. Shea Gould Climenko & Casey, 160 A.D.2d 67 (1st Dep’t 1990), the court rejected recovery of tax already owed and interest reflecting the taxpayers’ retained use of that money in a disallowed tax-shelter matter. The decision illustrates why each claimed loss must be examined in its factual context. We assess causation and recoverability individually rather than assuming that every tax, penalty, or interest charge can be shifted to the professional.
SELECTING A PROPORTIONATE RESOLUTION
Once the underlying error and remaining loss are understood, we evaluate the available recovery mechanisms. These may include a claim under the preparer’s service guarantee, a demand for reimbursement, settlement negotiations, mediation, arbitration, or court proceedings. Engagement agreements can affect the available forum and may contain notice requirements, dispute-resolution procedures, or limitations that need to be addressed before a claim is commenced.
The appropriate strategy depends on the strength of the evidence, the amount realistically recoverable, and the cost of obtaining that recovery. A focused contractual claim or negotiated resolution may be appropriate for a relatively contained loss. A substantial or technically disputed claim may require independent expert analysis and formal proceedings. Our role is to explain those choices and develop a defined course of work that reflects the client’s objectives and the economics of the matter.
REPRESENTATION FOR TAX PROFESSIONALS
RESPONDING TO CLAIMS AND PROTECTING THE DEFENSE
For accountants, enrolled agents, tax attorneys, and other preparers, a client complaint may raise questions about the scope of the engagement, the accuracy of the work, and the cause of the alleged loss. We review the file, preserve relevant records, assess the allegations, and advise on the response. Where professional-liability insurance may apply, we examine notification requirements and coordinate with the insurer or appointed counsel as appropriate to the engagement and policy.
An effective defense requires a clear account of what the professional was retained to do, what information was available, and why the challenged treatment was adopted. We examine whether the alleged duty existed, whether the work met the applicable standard, and whether the claimed loss would have occurred regardless of the professional’s conduct. We also evaluate limitations defenses, contractual provisions, duplicative claims, and the need for expert evidence. The strategy may involve early resolution, a dispositive motion, arbitration, or preparation for trial.
ADDRESSING RELATED REGULATORY ISSUES
Some disputes also raise disciplinary or regulatory questions, particularly where the allegations concern dishonesty, repeated failures, missing records, or representations that required filings were completed when they were not. The applicable system depends on the practitioner’s status and conduct. New York licensed accountants, attorneys, and practitioners subject to the IRS Office of Professional Responsibility operate within distinct regulatory frameworks; a civil allegation does not itself establish a disciplinary violation.
Where a regulatory inquiry exists or requires attention, we consider it alongside the civil matter. Responses to clients, insurers, government agencies, and disciplinary authorities should be accurate and consistent, while respecting the obligations that apply in each setting. We help identify those obligations and coordinate the work needed to address them, including the effect that factual admissions or settlement terms may have beyond the immediate dispute.
HOW THE WORK PROCEEDS
INITIAL INQUIRY AND CONFLICT CHECK
Begin with a brief description of the problem, the names of the parties and professionals involved, the relevant tax years, the approximate financial loss or amount claimed, and any approaching deadline. Indicate whether you are seeking assistance with a potential claim or defending against an allegation concerning your work.
DO NOT SEND CLASSIFIED INFORMATION OR SENSITIVE OR CONFIDENTIAL DOCUMENTS BY EMAIL OR THROUGH THE WEBSITE CONTACT FORM. THIS INCLUDES TAX RETURNS, BANK STATEMENTS, IDENTIFICATION DOCUMENTS, TAXPAYER IDENTIFICATION NUMBERS, AND ACCOUNT DETAILS. NEVER PROVIDE PASSWORDS OR AUTHENTICATION CODES. After the conflict check, we will identify the records needed and provide appropriate methods for securely exchanging sensitive documents. Classified information must not be submitted through ordinary email or standard document-upload services; any proposed exchange requires separate arrangements through an authorized channel. We request the materials needed for the preliminary review first. A complete file may be requested if further work is agreed.
PRELIMINARY ASSESSMENT — $100
Following the conflict check, a fixed $100 fee is required for a preliminary review of the information and records we request. The fee covers the time devoted to considering your submission and determining whether we can offer further assistance. This is the first step in our intake process for both taxpayers and tax professionals.
THE PRELIMINARY REVIEW IS NOT A LEGAL CONSULTATION OR A SUBSTANTIVE OPINION ON THE MERITS OF A CLAIM OR DEFENSE. IT DOES NOT INCLUDE TAX CALCULATIONS, A DETERMINATION OF RECOVERABLE DAMAGES, LEGAL RESEARCH, OR AN ACTION PLAN. PAYMENT DOES NOT GUARANTEE ACCEPTANCE OF THE MATTER OR A FAVORABLE ASSESSMENT. The applicable terms are explained on our Initial Inquiry page.
SCOPE AND FEES FOR FURTHER WORK
If we can offer further assistance, we propose a separate scope of work and fee. Depending on the circumstances, that engagement may cover analysis of the alleged error, corrective tax work, evaluation of potential claims or defenses, settlement negotiations, or representation in arbitration or court proceedings. Expert analysis and other professional services may also be necessary.
The $100 assessment fee does not cover these services. Further work proceeds only under a separate written engagement agreement. In deciding whether to offer representation, we consider the nature of the dispute, the available records, the financial stakes, and whether the likely cost of the work is proportionate to the matter.
DEADLINES AND RESPONSIBILITY FOR ACTION
A claim against a tax professional, a tax refund request, and a response to a government notice may have different deadlines. Sending an inquiry, submitting documents, or paying the assessment fee does not engage us to calculate or monitor those deadlines, correct returns, contact another party, or commence proceedings.
Responsibility for those actions must be expressly included in a separate written engagement agreement. If a deadline is approaching, do not delay seeking counsel who can act within the required time while awaiting our preliminary review.
REQUEST A PRELIMINARY ASSESSMENT
Contact Kutuzov & Associates, P.C. with a short summary of your situation. After the conflict check, we will provide instructions for the $100 payment and submission of the requested records.
Viacheslav Kutuzov
New York Attorney & Counselor-at-Law (6192033)
admitted to practice before the IRS (No.00144810-EA)
55 Broadway, Floor 3, New York, New York 10006
Phone: +1 646 8374669
