Our accountant claimed a credit we did not qualify for. Now we owe the

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DonandKathy

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credit plus interest and penalties.? Our accountant told us we qualified for the 2008 home buyers credit even though we purchased the home in Jan. 2007. He suggested that since we qualified for it we should take it. We followed his advice, and as of 2010 we received notice that we did not qualify, and now we owe the credit plus the interest and penalties. We do not currently have the lump sum needed to re-pay the credit, and therefore will probably incur more penalties and interest. What legal responsibility does my accountant have in regards to repayment of the credit, interest and penalties?
 
Legally, the accountant has no liability here at all. You are responsible and liable for the content and accuracy of your own return.

Most accountants will offer an accuracy guarantee whereby they pay interest and penalties if the problem was their mistake. You will still be liable for repaying the credit itself, but they would pay you for the penalties and interest up to the point where you were notified by the IRS. That only applies IF the accountant offers this guarantee and you can show on paper that it was their mistake
 
He needs to help you fix this - get a payment plan set up or something. He should be responsible for all of it, at least in my eyes. I'd talk to your attorney if you have one and find out exactly what your rights are.

We bought our house in 2008 and ours tried to get us to take that. We actually did, but thankfully we had problems and never got the check. We didn't know the money had to be paid back - thought it was like 2009 and 2010, where you just get to keep it. Luckily, we canceled our request for that credit in time.

If your accountant isn't fixing this, I'd talk to an attorney. We pay them the amount we do because they are supposed to know what they are doing. :(
 
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