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ghosted by accountant

Q&A: When to report an unresponsive accountant

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Dear Liz: In a previous column, you answered a question from someone dealing with an unexpected bank levy by a state tax agency. The accountant who prepared the tax returns wasn’t responding to emails or calls. If an accountant ignores a client, then a complaint should be filed with the state’s board of accounting. If the accountant is licensed, the state board will likely follow up.

Answer: That’s a good suggestion. As mentioned in the previous column, many tax pros struggle to keep up with client communications during the busy tax season and may back-burner questions they don’t see as urgent. But if the ignored client still hasn’t heard back from their tax pro at this point, making a complaint to the board of accounting could be a reasonable response.

Q&A: What should you do if an accountant ignores you?

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Dear Liz: When my sister became somewhat disabled, I started handling her financial affairs. (I have a power of attorney.) She hadn’t paid her taxes for several years, so I worked with her accountant to get them filed and pay the necessary penalties. I thought she was up to date with both her federal and state taxes. With no warning (to my knowledge), the state tax agency suddenly withdrew over $12,000 from her checking account.

After an attempt to contact the agency for an explanation, I decided to ask her accountant if he could help me understand where she stood tax-wise so we would not be hit with any similar financial shock. He had prepared her taxes for her for many years, but has not returned my calls or emails. I am at a loss as to how to obtain more information about her tax liabilities. I believe she had given him the authority to view her tax accounts. What else can I do to feel satisfied that she will not be subject to any further garnishment?

Answer: Many tax pros struggle to keep up with client communications in the weeks before the April 15 deadline. If you were trying to contact him during crunch time, that could explain why you didn’t hear back immediately. If he still hasn’t reached out, however, you should start looking for a new accountant who can help you sort this out.

State tax agencies don’t usually act without warning. Typically, they mail multiple notices about delinquent taxes and give taxpayers time to respond before taking money from a bank account. It’s possible these notices went to an old address, or that your sister received them but didn’t understand their importance.

Since you have the power of attorney, you should be able to get information directly from the state tax agency. They’ll have a form that allows you to establish your right to communicate with the agency on your sister’s behalf. Once filed, you can access her account history. That information can help you and the new accountant piece together what happened, determine if there are any outstanding liabilities and figure out a plan for preventing future collection actions.

You’ll also probably want to pull her credit reports to look for any other tax liens or collection actions. If she’s struggling to manage her money, you may need to take more proactive steps, such as taking over bill payment. Consider working with a fiduciary financial planner or an elder law attorney who can help you create a system to avoid future catastrophes.