Smaha v. Moore

Beasley, Judge.

Appellants sued their accountant and his professional corporation for alleged negligence in the preparation of their 1982 and 1983 federal and state income tax returns, contending that understated income resulted in substantial additional taxes, interest, and penalties when the IRS audited several years later. The primary issue was whether the accountant was obligated, by the contract of employment or professional standards, to verify by bank deposit statements the total income figures provided by the client. A second issue was whether the accountant was responsible for…