Question on taxes and lawyer conduct

[Travelwanted]

2 years ago I purchased film credits to offset some of my state tax liability. I have done this multiple times with no issues previously. The credits were purchased through a reputable attorney at a large national firm.

In August I received a letter from the state tax authority stating I owed back taxes plus interest and penalties. I contacted the state DOR to find out the issue. 1 of the 2 lots of credits purchased were not documented properly. So, I reached out to the attorney on Sept 13 via email about the issue. He assured me he would look into it but likely was an error by the DOR. Given the large amount (50+k) I continued to call the DOR to see where the problem was as the attorney assured me they had the documents needed to process the credits.

Finally DOR said there was an issue with the return from the production company but could not discuss with me. Therefore, I contact the production company on Oct 13 who admitted they failed to file a return. Fortunately, they were honest and were already working on the return (which has since been done).

The attorney never notified me of this. In fact, the day before I found out he told my accountant that the state had all it needed, which was not true. In fact, it appears the attorney knew they did not file the return when he told her this info. Since, the attorney has gone radio silent. Not returning emails.

The production company is cooperating fully so far but my contract is with the attorney, not them. And thus far I have not hired an attorney because I am not certain there is any damage yet - ie not sure if I will be charged the interest and penalties or not. The only realized damage is that the state is holding my 2016 tax refund of about 7000 because of this.

My understanding is the state will take about 2 more months to process the recently filed tax return. Not sure I will know anything more until then.

So, two questions:
1- once DOR processes the return and hopefully verifies the credits as valid, will the interest and penalties be waived?

2-should I consider filing a complaint with the state bar? I am not vindictive but feel the behavior of the attorney is at minimum unprofessional, if not unethical.


Thanks for any input.

TW

 

[ExFlyBoy5]

2-should I consider filing a complaint with the state bar? I am not vindictive but feel the behavior of the attorney is at minimum unprofessional, if not unethical.


Thanks for any input.

TW

For this, I would vote yes. At a minimum, the attorney should be returning your emails and phone calls...the radio silence is enough to get him/her hemmed up by the bar association. I would list your complaints that you would allege to the bar and send them to the attorney and see what happens.

If you Google your state's "attorney professional responsibility rules" this may help you in wording your complaint.

Disclaimer: I am NOT an attorney and this is NOT to be construed as legal advice.

 

[Texas Proud]

Just an opinion from someone who has done taxes in the past...

If the amount of taxes they want changes, the penalty and interest will also change... so if the amount due is zero the penalty and interest will be zero....


I would contact the bar... but I will throw something else out there.... what are you going to complain about? I do not think that he was acting as a lawyer when he sold you the credits (I do not know the requirements are for the sale, so I could be completely off).... IOW, if he sold you are car that had problems and he went radio silent would you contact the bar? I think it all depends on if he had to be a lawyer to sell the credits... ie, he was acting as a lawyer for you..

 

[Taxman59]

what are you going to complain about? I do not think that he was acting as a lawyer when he sold you the credits (I do not know the requirements are for the sale, so I could be completely off).... IOW, if he sold you are car that had problems and he went radio silent would you contact the bar?

I am not sure what the rules in all states, but most states have some provision regarding acts discrediting the profession, so if a person knows you are an attorney, they can rely on your integrity as an attorney in all of your conduct. That being said, the state Bar Assn in my state is known for slapping wrists (in private) as punishment for anything that doesn't make the front page of the papers.