I was storing some product at a fulfillment company in California in 2011 & 2012. I live in Florida where I do business from my home. I have been doing my taxes with a CPA so it would get done right, as I feared making a mistake if I did it myself. The CPA came to me in 2013 and stated after doing some research she found that I needed to file my 2011 & 2012 franchise tax with the state of California. I said okay and signed the tax return. (I was not aware of franchise tax and she was not either) I had a sellers permit and only sold a few items to individuals,which I paid taxes for.
On 5/16/2014 I get a letter from the franchise tax board of California that they found a mistake on the return for 2011, 2012 that she prepared and now I owe due $3,200 for interest, penalties and fees.
If I knew I was supposed to pay a franchise tax, I would have paid it. She has been doing my taxes now for 6 years and she has stated that she is not responsible for this.
- What is the right way to handle this?
- Am I wrong for expecting the CPA should have properly filled out and filed my taxes?
- How can I find out if the CPA has missed anything else?