Former financial consultant entered the wrong tax code on form 1099R and didn't fix it for 3 years, can we sue them for amount owed?
Question Details:I transferred an IRA rollover with equal distribution. The correct tax code was 2 and they wrongly changed it to a 1. It took 3 years for him to change it and we are now getting bills for past due taxes as a result. All they need to do is submit a letter stating they entered the wrong tax code in error but all I get is the run around. Can he sue for all taxes owed plus legal fees?
You may have a case against them for malpractice, in which case, you could sue for all your costs they caused you to incur. That would not include taxes you should have paid anyway, but could include interest or penalties on it, plus any professional (e.g. lawyer) expenses you've incurred to clean up the mess. You may wish to consult with a local attorney, with whom you can share all the information in detail and confidence, so you can get a more definitive answer, but it sounds like it is worthwhile at least looking into a lawsuit.
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