Bringing civil action against financial professionals

Business owners depend on various financial professionals almost every day. When this faith is misplaced, the results have the potential to be catastrophic. Luckily, business owners who want to recover some damages may have an avenue to do so under Massachusetts law.

It does not necessarily matter what type of advisor committed a negligent act. It could be either a tax preparer or a CPA, for example. The law requires nearly every person who works with a business’s finances to follow a certain code of ethics, and most professionals also have legal contracts with businesses.

The most important step is typically determining who could potentially be accountable for an error or oversight. After determining this, the affected party could continue with the process, trying to understand the exact nature of the problem.

According to FindLaw, there are several situations in which accounting malpractice might form the grounds of a civil suit. These could be reduced to a few general categories:

  • Deceitful actions
  • Breaches of contract
  • Deviation from standards and principles

Apart from civil litigation, there are other potential resolution options. For example, the IRS accepts formal complaints against tax preparers; these are available on the official website. However, one should note that submitting these types of forms could affect the outcome of trials or settlement negotiations.

Financial woes often come along with various other issues, especially for small business owners. It is even more frustrating when these problems arise from the negligent, deceitful or incompetent actions of a trusted advisor. Finding the people responsible for accounting errors or tax preparation oversights and retrieving damages could potentially secure the future of a healthy company. 

Archives

FindLaw Network