Don’t Trust Your Accountant

Why It Matters

Business owners who assume their accountant bears all risk face costly penalties and prolonged audits; understanding the reliance test protects their bottom line.

Key Takeaways

• IRS holds taxpayer accountable, not just the accountant
• Reliance defense requires qualified advisor, accurate info, good‑faith reliance
• Basic filing deadlines are non‑delegable duties you cannot outsource
• Review returns before signing to catch errors or fraud
• Proper advisor selection can mitigate penalties, but not tax liability

Summary

The video debunks the common belief that hiring an accountant shields a taxpayer from IRS liability. Jasmine Dilucci, a tax attorney and CPA, explains that the IRS audits the return signer, not the preparer, and that blaming the accountant offers no legal protection.

She outlines the legal framework: basic filing deadlines are non‑delegable duties, while substantive tax advice may qualify for a reliance defense. The Tax Court’s three‑part test—competent advisor, accurate information, and good‑faith reliance—must be satisfied for penalties to be waived.

Dilucci cites United States v. Boyle, where a court rejected reliance on an attorney for missed deadlines, and Neonatology Associates v. Commissioner, which set the reliance criteria. She also references the Murens case, where an accountant’s fraud led to decades‑long audits and massive penalties.

The takeaway for businesses is clear: select a licensed, experienced professional, provide complete data, and review the return before signing. Proper reliance can reduce penalties, but the taxpayer remains responsible for the tax itself.

Original Description

Business Owners: Legally lower your tax bill and protect yourself from IRS scrutiny: https://jasminedilucci.com/discovery-call

Join my free tax strategy community here (Monthly Q&As, Legal Tax Strategies, Audit Reviews): https://actualtaxlaw.com/

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

ABOUT JASMINE DILUCCI, JD, CPA, EA

Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.

Now as a tax attorney and CPA, she works with individuals and business owners across the nation to on Tax Planning, CFO Advisory, and IRS Tax Resolution

How Jasmine Got Here…

18: Became an Enrolled Agent, licensed to represent taxpayers before the IRS.

22: Earned an Accounting Degree and a Master’s in Finance.

23: Became a CPA

24: Stepped into leadership as she took over her own CPA firm

26-28: Juggled full-time studies at SMU Law while she was growing her CPA firm.

28: Graduated from law school 4th in her class and became an Attorney, all while managing her CPA firm.

29-31: Expanded her CPA firm to seven figures, with a focus on delivering top-notch service and exceptional value to every client.

32: Launched Tax Leverage to offer free online education and combat the rise of “tax gurus,” aiming to provide real, accessible tax knowledge.

Today: She’s dedicated to running her firm and leveraging her expertise to educate and empower others, helping individuals and businesses navigate the complexities of taxes and finance.

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.

# # #jasminedilucci