Accountants

The sensitive nature of the work performed by accounting professionals often leaves them exposed to the threat of malpractice claims, particularly in a difficult economic climate. The MMP&S team is technically proficient and highly experienced at handling claims against accounting professionals in any venue where a defense is needed, whether in State Court, Federal Court, Surrogate’s Court or Bankruptcy Court.

The rise of lawsuits and corporate investigations has been accompanied by a concomitant increase in the number of situations where accountants are served with non-party and investigative subpoenas seeking the production of client tax records and/or demanding testimony from the accounting professional. These matters can range from a generic demand for a client’s tax records by parties to a State Court matrimonial dispute to demands for Grand Jury testimony in federal investigations by the United States Attorney’s Office, Internal Revenue Service, or the United States Department of Labor to criminal investigations by local law enforcement.

Bringing our expertise to bear in these diverse situations, we provide assistance and sound guidance to the accounting professional by: identifying potential restrictions on the disclosure of sensitive client tax information; interfacing with the various attorneys and investigative agencies seeking information from the accountant; and personally accompanying our accountant clients to investigative meetings, depositions and Grand Jury appearances to zealously represent and protect the accounting professional’s interests. Our involvement in these subpoena-related matters not only assists the accounting professional in properly addressing the information demands at hand, but it also affords our attorneys the valuable opportunity to promptly identify potential issues that may impact the accounting professional beyond the subpoena response and potentially protect the accountant from direct claims by the parties.

Our accountants’ liability attorneys have successfully represented accountants and accounting firms in claims involving:

• The failure to detect internal fraud and theft
• R.C. Section 7216 requirements and responsibilities when complying with subpoenas
• Inaccurate presentation of financial information
• Errors in tax preparation resulting in additional taxes, interest and penalties to the tax client
• Failure to comply with GAAP or other general standards of care pursuant to GAAS, SAS and other AICPA audit guidelines
• The personal responsibility of accountants for inaccurate audits
• The failure to accurately assess scope of attestation services
• The failure to accurately and properly engage or disengage in writing
• The failure to properly detect, analyze and interpret potential conflicts of interest
• Complaints before the New York State Office of Professional Discipline and Licensing Department, AICPA, and state accounting boards
• Failure to file FBARs and streamlined filing compliance procedures
• Defending claims of deepening insolvency
• Defending errors made in connection with pandemic loans
• Defending ethics complaints/violations before the New York State Society of CPAs, AICPA, and Office of Professional Discipline
• Defending against errors or omissions with respect to certain tax preparation engagements
• Defending against errors or omissions with to special elections or credits for certain income tax filings
• Disputes involving preparation of financial statements
• Defending against claims for breach of fiduciary duty and aiding and abetting a breach of fiduciary duty
• Defending against claims of conflict of interest