Can You File a Complaint Against a CPA?

Individuals can report alleged misconduct or negligence by Certified Public Accountants (CPAs). Formal processes exist to uphold the integrity of the accounting profession and protect the public. Understanding this process helps address grievances and ensure accountability.

Regulatory Bodies and Their Scope

The primary regulatory bodies for Certified Public Accountants are the State Boards of Accountancy. Each state licenses CPAs, and its board investigates complaints and enforces professional standards within its jurisdiction.

State Boards of Accountancy investigate professional misconduct. Common issues include negligence in performing services, such as preparing financial statements or tax returns, and fraud or dishonesty. Violations of professional standards, like Generally Accepted Accounting Principles (GAAP) or Generally Accepted Auditing Standards (GAAS), also fall under their purview. Misapplication of these standards can lead to financial misstatements.

State boards also address lack of independence and the unauthorized practice of accounting. Other concerns include failure to return client records or engaging in acts discreditable to the profession. While fee disputes are generally outside a board’s jurisdiction, issues related to a CPA’s professional duties and ethical conduct are investigated.

Other entities, such as the American Institute of Certified Public Accountants (AICPA), have ethics enforcement programs for their members. The Internal Revenue Service (IRS) handles complaints related to tax preparer misconduct concerning federal tax returns. While these organizations play a role, the State Board of Accountancy remains the primary avenue for public complaints concerning a CPA’s license and practice.

Preparing Your Complaint

Before initiating a formal complaint, gather specific information and documentation. A well-prepared complaint provides regulators with details for an effective investigation.

Your complaint should include the CPA’s full name, firm name, and license number. Record specific dates of the engagement or when incidents occurred. Provide a clear description of the alleged misconduct, detailing what happened, when, where, and how it impacted you.

Supporting evidence is essential to substantiate your claims. This can include contracts, engagement letters, and correspondence exchanged with the CPA. Relevant financial documents like financial statements, tax returns, or audit reports prepared by the CPA, and bank statements, serve as evidence. For tax-related issues, copies of your tax return and any related IRS notices are important.

Organize your materials logically, perhaps by creating a chronological timeline of events. This helps ensure factual accuracy and provides a clear narrative for the reviewing body.

Filing Your Complaint

Once information and documents are gathered, submit the complaint to the appropriate regulatory body. Access the State Board of Accountancy’s official website, which provides dedicated sections for consumer complaints. Most boards offer an online portal for submission.

Using an online system, you will be guided through fields requiring the CPA’s details and a description of the misconduct. The portal allows uploading supporting documents directly. This digital submission method streamlines the initial intake process.

Alternatively, boards provide specific complaint forms that can be downloaded, printed, and completed manually. These forms prompt you for information and evidence. Once completed, the form and all supporting documentation can be mailed to the board’s designated address, found on their website. Some boards may also accept submissions via email or fax.

For tax-specific complaints against a preparer, the IRS provides Form 14157, “Complaint: Tax Return Preparer,” and Form 14157-A, “Tax Return Preparer Fraud or Misconduct Affidavit,” if fraud or unauthorized filing is suspected. These forms require detailed information about the preparer and the alleged misconduct, along with supporting documents, and can be submitted online, by mail, or fax. Ensuring all prepared materials are attached or uploaded is important for a complete submission.

The Complaint Review Process

After a complaint is filed, the regulatory body initiates its review. The initial step determines if the complaint falls within the board’s jurisdiction and has sufficient information for an investigation. Complaints outside their authority, such as simple fee disputes not tied to professional misconduct, are dismissed.

If the complaint is legally sufficient, an investigation will commence. This involves the board contacting the CPA, providing allegations, and requesting a formal response. The board may gather additional evidence, interview relevant parties, and examine records. This investigative phase aims to uncover facts and determine if a violation of professional standards or regulations occurred.

Outcomes vary based on findings. If no violation is found, the complaint may be dismissed. If a violation is substantiated, disciplinary actions can range from an informal warning or formal reprimand to more severe penalties. These may include monetary fines, mandatory ethics training, or supervised practice. For serious infractions, a CPA’s license could be suspended or permanently revoked.

Complaint investigations are confidential until a formal disciplinary action is taken. The timeline for review and investigation can vary depending on the complexity of the case and the board’s caseload. Complainants are notified of the outcome once a decision has been reached.