What Is Accounting Malpractice?
Accounting malpractice claims involve damages you incur due to the actions of your accountant. Often, the losses involve heavy tax penalties but may also be instances of criminal activity. These mistakes and actions can seriously impact you and leave you in a difficult place.
When you have struggled with a suspected incidence of accounting malpractice, Miller Injury Firm is here to help. We are tenacious malpractice attorneys working hard for people across Murfreesboro. Our experience handling issues in Tennessee courtrooms makes us an ideal firm to turn to for answers and representation.
Common Examples Of Accounting Malpractice
While malpractice can take many forms in a practical sense, there are two significant types of malpractice:
- Simple negligence: This includes mistakes in calculations or deviations from standard practices that lead to losses.
- Gross negligence: This includes intentional actions such as purposeful miscalculations, embezzlement and fraud.
Both types are compensable under Tennessee law, but there are some differences in how much you may recover.
What Is The Statute Of Limitations For Accounting Malpractice In Tennessee?
For all instances of accounting malpractice, you have five years to file your claim, according to Tennessee’s statute of limitations. However, if there was fraud concealing the action in the first place, you have one year from the discovery of the fraud to file a suit.
The law allows you significant time to realize you were the victim of an accounting mistake or malicious malpractice. However, that time can move extremely quickly. Often, malpractice mistakes can go many years before discovery because of how dense and complex accounting practices are.
When Can You Sue For Accounting Malpractice?
Filing a lawsuit for accounting malpractice means you must meet Tennessee’s test for a malpractice claim. This test has four points:
- You had a professional relationship with the accountant.
- They did not fulfill their obligations.
- That lapse caused financial harm.
- If that lapse had not occurred, you would not have suffered that harm.