Filed Taxes are Incorrect
Long story short, the numbers are off, and it was the accountant that entered them. Our year end is wrong and even the description of what the business is for is wrong. For a sole proprietorship.
He already filed the return, and when we went over it, those were the discoveries.
I have read this website through and through, otherwise I would never have noticed all the mistakes that were made. We went to an accountant because we were afraid of making a mistake, since its the first year of business.
Also, I had asked him about "invoicing the employer" for expenses incurred (if you read the article you know what I'm talking about). He said it doesn't apply to him, even though he wasn't ready to "loan" the company money. We were sort of relying on getting that money back. Is this true? It's not something we wanted to make a habit of, but things happen.
What do we do now?
First take a deep breath ... then exhale slowly.
I'm a little confused. Some questions:
1.You say the return was filed already but don't say which year. Did you sign and approve for the return to be filed?
2. You say it is for a sole proprietorship so presumably a Form T2125 was filed. Later on you talk about loaning the company money ... so are you incorporated or are you saying that your personal funds were used to pay for business expenses and the accountant recorded it as Owner Contributions?
3. You also talk about invoicing the employer. Are these expenses related to employment?
As to what you need to do next, you should correct what you feel is not right about the return. See my chat on why you want to amend a tax return
You might consider getting a second opinion.
You can post back with clarification if you want.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.