Because of the mistakes, Durant and his company will have to file amended state and federal tax returns and pay back taxes, interest and possible penalties, the lawsuit complains.
Durant also specifically complained in the lawsuit that the accountant failed to make sure that all travel costs deducted as business expenses on corporate tax returns were, in fact, business-related.
The lawsuit states that K. Durant Enterprises paid for all travel arrangements for Durant and company employees “during the relevant time period ... to the tune of more than a million dollars.”
“Although much of this travel was business-related, some of it was personal in nature,” the lawsuit states.
“A reasonably prudent accountant would have ... sought documentation to confirm that each travel expense for which a deduction was recorded was truly business-related.”