CHARLESTON – A prominent Charleston couple claims two certified public accountants and two accounting firms failed to keep them in compliance with the Internal Revenue Service.
Tim and Ramona Dagostine filed their complaint November 15 in Kanawha Circuit Court against Mark Pendleton, Steven S. Robey, Baker Tilly US LLP and Washington Street Legacy LLP. Both of the defendant companies are named successor in business to Arnett Carbis Toothman LLP.
Tim Dagostine is a former Marshall University basketball star, and Ramona Dagostine is a Charleston obstetrician and gynecologist.
According to the complaint, Pendleton and Robey had previously contractually agreed to represent the couple as CPAs, including making sure they were federal income tax compliant. As part of their work, the defendants were paid to timely submit and confirm receipt by the IRS of updated financial information on behalf of the plaintiffs and to maintain the plaintiffs’ agreement with the IRS.
On November 1, 2017, the IRS notified the Dagostines it needed to discuss their agreement with the defendants. The Dagostines say the defendants told them they had promptly and timely submitted the requested updated information to the IRS on November 7, 2017.
Tim Dagostine says Pendleton verbally and via email confirmed he had submitted the required IRS form and was awaiting IRS confirmation of the approved continuation of the agreement because there had been no material change in the plaintiffs’ financial condition, thus there was no need to modify or cancel the agreement.
On April 23, 2018, the Dagostines say they were notified by the IRS the updated financial information had not been received and their agreement was canceled. When the Dagostines asked the defendants to explain, the defendants never provided an explanation.
The Dagostines say the defendants’ breach of contract caused the IRS to terminate and cancel their agreement “which was a financial benefit to plaintiffs and was forever lost to them.” They also say they incurred harassment, threats and damages from IRS agents in the form of asset seizures, liens and ongoing harassment and threatening communications causing financial damages, pain and suffering and emotional damage as well as increased federal income tax, increased penalties and interest owed to the IRS.
They seek compensatory damages, attorney fees and court costs.
The Dagostines are being represented by Ronald N. Walters Jr of The Walters Law Firm in Charleston and by Guy R. Bucci and Ashley N. Lynch of Charleston. The case has been assigned to Circuit Judge Kenneth Ballard.
Kanawha Circuit Court case number 22-C-941