FULL VIDEO AT THE END OF THE POST
The Accounting Firm Acquisition
Ms. Burns, the plaintiff, owned an accounting firm.
She and her mentor, Mr. Behar, purchased a friend's accounting firm.
The friend was Ms. Byron.
Mr. Wallach, the defendant, was a long-standing client of Ms. Byron's firm.
He had been with the previous firm for approximately 25 years.
Ms. Burns' firm continued to provide services to Mr. Wallach.
She is now seeking payment for an unpaid bill of $2,288.
Mr. Wallach has filed a counterclaim.
He alleges that Ms. Burns' firm was negligent.
He claims their errors caused damage to his business.
He also states he incurred penalties and delinquency charges.
Defendant's Long-Term Relationship
Mr. Wallach explained his history with the previous accountant.
He stated she was an accountant, not a CPA.
She handled payroll for his business.
She paid all his taxes, including EDD.
She performed complete accounting for his business.
Plaintiff's Qualifications Questioned
Judge Judy asked Ms. Burns about her training.
Ms. Burns stated she is an enrolled agent.
She is enrolled to practice before the Internal Revenue Service.
Judge Judy asked about her bachelor's degree.
Ms. Burns confirmed she does not have a bachelor's in accounting.
Her degree is a Bachelor of Arts in Business Administration.
It has a management emphasis.
She graduated in December 2007.
After graduation, she worked for a healthcare technology company.
She helped healthcare providers submit claims electronically.
Judge Judy noted this was "not accounting."
Ms. Burns explained she met Mr. Behar before graduating.
He is an enrolled agent.
The Transition to the New Firm
Ms. Byron, the previous accountant, had a stroke in August 2017.
Ms. Burns and Mr. Behar purchased the firm before March 2018.
Mr. Wallach became a client of Ms. Burns' firm in mid-March 2018.
He paid an invoice of $111.92 to Ms. Burns' firm in April 2018.
Disputed Payments and Billing
Mr. Wallach received a bill for $432.49 from Ms. Burns' firm on June 5th, 2018.
He stated he paid this bill.
He claimed the check was cashed three months later.
He found out he was not credited the money.
He said they were waiting three months to cash checks.
Judge Judy asked who he wrote the check to.
Mr. Wallach replied, "Byron."
Ms. Burns interjected, "I'm not Byron."
Mr. Wallach stated he sent the bill to Ms. Byron.
He believed Ms. Byron was working for the firm at that time.
Ms. Burns clarified that she was not working for Ms. Byron in June.
Mr. Wallach's former accountant charged approximately $150 a month.
He paid $432.49 in June to the old accountant.
Ms. Burns stated Ms. Byron had a stroke.
She questioned why Ms. Byron would cash the check.
Ms. Burns claimed Mr. Wallach owed for May, June, and July.
The $2,288 Invoice
Ms. Burns presented a bill for $2,288.
She explained this amount covered payroll that was twice a month.
It also included a payroll tax return.
They had to go back and input data Ms. Byron had not done for 2017.
Ms. Burns stated Mr. Wallach dropped off paperwork for 2017.
She claimed he asked them to input it.
She also stated they discussed the fee with him.
The first invoice for $111.92 was paid by Mr. Wallach.
This invoice showed their fee.
Mr. Wallach's Counterclaim Details
Mr. Wallach explained his counterclaim.
He is receiving delinquent bills for business licenses.
He stated these were never handled by the accountant.
He also received EDD notices for delinquencies.
He claimed federal tax deposits were submitted incorrectly.
He said many mistakes were made with federal tax deposits.
He presented documentation to Judge Judy.
Ms. Byron's Continued Involvement
Judge Judy asked Ms. Burns about Ms. Byron.
She inquired if Ms. Byron was back in business.
Ms. Burns confirmed Ms. Byron was back on a very limited basis.
Ms. Burns stated she was not working with Ms. Byron.
Judge Judy questioned Ms. Burns about tax deposits in March 2018.
Ms. Burns replied she did not believe her firm handled them.
She believed Ms. Byron was doing that.
Judge Judy noted the situation was "muddy."
She reminded Ms. Burns that she had stated Ms. Byron had a stroke in August.
She pointed out that Ms. Burns' firm worked for March, April, May, and June.
Delinquent Business License
Judge Judy showed a document for a delinquent business license.
The payment was due on July 1st.
Ms. Burns was asked if her firm was supposed to handle it.
Ms. Burns explained that payroll returns have a due date.
They are due the first day of the month after the quarter ends.
She stated they are not delinquent until after a certain period.
Judge Judy pointed out the payment was due on July 1st.
Ms. Burns argued the payment was due in August.
Judge Judy clarified the payment was due July 1st.
She noted the penalty applied after August 31st.
Ms. Burns mentioned a grace period.
Judge Judy's Decision
Judge Judy stated, "I'm done."
She asked Mr. Wallach if he was happy with his new accountant.
Mr. Wallach confirmed he was "very" happy.
Judge Judy then dismissed the case.
Post-Dismissal Reactions
Ms. Burns questioned the dismissal.
She believed Mr. Wallach did not explain things correctly.
She claimed they left their business unattended.
She stated he was receiving old bills and paying them.
She also said he was paying her, which she claimed was untrue.
Ms. Burns concluded that everything became a mess.
She said they could never get a hold of him.