Client accuses Kingwood accounting firm of bad advice

A Harris County resident is suing after, he says, bad advice from a Kingwood accounting firm cost him $50,000 in taxes, interest and penalties.

Roger Olmsted filed a lawsuit on June 13 in Harris County District Court against Kingwood’s Price & Price, citing breach of contract, violations of the Texas Deceptive Trade Practices Act and negligence.

Olmsted says that the accounting firm Price & Price negligently advised him to list himself as a real estate professional on his tax returns. According to the brief, the deductions Price & Price took on Olmsted’s behalf, because of his “real estate professional” status, resulted in an audit of his 2003, 2004, 2007, 2008 and 2009 federal tax returns and cost him $50,000 in taxes, interest and penalties.

Olmsted is seeking damages, attorney’s fees and court costs. He is being represented in the case by Houston attorney Lennon Wright.

Harris County District Court Case No. 2011-35064.

This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.