One time client, just received notice from California that on his 2013 return he wrongly took a credit for taxes paid in another state. California wants the money back. Client was a part year resident of California ( end of year) and a part year resident of Iowa, which is why I think the confusion happened. Proseries took the credit in California for the taxes he was paying Iowa. I didn't catch the error at the time. Normally I would just go amend and correct Iowa, but notification from California has come after the statute for refunds in Iowa has closed.
I haven't ever filed a claim with my E&O but assume this is the kind of situation to contact them about? Is there a number that makes it not worth filing a claim with E&O amount is $5500.
Opinions appreciated thank you.