Cause for concern with our Bookkeeper?

Our bookkeeper, a property management firm we contract with for accounting services, had a Federal Tax Lien filed against him late in 2016. The lien was released about 5 months later after he paid it off. The total amount was about $20,000. Is this something to be concerned about? Would it bother anybody else to know that that was going on with their bookkeeper/accountant?

I don't care how long it took to pay back, my concern is that it happened at all. It's a small shop property manager run by a husband and wife team with a small office and a staff of 5 or 6, which is fine, but if he's had problems paying his taxes to the point that the govt. puts a tax lien on him, what happens to us if it happens again and he doesn't pay up? "Our accountant had his files and computers siezed by the government," are not words I ever want to say to anyone.

Would it be proper for us to ask him, "What's the story? How did that happen? Have you faced any other financial shortfalls or challenges since the first of the year?"

If it was my personal business's bookkeeper or accountant I'd run, not walk away from this person.

I agree with that. It's not really resentment, though. To me it's part of due diligence and deciding if we want to move on to another service. There are a few more wrinkles but I'm not sure if they're relevant. The company was "XYZ Prop Mgmt, LLC" until 5 years ago when they changed to "XYZ Prop Mgmt, Inc.". That change was recorded and noted on the state's Secretary of State website. That's fine in and of itself, but the actual tax lien names the LLC. The LLC hasn't existed in 5 years and the tax periods on the lien were from last year. Did he knowingly use the LLC name in order to mislead anyone? In our first contract with him 2 years ago the company name was a variation on XYZ Prop Mgmt but was not actually either the LLC or the incorporated entity. Maybe just sloppy paperwork, but the little hairs on the back of my neck are standing up and tingling. No criminal record, charges or allegations ever made from what I can see. And yet something doesn't seem quite right.

Would depend on their side of the story! My feeling because they paid $20K within 5 months is potentially it was an honest mistake. When it was brought to their attention (and IRS tends to immediately lien everything), it appears that they immediately took action to pay off the debt ASAP. If it has only happened this once and based on what they state ... you need to make a decision. Just keep in mind we all can make mistakes and open honest mistakes which are fixed should not incure punishment from others.