4561 REVIEW DENIED In an action for accounting malpractice based on the claim that as a result of defendant's negligence in preparing a tax return and handling the resulting audit the audit continued for a period of five years resulting in damage, the statute of limitations did not begin to run when the IRS assessed additional taxes and penalties, but when the tax proceeding was complete; although the end result was a tax refund to plaintiffs, the claim that the accountant's negligence caused expenditures connected with the protracted proceeding was a sufficient allegation of damage; since California state tax liability depends to a great extent on federal tax liability, the statute of limitations on plaintiff's claim for malpractice in connection with the state tax return and audit began running at the same time as the claim connected with the federal tax matter.

SAHADI v SCHEAFFER (Tax Refund) 155 CA4 704 [See: CCP 339; International Engine v Feddersen 9 C4 606, T/AT 4/95]