Ticket reseller sues accountants following city audit that found it owes $144K in taxes

A ticket reseller is suing a Skokie accounting firm and two of its employees, asserting they failed to provide adequate information about its tax obligations.

The Ticket Babe Corp. filed a lawsuit Dec. 30, 2014, in Cook County Circuit Court against Jeff R. Wolfe Ltd. and Jeff R. and Larry J. Wolfe, both individually and as employees of the firm.

According to the complaint, The Ticket Babe Corp. retained Larry J. Wolfe Ltd. from 1995 until 2010 to perform accounting services, including the filing of its state and federal income tax returns, along with ensuring its compliance with tax laws.

The Ticket Babe Corp. alleges the City of Chicago performed an audit in August 2007 and determined it had failed to pay $141,413.74 in amusement taxes on the sale of tickets. The company claims Larry J. Wolfe Ltd. breached its duty by failing to notify it that it was not in compliance with city amusement tax requirements and was subject to the tax.

Larry J. Wolfe Ltd, according to the suit, didn't notify the company of the status of the city's audit and failed to adequately work with the city during the audit. The plaintiff asserts it hired a new accounting firm to represent it in the audit, which remains open.

As a result of the defendants' alleged breach of duty, The Ticket Babe Corp. contends it has been subject to arrearages, tax penalties and interest. The company filed an initial lawsuit against the firm in 2012, but voluntarily dismissed it last year with leave to refile it.

The Ticket Babe Corp. is represented by attorney Frank J. Andreou of Andreou & Casson in Chicago.

Cook County Circuit Court case number: 2014L013395.

This is a report on a civil lawsuit filed in Cook County Circuit Court. 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 represents only one side of the story.