our title company did not pay the IRS the total amount of the lien (unsure why---most likely human error) and subsequently transferred the remaining funds to our personal bank account which we then used to put down on our new home. The IRS went after the title company to make up the difference. The title company paid the IRS and then began asking us for the money. Our accountant said the title company made a mistake and it was not our responsibility to make them whole. She said that's what title insurance is for. We're now being sued in small claims court by the title company (in CA). Do we have a responsiblity to pay back the title company? Or should the title insurance take care of this as our accountant says it should? If so, why are we getting sued?!