re: Billing dispute with CPA

First off... this sucks. This is why people have such a low opinion of the IRS. Sadly, your situation is not that uncommon at all.

Is this guy an actual CPA in public practice, or just a company CPA doing side work, or is he a CPA at all?

While I agree his costs remain high, I don't know how much his hourly rate is, what you all agreed to, and how much time he spent handling the situation.

I would not pay the IRS one dime. Call them, yes, wait on hold, and ask them what exactly the status is of information that has been sent to clear the issue.

Another option, depending upon where you live, is to go to one of the Taxpayer Assistance Centers. Plan to spend the day there. Get in line there 30 min before they open, bring with you copies of your tax return, all notices you recieved, and the proof that you have fixing the issue. You will be able to meet with someone in person and hopefully get this thing resolved.

As far as what to do with the other CPA, how much have you actually paid him? If it is all but the $450, I would call him and see if you can pay him part of that. In reality, he's probably not going to sue you for $450. But... you said it's a guy related to your mom's company... so it's a little bit messier.

Sorry you are having to go through this.