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Started By
Message
Should I find another CPA?
Posted on 5/5/15 at 7:40 am
Posted on 5/5/15 at 7:40 am
I opened a business in October which has been doing great. I met with two CPA's late 2014 to manage my taxes, and I went with the one I am with now because he promotes himself as a small business consultant and appeared more available.
I found his advice helpful for the first couple meetings because he gave me info that I simply could not get off an internet search or message board. I have met with approximately 3 times the last year for $150 a pop.
He charges $450 to prepare a tax return. However, I found that I did all the leg work--entering into spread sheets all my expenses from 2014 and organizing all my receipts. Do most CPA’s work like this?
I simply handed him a binder with all my expenses and receipts and he had the return done for me in approximately a week. He also set my estimated taxes I owe the next year.
Well, I just recently found out that I could have deducted the interest for my student loans and saved $900 in taxes. He said he could do an amendment for me for $165 if I want.
I have 2 problems with this. As my CPA, I feel like he should have a check-off list of everything that could possibly be deductible prior to filing my return. Although this is ultimately my responsibility, I can’t help but wonder what else he forgot to mention that may have been a deduction.
Also, if I have 3 years to make an amendment, why not wait until later in case we forgot anything else? It’s not like he I don’t have the option of doing the amendment myself or later, I just feel like I am being hustled.
Any input would be greatly appreciated. TIA
I found his advice helpful for the first couple meetings because he gave me info that I simply could not get off an internet search or message board. I have met with approximately 3 times the last year for $150 a pop.
He charges $450 to prepare a tax return. However, I found that I did all the leg work--entering into spread sheets all my expenses from 2014 and organizing all my receipts. Do most CPA’s work like this?
I simply handed him a binder with all my expenses and receipts and he had the return done for me in approximately a week. He also set my estimated taxes I owe the next year.
Well, I just recently found out that I could have deducted the interest for my student loans and saved $900 in taxes. He said he could do an amendment for me for $165 if I want.
I have 2 problems with this. As my CPA, I feel like he should have a check-off list of everything that could possibly be deductible prior to filing my return. Although this is ultimately my responsibility, I can’t help but wonder what else he forgot to mention that may have been a deduction.
Also, if I have 3 years to make an amendment, why not wait until later in case we forgot anything else? It’s not like he I don’t have the option of doing the amendment myself or later, I just feel like I am being hustled.
Any input would be greatly appreciated. TIA
9
Posted on 5/5/15 at 7:55 am to WarmBubble
(no message)
This post was edited on 6/11/15 at 8:50 am
Posted on 5/5/15 at 8:09 am to WarmBubble
First of all. The more leg work we do, the more we will charge you. Depending on your tax return and what all is comprised of it, $450 isn't bad.
Second, a $900 dollar savings on student loan interest is odd bc after a certain agi, depending on your filing status, you get phased out and the max you can deduct is $2500. It's possible though. I'd have to look at it.
Also, we send out an organizer that lets people fill out their info and it asks questions about certain things.
$165 for an amended return that he's already prepared and was paid for? If it's as simple as entering in one figure then we just amend it. Yea, that's be bush league. However, if we have to amend it and spend an hour entering in more expenses or deductions bc you forgot to give it to us, yes then we'd charge a fee.
Second, a $900 dollar savings on student loan interest is odd bc after a certain agi, depending on your filing status, you get phased out and the max you can deduct is $2500. It's possible though. I'd have to look at it.
Also, we send out an organizer that lets people fill out their info and it asks questions about certain things.
$165 for an amended return that he's already prepared and was paid for? If it's as simple as entering in one figure then we just amend it. Yea, that's be bush league. However, if we have to amend it and spend an hour entering in more expenses or deductions bc you forgot to give it to us, yes then we'd charge a fee.
Posted on 5/5/15 at 8:10 am to WarmBubble
Did you try telling him it was HIS job to tell you all the deductions since he saw your expenses?
Talk to him and tell him your issues. If he doesn't budge, take you business elsewhere and tell him why. You know, the same thing he would do to you if he were losing money doing business with you.
Talk to him and tell him your issues. If he doesn't budge, take you business elsewhere and tell him why. You know, the same thing he would do to you if he were losing money doing business with you.
Posted on 5/5/15 at 10:49 am to WarmBubble
If you provided the accountant with the Form 1098-E reporting the student loan interest, and the CPA neglected to include it on your tax return, then he should feel an obligation to correct his negligence. If he will not acknowledge his negligence and correct it for free, then you probably should seek another advisor.
Posted on 5/5/15 at 11:14 am to WarmBubble
Did you provide him with the 1098-E?
Posted on 5/5/15 at 7:21 pm to WarmBubble
quote:
He charges $450 to prepare a tax return. However, I found that I did all the leg work--entering into spread sheets all my expenses from 2014 and organizing all my receipts. Do most CPA’s work like this?
I don't know if most work like this, but if he's doing the leg work for you it will cost quite a bit more than $450 even for a personal return, let alone a business return.
quote:
I just recently found out that I could have deducted the interest for my student loans and saved $900 in taxes. He said he could do an amendment for me for $165 if I want.
If you gave him the loan info then he probably shouldn't charge you to do the amendment, but honestly you probably saved more than that in the upfront fee. If you didn't give him the loan info at first then he's perfectly entitled to charge for it. He can't possibly check for every possible deduction, there are 30 gazillion pages of tax code to go through.
I wouldn't worry about it all that much, we aren't talking about big dollars here anyway. If you want total white-glove turnkey service that will be many thousands of dollars.
Posted on 5/5/15 at 8:43 pm to WarmBubble
His tax prep fee is reasonable. The $150 a pop for each meeting could be considered a bit excessive depending on the amount of time and/or work performed.
$165 for a 1 entry amendment is a little high, but not excessive.
$165 for a 1 entry amendment is a little high, but not excessive.
Posted on 5/6/15 at 11:08 am to WarmBubble
$450 for a personal return with Sch C, for a first-time client, to me, is plenty reasonable and even a bit less than I would charge. This is assuming you, as you said, gave him a clean list of expenses with backup. If you had just given him a mess of stuff, the cost would be much higher.
If you had given him your PY tax return, which contained the student loan interest deduction, OR you had given him the student loan interest statement, then I would say the mistake is his, and he should amend the return without charge to you - that's what I would do at least.
If your PY return did not contain the deduction, and you did not give him the info, I'm not sure it's fair to hold him responsible. Student loan interest is something I try to ask all clients about, but hey, it doesn't always happen.
We do give out a tax organizer to all our clients, which includes some yes/no questions and also specific questions about types of income and deductions. Your first year with me, the organizer is generic, after that, it's personalized with PY info.
I also don't think $165 is outlandish for an amended return. Using software, you basically copy over to a new version of the return, hit the button to copy the data onto the original column of the 1040X, make the changes, and put in an explanation, then print, review, sign, deliver. And because it's a paper return, it actually takes our processing staff longer to process (by a few minutes, but still) than a regular return.
You could certainly do the amended return yourself or wait and see if there are any other changes to be made.
If you had given him your PY tax return, which contained the student loan interest deduction, OR you had given him the student loan interest statement, then I would say the mistake is his, and he should amend the return without charge to you - that's what I would do at least.
If your PY return did not contain the deduction, and you did not give him the info, I'm not sure it's fair to hold him responsible. Student loan interest is something I try to ask all clients about, but hey, it doesn't always happen.
We do give out a tax organizer to all our clients, which includes some yes/no questions and also specific questions about types of income and deductions. Your first year with me, the organizer is generic, after that, it's personalized with PY info.
I also don't think $165 is outlandish for an amended return. Using software, you basically copy over to a new version of the return, hit the button to copy the data onto the original column of the 1040X, make the changes, and put in an explanation, then print, review, sign, deliver. And because it's a paper return, it actually takes our processing staff longer to process (by a few minutes, but still) than a regular return.
You could certainly do the amended return yourself or wait and see if there are any other changes to be made.
Posted on 5/6/15 at 12:21 pm to WarmBubble
quote:
He charges $450 to prepare a tax return. However, I found that I did all the leg work--entering into spread sheets all my expenses from 2014 and organizing all my receipts. Do most CPA’s work like this?
Yes. My dad is going to charge you a lot more if you just drop a box off of receipts to his office.
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