Losing my mind - taxes

[china mom]

I had to change tax preparers several years ago and have not been able to find a satisfactory one since.

I called this new guy (not new but new to me) and I expressed to him that my number one concern was that my taxed be prepared and submitted well in advance of the tax deadline. Told him I had been burned before and that it was a huge thing for me. He assured me that it was no problem. This conversation took place in early February. He charges double what I have been paying but he inspired confidence.

I uploaded all of my tax documents to his portal on February 10. In March, he informed me that he had filed an extension on my behalf. Now, keep in mind that if you are going to owe taxes, you still have o pay by the original tax deadline...an extension does not change that.

I heard nothing from him for weeks and then I started bugging him repeatedly via phone, text and emails. I kept getting promises that my taxes were done but in review by his team. Tax day was May 17 this year and I was told that it would be in review for another week or two. So, I asked for an approximate dollar amount to pay the IRS and instead he answered a totally different question.

On May 24, I get an email from one of his team asking me for information that is stuff that they would have needed at the very beginning of my tax prep. he also asked me for documents that are very time consuming to dig up (and no one has ever asked for before - settlement papiers from 2002). If they had asked me for them months ago, I would have had them ready.

So, today, I am again told that the taxes are almost done. I demand a dollar amount of my 2020 estimated taxes so that I don't incur interest and penalties and the response was that they would get me that tonight.

Note that I did not send them a shoe box full of receipts but rather uploaded to their portal all of my tax documents, last year's returns and a five spreadsheet workbook with all of the numbers compiled and ready for the...in the order that they would appear on my return

Obviously, I am not going to use them next year. What would you do about this year?

Pay him promptly when he finishes his work (haha)

Take my time paying him equivalent to the amount of time my taxes are late

Ask him to adjust his bill equal to the interest and penalties charged by the IRS.

 

[sam_gordon]

I had to change tax preparers several years ago and have not been able to find a satisfactory one since.

I called this new guy (not new but new to me) and I expressed to him that my number one concern was that my taxed be prepared and submitted well in advance of the tax deadline. Told him I had been burned before and that it was a huge thing for me. He assured me that it was no problem. This conversation took place in early February. He charges double what I have been paying but he inspired confidence.

I uploaded all of my tax documents to his portal on February 10. In March, he informed me that he had filed an extension on my behalf. Now, keep in mind that if you are going to owe taxes, you still have o pay by the original tax deadline...an extension does not change that.

I heard nothing from him for weeks and then I started bugging him repeatedly via phone, text and emails. I kept getting promises that my taxes were done but in review by his team. Tax day was May 17 this year and I was told that it would be in review for another week or two. So, I asked for an approximate dollar amount to pay the IRS and instead he answered a totally different question.

On May 24, I get an email from one of his team asking me for information that is stuff that they would have needed at the very beginning of my tax prep. he also asked me for documents that are very time consuming to dig up (and no one has ever asked for before - settlement papiers from 2002). If they had asked me for them months ago, I would have had them ready.

So, today, I am again told that the taxes are almost done. I demand a dollar amount of my 2020 estimated taxes so that I don't incur interest and penalties and the response was that they would get me that tonight.

Note that I did not send them a shoe box full of receipts but rather uploaded to their portal all of my tax documents, last year's returns and a five spreadsheet workbook with all of the numbers compiled and ready for the...in the order that they would appear on my return

Obviously, I am not going to use them next year. What would you do about this year?

Pay him promptly when he finishes his work (haha)

Take my time paying him equivalent to the amount of time my taxes are late

Ask him to adjust his bill equal to the interest and penalties charged by the IRS.

If you've got all the information, why not either go to one of the many online tax prep software (turbotax, taxslayer, h&r block, etc) and see if you can do the taxes yourselves or find another tax preparer? Once you get a solution, then drop this guy. Are you taxes that complicated?

 

[china mom]

If you've got all the information, why not either go to one of the many online tax prep software (turbotax, taxslayer, h&r block, etc) and see if you can do the taxes yourselves or find another tax preparer? Once you get a solution, then drop this guy. Are you taxes that complicated?

They are a bit complicated for me to attempt myself. I have four rental houses and started a 1031 exchange that was completed in 2021. Depreciation alone boggles me.

I had thought about switching preparers at one point but the new one would have had time to get them done and the current was was "sooo close" to getting them done - or so he led me to believe.

 

[sam_gordon]

They are a bit complicated for me to attempt myself. I have four rental houses and started a 1031 exchange that was completed in 2021. Depreciation alone boggles me.

I had thought about switching preparers at one point but the new one would have had time to get them done and the current was was "sooo close" to getting them done - or so he led me to believe.

If it was me, at this point, I'd contact 3-4 other preparers. Ask them how long they'd take to do your taxes and what they'd charge. This shouldn't be their busy season (I would think). Once you get the answers call the current guy and tell him if the taxes aren't filed/ready by 'x' day, you're taking your business elsewhere.

It's either that or just suck it up.

 

[lifesavacation]

Our business was audited and we had to pay penalties and interest. The accountant would not pay it even though it was his mistake. After the audit, I interviewed several more accountants. None said they’d cover penalties and interest if they make an error. The tax payer is ultimately responsible. From that point forward, I’ve done my own complicated business taxes so I know what goes on every single line. At least if it’s wrong, it’s my error and I’m not forced to pay for someone else’s mistake.

So my advice is to do it yourself. You can try and get the guy to pay for any penalties and interest, but I doubt you’d be successful.

 

[longboard55]

Taxes are pretty easy with Turbo Tax. I find tax services are a minimum wage employee typing in numbers and making lots of errors. I like to go through mine with extreme care so I do it on my own.

Biggest reason for an audit, is an error.

 

[china mom]

Our business was audited and we had to pay penalties and interest. The accountant would not pay it even though it was his mistake. After the audit, I interviewed several more accountants. None said they’d cover penalties and interest if they make an error. The tax payer is ultimately responsible. From that point forward, I’ve done my own complicated business taxes so I know what goes on every single line. At least if it’s wrong, it’s my error and I’m not forced to pay for someone else’s mistake.

So my advice is to do it yourself. You can try and get the guy to pay for any penalties and interest, but I doubt you’d be successful.

I am familiar with the idea that they won't pay interest and penalties that are later assessed. I'm talking about deducting them from the bill that I owe him. It probably won't work but it can't hurt to ask.

 

[DisneyHardin]

Sounds like you need to find someone that you make an appointment with and work through your taxes right there. Mine are somewhat complicated due to some side businesses I have. I try to organize everything super well in advance of our appointment and then I sit there with her while she enters everything and asks questions, then at the end, she submits it.

 

[china mom]

Sounds like you need to find someone that you make an appointment with and work through your taxes right there. Mine are somewhat complicated due to some side businesses I have. I try to organize everything super well in advance of our appointment and then I sit there with her while she enters everything and asks questions, then at the end, she submits it.

That's exactly the kind of person I used to have and would like to have again. When she was in her prime, she was super great and did your taxes right there with you. She was well worth the 1.5 hour each way drive.

She was impossible to get in to see. when you went in for our taxes, you already had your next year appointment booked and you signed up for the year after that right then. so, booked two years out.

Ten she suffered a health setback and went to drop off taxes but had taken on too much so she didn't get them done until the last second

Ever since, I have only been able to find drop off guys.

 

[tvguy]

Yeah, find another preparer. In past years, I usually have my complete tax forms in my mail box 2 or 3 days after dropping off my documents. This year was different because the IRS stopped accepting returns because they had to reprogram their computers to not tax the first $10,000 in unemployment benefits due to the Pandemic Tax Relief bill. And my preparer this year finally started submitting tax returns electronically. He had too many IRS data entry errors in the last year, so my returns were complete and filed one day, I picked them up the next day, and my Federal refund was already in my bank account

 

[3boymthr]

I'm a bookkeeper and used to work for a CPA firm. Aside from dumping this guy, my suggestion to you; unless you think your tax amount went up significantly or down significantly, pay the IRS the amount of tax you paid last year and stop the bleed. If the amount you pay is wrong the interest and penalty will only be on the difference that you underpaid. If you overpay you will get a reimbursement.

BTW - I've worked with CPAs who sound just like this guy. I can tell you right now this guy probably has tons and tons of tax returns landing on his desk and he is filing extensions on ALL of them so he doesn't have to pay his employees overtime. The only customers who are priorities are friends or those who have audits pending or need their tax returns completed so they can get a loan.