NT / Troubled Tax Preparer (Me!)

[RitaB]

Prepared a return in 2004 for a couple with railroad retirement, not all of which was taxable. I figured the nontaxable portion, saving them $216 in tax. They also had itemized deductions, including a refinanced mortgage (prorated points). I had to total all their medical expenes. I charged them $125.

They disappeared for three years. Went to Earl, a well known CPA, who everybody knows is just a good old guy. That Earl, what a card.

Well, Earl messed up every return, 2005 - 2006. He missed the non-taxable retirement, the taxable Social Security (RR equivalent), the points, the medical expenses. Lots of letters from IRS. Of course, IRS doesn't catch the missed deductions, just the missed taxable income.

The couple came back to me this time, on April 15, no less. And you know what? They commented on what a nice guy Earl is. And, he only charged them $40.

Whaa?

I just finished their return today. Oh, yeah - my fee went up.

[erchess]

Did you

check out their 2007 or are you going to wait for IRS correspondence?

Someone on this board, perhaps more than one person, has said that they do not take clients back. That might be a wise policy, I don't know.

[RitaB]

Yeah

I had the dates wrong on OP. He messed up 2005, 2006, and 2007. They brought the 2007 return, but I didn't have the client records. I know Earl missed the nontaxable RR benefits, refinance points, and medical expense. IRS knows Earl missed the taxable SS benefits. They've already sent the bill.

These folks just left with their 2008 return. They were so appreciative. When I showed them the 2007 Schedule A with ZERO medical, they said, "Oh, we had lots of medical expense." (He had big premiums in 2008, and half his lung removed in 2007, so I believe that!)

I suggested they ask Earl to amend the 2007 return.

"Oh no, we are not going to Earl. He's a nice guy, but we have had nothing but trouble since we went to him. We will get our records together, and let you do it."

We'll see what happens...

[JohnH]

You could always tell them that buying tax preparation service is a lot like buying oats.

For a reasonable price, I can assure you that you will get good oats from me.

But if price is your only consideration, then you can go to Earl. He will charge you less, but he will provide you with oats that have already been through the horse.