Our CPA misled us

[kthurman]

Undercharging for tax preparation services

You all asked for the results.

Hubby & I tried to 3-way call the CPA (he IS a CPA) today. As usual, he did not answer and we waited until early afternoon for him to call back. Hubby got the call.

Apparently the issue was a dispersement that Hubby had entered into the spreadsheet of income & expneses. CPA did not see that and was going off the the W-2s only when he said hubby was getting a refund.

So, yes, it's a classic case of miscommunication. Hubby is mad now, because he says CPA should have looked more closely. I would say they both bear some responsibility.

His penalty is about $75. I do plan to deduct this from the CPA's bill of $325.

To answer some of your questions about why hubby owes from years past... he was always self employed and never hired an accountant to help him. He was young and, well, stupid about taxes. April would come, and he had never saved enough money. He was a single dad and was pretty poor. He was just trying to eat. He comes from a family that never taught him about finanes. They are all pretty irresponsible.

Now that we are married (and he is actually in a salaried position for the first time) things will be better because I am handling all the books and bills. This will NOT happen again.

Personally, this is why I think it makes sense to prepare less returns for higher fess than fewer returns for lower fees. There's no way I could do a tax return for $375 and make a profit on it. Rushing through returns because you undercharge and have too many prepare does a disservice to both Taxpayers and the CPA profession.

[Zee]

To be honest, I'd return your tax preparation fee, and tell you to find someone else next year. Anyone can make a mistake, and I agree with many of the others. You asked him for an estimate before he had a chance to complete the return, but want a guarantee of accuracy. I suppose I might guarantee the accuracy of such an estimate, but you'd pay for it in the preparation fee. Would you have doubled his fee if your refund was twice as much as you expected, or complain about it?

[dsi]

Veritas nailed it. Nevertheless, I would never consider asking someone else to pay the penalties & interest that I was if fact responsible for. All to often in the world today, nobody seems to want to be accountable for themselves.

[BOB W]

How did this thread come alive again?????????? Don't bother reading it as it will take an hour or more.

[luke]

What did I miss?

this post is from 2007 - I'm still fairly new to forum so what's up?