Our CPA misled us

[wv112]

I just want to be included in the longest thread. I don't have a pool anymore.

[dsi]

All of you allowed a non tax person to set a record on this board for air time. This just shows how exciting a real tax question can get.

[veritas]

It's in the top

10!..............

[Bees Knees]

Maybe we can set a new record.

[JAinNC]

Is there a limit

to the number of post that can run in this thread? Isn't it 74? Stop the madness.

[Maria]

Our Firm Pays the Penalties

Hello,

We always asks our client to submits payments with the extension. The extension payments cover both 06 tax due and 07 first installments. If after the return is done, there are late payment penalties, we always pay.

We have clients that I work closely. One client always is very ancious about her estimates. I always felt very pressure to answer her questions. One time I had to say "it won't be much," but when I did the calcuation, it ends up that she owes very large amounts since her income triple!. Although no damage (it was before 4/15), she was very upset. I learned a lesson that I should be very caucious.

Thanks.

[sea-tax]

is a Realtor forum for us to post questions on? I have a couple of questions.

Why not ask here , ya never know what some of us know. ( not exactly proper english but you get the point).

[John of PA]

Google it!!

Type Realtor Message Board in Google. I don't know of one personaly but Yahoo for sure has one.

[veritas]

I wonder if there

is a Realtor forum for us to post questions on? I have a couple of questions.

[John of PA]

Before we close

Interest post, before we close I just want to say, in general, that I have found when I take responsibility for my affairs, even if someone appears to be at fautlt, and don't blame others, I am more empowered, have more energy, and accomplish more.

[Gretel]

To some of us, that's a lot of money. It's going to wipe out a significant portion of my emergency fund, and will take a while to re-save it.

It's all relative and a matter of income level/perspective. Realtors are not always rich. Many are barely scraping by.

Same is true for accountants/tax preparers and, I bet, a lot of other professions. Can we close this thread now?

[breckgirl5]

Wow I am truly amazed that all this discussion is taking place for a mere $3200 dollars.

To some of us, that's a lot of money. It's going to wipe out a significant portion of my emergency fund, and will take a while to re-save it.

It's all relative and a matter of income level/perspective. Realtors are not always rich. Many are barely scraping by.

[sea-tax]

Wow I am truly amazed that all this discussion is taking place for a mere $3200 dollars. I don't mean to sound cavalier , but whats done is done and by your own account the CPA prepared the return correctly. There has be no mention of the returns being prepared incorrectly.
breckgirl5 my advice is pay the CPA his money, mention that you were shocked about the change and disappointed about the penalty. If he offers to pay great if not don't do business with him again.
CPA's are like anyone else they aren't perfect they make mistakes, just as each and everyone of us has.

[breckgirl5]

Thanks, Uncle, that was helpful. Many of the comments have been very helpful.

[Joe Btfsplk]

CPA errir

Hello everyone,

I am beside myself with confusion/anger/depression right now and I need help.

For background, husband and I file separetly because he owes back taxes from many years ago. We keep our finances separate and our assets are all in my name.

Up until Q4 2006, my hubby was a realtor with an S Corp. At the end of the year, he exited real estate due to an underperforming market in our area.

We submitted all of his financials to a CPA back in Feb/March. Come April, he called us and said that hubby was due a REFUND from the IRS and state. He said he would file an extension and get the paperwork done by August.

We were naturally thrilled about the refund, and the money we were saving for taxes was then spent on a vacation!

Well, hubby went to pick up his tax forms from the accountant last week and -- low and behold -- he OWES about $2,500!!!!!!!!!!!!!!! (IRS and State combined.)

I am deeply puzzled by this. How could this guy miscalculate SO badly? On top of everythign else, I thought taxpayers were supposed to remit extimated payments with an extension form. Our accountant did not do this. Will hubby now be penalized for not sending $$ with the extension?

Also, can we pay these taxes with a credit card?

We are talking with the accountant tomorrow morning at 8am sharp. I want to have some opinions before then. Thanks in advance for any guidance you can give us. I'm in shock.

Actually the CPA seems to have done one thing right--he rechecked the return and found the error. He probably should have let you know right away that his earlier statement that you would get a refund was wrong.

You would pay less penalty if money had been sent with the extension request, but how was the accountant to know what you would owe until he did the return?

If he filed the extension in April, and told you a refund was due, he must have had the return completed aside from rechecking it, so he should have found the error within a week or two after getting the extension. However there may be extenuating circumstances. It would have been better if he had kept quiet about the refund until he had done everything he intended to do and was sure about it.