I earlier had posted a question about my CPA charging me $450 to do my taxes. Price was not discussed beforehand because a third party was paying for it in the past, so it was not a concern of mine. This past year I got the bill for $450 from the CPA stating that I have to pay it this year because the 3rd party won't. I emailed him back saying $450 was way too much for a single w2 filer, and I offered him $200. He says the $450 stands because he did 5.5 hours of work, and that he "knows more lawyers than I do people". Do you think he would actually take me to court for this amount? If he does, would I wind up spending more defending myself in court? What should I do here? I feel like I'm getting totally ripped off!! Just to add to this, I never signed anything up front saying that I agreed to this price. Some of you are saying just pay him and chalk it up to experience, but does he really have a case if I didn't sign anything agreeing to the price?
2006-06-16 08:11:14 · 13 answers · asked by Anonymous in Business & Finance ➔ Credit
It would appear that you are over the proverbial barrel here. By taking your taxes to be prepared by this cpa as in the past it amounts to the "verbal agreement" for payment as in the past. Just because the charge has been handled by a third party in the past, the agreement stays the same and due to the third party's refusal to pay , you are liable for the fee. As to weather they may sue for the payment, the answer is YES! And they will win the case and you will not only have the bill to contend with, but attorney fees as well. It would be in your best interest to try to work out a payment plan with them if they are willing, or just bite the bullet and pony up the denero.Next year you might want to find a new accountant, as this one most likely will just laugh all the way to the bank.
2006-06-16 09:00:07 · answer #1 · answered by nite92 3 · 0⤊ 0⤋
Most CPAs will charge more than HRBlock. HRBlock might be $150, a CPA will usually charge a minimum of $250. Without seeing your return, I can't comment on the difficulty of it. Did you have other earnings besides W2 like investment earnings, did you have a side business and had to file Schedule C, did you have any capital gains or losses to carry forward, did you itemize deductions or take the standard?
If it did go to court a judge would ask if the charge was reasonable, so if you did have any of the other things I mentioned, then it might very well be reasonable. Also, if the same preparer completed it in previous years and charged the same amount and it was paid (even if not by you), then a judge would probably think that the charge was reasonable.
If you are that ticked off about it, I would just send him a check for $250 and let him decide if it is worth his time to chase down the extra $200 bucks from you.
2006-06-16 08:25:09 · answer #2 · answered by g-man 3 · 0⤊ 0⤋
Why isn't the CPA asking for the payment from the third party? Obviously there was at least a verbal contract between the two. Did this $450 include doing their taxes as well as yours, you shouldn't be responsible for their part of the bill regardless. If you do end up paying this amount I would seek restitution from the third party involved. See www.911family.com or www.askalawyer.com
2006-06-16 08:25:20 · answer #3 · answered by mzmscheeveeuhs 3 · 0⤊ 0⤋
How ugly. per chance, even if that is easily the case, you need to write him a letter putting forward that contained in the previous, the 0.33 celebration had no longer shared the assistance on his value with you. If it became not in any respect said with you or written on an illustration or in written assistance youreceived from the CPA, i'd element out it contained in the letter. tell him that you're not any further refusing to pay, yet that because you've been unaware of the price, and he did not prepare it, that you're prepared to barter. do not say that that is too a lot for an common filing because it truly is insulting him, in a fashion you'll then be saying he has no precise to fee that a lot. Ask for a right away reaction. deliver the letter qualified, go back receipt requested. If the reaction isn't the single you want, and he keeps to threaten, tell him, back frivolously, with politeness and in writing that you're going to the contact the corporation on your state that licenses CPAs (i imagine that CPAs have a certification that probable has some regulations of ethics) and filing a grievance contesting the fee. locate out precisely who it truly is and how that is executed previously you do some thing. If he continues to be nasty, do this. deliver a concise letter and all documentation, such as evidence that you had no longer previously paid for his amenities your self. i'd element out the conceited threats he made note for note with a date and time if plausible. THe more effective particular you're the more effective positive your opportunities. i'm no longer a criminal professional or a CPA, yet to me this appears like the way i'd cope with it. good success, and save in recommendations, at the same time as he must have instructed you up the front, caveat emptor. specifically be civil. I do imagine he will sue you and because maximum legal experts fee alot of money, it ought to fee you larger. Plus, you need to ought to pay court expenditures.
2016-11-14 20:58:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
he doesn't have a case unless you signed something agreeing to his services(regardless if price is discussed or not) If you did sign then you would probably spend more in court than the $450 however if you did not agree to his service then do not pay there is no case
2006-06-16 08:20:06 · answer #5 · answered by laura468 5 · 0⤊ 0⤋
Go get a free consultation from a lawyer of your own, He will probably tell you to offer a payment plan so you are not taped, but the CPA still gets his money.
2006-06-16 08:16:58 · answer #6 · answered by David W 2 · 0⤊ 0⤋
I think you may be ok since you didn't sign a contract, however, almost ANYONE can report you to a collections agency and put something on your credit. The burden of proof is often on the person with the messed up credit. If he takes the small claims court route, you may win.
2006-06-16 08:15:26 · answer #7 · answered by WiserAngel 6 · 0⤊ 0⤋
what did you think, he was going to do it for free? You have to pay the guy for doing work for you, but 450 is not right, who did your taxes, trump?
2006-06-16 08:16:19 · answer #8 · answered by skaterbugs 1 · 0⤊ 0⤋
those people don't work for chicken feed
neither do the lawyers so you'd end up paying a big lawyers fee
2006-06-16 08:22:44 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Call the BETTER BUSINESS BUREAU. He may know lawyers but he doesn't want them on his back! Ha Ha
2006-06-16 08:45:32 · answer #10 · answered by sunshine 2 · 0⤊ 0⤋