taxes-CPA checking over?

Question

i decided to do my taxes this year. however, earlier in the year i consulted with a CPA and went over my estimated taxes. i paid her for her help at that time. she contacted me this march and i told her i was going to do them myself. i just got an email from her telling me she would be happy to look them over for me no charge. What's the catch? I would love for her to look at them but now sure why she would do it for free. Tax season is over but it would be nice to see if she catches something i missed for next year.. What are your thoughts?

so... if there was something i missed or did wrong ...would she be able to report me..?? i know that sounds far fetched but i don't want to get screwed here...

well, i think i'll still benefit b/c i still don't have to go with her next year. who knows she might catch something and tell me about it..it will just make me aware for next year to watch for it..

Answer 1

I wouldn't say that we hate the IRS, but that CPA's act as advocates for their clients. We have to comply with the rules, but in that process we can develop short and long-term strategies to assess how your income and spending activities effect your taxes.

She's working to build the client relationship with you and show you where she can add value. We're constantly looking at what the government (and states) are doing to the tax code and what impact it has on our clients. A lot of times, there are little things that mass produced tax programs aren't going to pick up on. That might be the case in your situation, it might not.

I've never seen or heard anyone report to the IRS for a minor error on a return. It would probably take a major fraud that was impacting other people (adversely) for that to happen. And we're certainly not bound to report discrepancies either. We advise, but the ultimate responsibility for taxes falls on the taxpayer.

Free consultation? It can't hurt. She must really value you as a client. That's a really good quality to find.

Answer 2

It is true that you could claim a large number of dependents on your W-4 then pay at the end of the year. However, it is now an offense to claim dependents when there is no basis for doing so. No matter how income is derived, the USA has a pay-as-you-go system. In the normal course of events, everyone has to pay tax at least four times a year. That is life and all you can do is manage your withholdings so that the tax liability on your return roughly equals what has been withheld during the year. In any case, you will still have to pay FICA taxes and, depending on your state, unemployment taxes on each paycheck.

Answer 3

The catch is luring you in for next year.

She could be well intentioned to give you free advice this year, but all she is looking to do is getting you for next year. More than likely, she will be nagging
you next year.

There is no such thing as a "free lunch". There is always a catch.

And, no, it would be "unethical" for her to report you to any governmental agency if she feels you did anything wrong on your return.

Search out a friend instead, someone with some expanded knowledge of the tax laws to review your return.

Answer 4

Trust me, no CPA is going to pick up the phone and tell the IRS about you. Most CPA's hate the IRS and would do nothing to help them.

She will go over them, to see if you missed any obvious deductions, then she will tell you that they look good, but by using her you could have saved, X dollars.

Sounds like nothing to lose, I would let her.

Answer 5

I think that's her point, too. If she can demonstrate that she can be of value to you, you're more likely to use her services again next year. I don't think there's any catch. She's offering you a professional courtesy.