Be Careful When Choosing Your CPA

[Ashley Cast]

Hello Biggerpockets members,

I wanted to post something to kind of caution others about choosing their CPA. This is happening to a family member (they do not invest).

Last night, a family member received a letter from the company they work for that stated the IRS contacted them and they are going to garnish their wages for back taxes in 2014.

Now, to give a little back story. This never knew they owed taxes in 2014. This would be the year they changed CPA because the CPA did not fill the tax forms and filed multiple extension because the CPA did not have enough time to do them. At the end of 2015 maybe beginning of 2016 they received a letter saying they owed taxes. So, they took the letter to the new CPA. They said "no problem they would handle it".

Apparently, they did not take care of it. Since, they got this letter last night. They called their CPA last night and they said they will not do anything about it. So, they called the number their work provided. Their company said, they could not do anything but call this tax lawyer. They called this tax lawyer and he said for him to even look at the case you have to pay him $2k upfront. Then, if he can help you then you would have to pay him $300 twice a month until he handles the situation or not.

The reason I know all this is because they told and asked for my help. I told them to find a new CPA that would be willing to overlook their past taxes.

So, they found a CPA that would look over their taxes and see what they would be able to do.

The point of this very long story is make sure your CPA does what they say they will. Also, do not hire a CPA that recently let go all their staff members during tax season.

[Ashley Cast]

@Jim Kennedy

My family member went to the new CPA today. They found a huge error in their taxes. The huge error is being handling through it will take a couple days to get the information gather and filed and the long process of IRS and state to look at them. The CPA also assisted them in getting a payment plan so their check should not be garnished.

The huge error was the company they worked for rolled their 401k into another company. The CPA that did the taxes put down that the money was taken out of the 401k for personal use.

The great thing I found about this CPA is that he was very upfront with them. Also, helped them find alternative routes in aquireing the information needed that would not cost as much and take the least amount of time.

Luckly, it was a weekday.