I must admit I'm impressed that EAs are getting aware with
like this!

I can't believe those fees...

Charles Markham, EA in MA

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"Andy Katz" <amkatz[at]earthlink.net> wrote:

- quote -

I think that's wrong. They told you they would get back to
you with a ballpark estimate. I can't believe they went
forward with all of the returns without checking with you.
Hell, we typically only do a couple years in a case such as
yours and wait to prepare the rest until we're sure we'll be
paid.

Mike

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Andy Katz wrote:

- quote -

Good grief! Even for New York that seems mighty high to
me. Which is probably why I recommended someone from across
the river, remember?

Looks like they based the fee on the savings to you.
However without having had an understanding about the fees
first off, you do have a problem.

Best thing is to schedule an apointment with the preparer,
sit down and outline your concerns about the fee. Probably;
hopefully, he'll come to some compromise with you, specially
if you stress how PLEASED you are with his work.

For any new client, I always make a point to estimate the
final fee, usually on the high side, so he'll be pleased
when he comes back.

Good luck!
and Cheer$,
Harlan Lunsford, EA in LA

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"Andy Katz" <amkatz[at]earthlink.net> wrote:

- quote -

[snip]

- quote -

[snip]

- quote -

If the fee includes federal, state, and NYC then you got a
reasonable, but high, deal. Pay for the years you can
afford, get those refunds and then pay for the rest.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Andy Katz <amkatz[at]earthlink.net> wrote:

- quote -

Does NY State or NYC have any consumer laws which require
you to agree to a price (perhaps within some limits) or you
are not liable? Ohio does have such a law, and we always
provide a range of estimates and obtain at least verbal
concurrence from the client.

Now that the work has been done, if there is a such a law it
might provide you with some bargaining leverage.

Without seeing the tax returns or the input provided by you and by
the preparer, it is difficult to say if the fees are too high or
not.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Hi everyone,

First, I'd like to say thanks again to those who responded
to my earlier queries about delinquent returns.

Now I have another question;-)

I contacted an EA in Manhattan and outlined our problem. He
focused, naturally, on the open years, 2000 - 2002 and
prepared a 1040 sched A for 2000 (I had already prepared a
simple 1040 for that year, but he managed to realize an
additional $3,000.00 or so in refunds by using the sched A).

Meanwhile I spoke to another man in the same office about an
IRS collection for 1990. Essentially I got passed off from
one to the other. I asked the second man about fees and he
replied, Let's see what's needed and I'll give you a
ballpark.

With the understanding that they would contact me in a few
days, I left.

A secretary for the office called Tuesday to say the "forms
are ready." She told me the fee would be "$1950.00" for
2000, 2001, 2002, or $650.00 each. Neither EA was available
at that time.

Now I've spoken to a number of different people over the
years about this problem. Many have offered to do the
preparation. I've been quoted prices from $75.00 per to
$300.00. But never, never $650.00 just for filing out 1040
sched A (remember, I already did the basic 1040). Okay, so
Manhattan is probably one of the costliest places to have
your taxes done, still, I would have appreciated a heads-up
(matter of fact, I recall discussing line 20 of the sched A
with him, but he skipped right over line 21--I was sitting
opposite him and couldn't see the form at the time). My
answer would have been, Fine, do the one form, I'll pay you
the $650.00 and do the others myself.

I don't have $2,000.00 to give this guy. And the priority
was the 1990 collection, about which I still haven't heard
back. It took about ten minutes for him to fill in the
expenses for 2000, and he did the other years using
information, which was consistent, from 2000.

Please don't misunderstand me. I definitely screwed up in
leaving the office without knowing what the per form fee
was; and I'm not saying these guys don't deserve any money.
They do. They were professional and helpful. (Incidentally
or not, he didn't ask me about unreimbursed medical expenses
for those years. Later when I realized the omission, I
calculated them, conservatively, at about $11,000. When I
told the secretary, she asked me to fax them over, but I
won't until I know what it will cost).

I'd just like to know if their fees for the 1040 sched A
preparation are out of line or not. And if not, is there
any way for them to collect from the refund itself, say the
way a literary agent might?

I believe their numbers and advice were valid, but I know
from experience that the IRS is quicker to collect than to
hand out money, and I'd be very surprised if, after filing
the open years, the closed years back to '97 and taking care
of the 1990 collection, they just meekly handed over a
check.

This EA told me over the phone that if he couldn't help me,
ie get me more money from the government than I paid him, he
wouldn't charge me anything. Based on his preparation we
should be getting more than the 2,000 (plus whatever the
1990 issue might cost), but that may take a spell.

I still feel he ought to have been more upfront about such a
large fee.

Reactions?

TIA

Andy Katz

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