is this fee kind of expensive for a tax accountant? (insurance, small business)

[slcmo]

We looked into HR block premium office staff, she will be giving us a year round advice and there’s a guarantee that if they made a mistake on our tax, they will pay for our interest fee to the gov. if we get audited, they have legal representative that will represent us. We have a small business, only one client, but since we have moved from state to state this year, she’ll need to figure out the other state’s tax laws. Only my husband is working and we have a 4 year old. She’ll also be working on paper works to have me be on a schedule, so I get paid from our small home business for the work I do. She’s charging us $800-$1000 during tax season which includes all these services; do you think it’s reasonable? I wasn’t used to this high price, we used to only pay for $250 at the most for our taxes before we moved from state to state but we didn’t get much advice from our tax accountant…what’s your input on this price quote? Many thanks.

[bande1102]

What is the background of this tax accountant? What qualifies this person to guide you through the tax season. Unless the person is a cpa(who specializes in taxes) or enrolled agent, I'd not trust them with my taxes. Not sure what state you're in, but most states don't have any regs whatsoever as to who can prepare taxes. An enrolled agent has actually passed the IRS SEE exam and is required to take numerous continuing education classes that specifically relate to taxation issues. CPA's have continuing ed, too. Multi-state returns can get complicated and I'd make sure this person had done them before and knows what they're doing.

Regarding who can represent you if you get audited: I'd want to pick the person to represent me. I'd be looking for someone experienced in dealing with the IRS.

Finally, most tax preparers have errors and omissions insurance which covers the interest incurred because of tax preparer error. So that's not a big selling point to me. And I think the key here is "tax preparer error". If the preparer didn't ask the right questions and/or you didn't supply all of the necessary information; then the return could very well be prepared correctly---according to what you gave her to work with. In that case, you're responsible for the interest. This happens way more than you'd think.

And this person is handling your business, too? So she'll be figuring the estimated tax payments? and bookkeeping?

Bottom line is if I was using this person I'd want to know what her credentials are, how many returns like yours she does a year, what her continuing education is, and how many multi-state returns she's done. Good luck.

[slcmo]

Originally Posted by bande1102

What is the background of this tax accountant? What qualifies this person to guide you through the tax season. Unless the person is a cpa(who specializes in taxes) or enrolled agent, I'd not trust them with my taxes. Not sure what state you're in, but most states don't have any regs whatsoever as to who can prepare taxes. An enrolled agent has actually passed the IRS SEE exam and is required to take numerous continuing education classes that specifically relate to taxation issues. CPA's have continuing ed, too. Multi-state returns can get complicated and I'd make sure this person had done them before and knows what they're doing.

Regarding who can represent you if you get audited: I'd want to pick the person to represent me. I'd be looking for someone experienced in dealing with the IRS.

Finally, most tax preparers have errors and omissions insurance which covers the interest incurred because of tax preparer error. So that's not a big selling point to me. And I think the key here is "tax preparer error". If the preparer didn't ask the right questions and/or you didn't supply all of the necessary information; then the return could very well be prepared correctly---according to what you gave her to work with. In that case, you're responsible for the interest. This happens way more than you'd think.

And this person is handling your business, too? So she'll be figuring the estimated tax payments? and bookkeeping?

Bottom line is if I was using this person I'd want to know what her credentials are, how many returns like yours she does a year, what her continuing education is, and how many multi-state returns she's done. Good luck.

what's an enrolled agent? I see that she's an enrolled agent/E.A/Master tax advisor..what does that mean? and what's the difference between her title than a CPA? what's an E.A.? thanks.

[Chuckity]

We pay approx. $400 per year to have our taxes done.

I'm self employed, DH is not (he has an employer), we have additional small side businesses and we have investment properties in two different states.

I'm very well organized when it comes to turning over info to our accountant each year - but trust me when I say our taxes are not easy.

We pay taxes quarterly and she sets that up for us - and has always been available for advice in between filings.

[slcmo]

Originally Posted by Chuckity

We pay approx. $400 per year to have our taxes done.

I'm self employed, DH is not (he has an employer), we have additional small side businesses and we have investment properties in two different states.

I'm very well organized when it comes to turning over info to our accountant each year - but trust me when I say our taxes are not easy.

We pay taxes quarterly and she sets that up for us - and has always been available for advice in between filings.

m..I wonder why ours is SO..expensive, is it due to the HR block advertisement fee? anyone here uses HR Block?

[70Ford]

I used to do my taxes with pen, paper and a calculator. Then I went overseas and was worried about doing 'em right. I used H & R Block....once....in 1999. They got my taxes done wrong. And had to pay more tax + a fee.

When I went to complain, the office had already closed down. Been using Turbotax since then. No problems. Costs me less than a 100 bucks to buy the program every year and file. I do pay for "audit protection" just in case.

Never had any issues at all with the IRS before or after 1999. Go figure.

[Driller1]

Originally Posted by Ford

I used to do my taxes with pen, paper and a calculator. Then I went overseas and was worried about doing 'em right. I used H & R Block....once....in 1999. They got my taxes done wrong. And had to pay more tax + a fee.

When I went to complain, the office had already closed down. Been using Turbotax since then. No problems. Costs me less than a 100 bucks to buy the program every year and file. I do pay for "audit protection" just in case.

Never had any issues at all with the IRS before or after 1999. Go figure.

I still do mine that way! Just went tough a 05/06 audit. They made no changes. I file once a year with a schedule C/1040. I just do not trust anyone to have my back.

[Donn2390]

If she was really a tax expert, she wouldn't be working for H&R Block. that is your first tip off.
Find a good, established independent tax specialist.

[forest beekeeper]

To determine if a 'tax advisor' is any good, you need to ask them if they pay income taxes, personally themselves.

If they do pay income taxes, themselves, then they do not have a clue of how the system works.



The same goes for an investments counselor. How much have they earned in their investments during each of the past ten years? If they earned less than double the prime interest rate, then they too do not have a clue.

[hueimo]

Originally Posted by forest beekeeper

To determine if a 'tax advisor' is any good, you need to ask them if they pay income taxes, personally themselves.

If they do pay income taxes, themselves, then they do not have a clue of how the system works.

I thought everyone will need to somehow pay some income taxes? who doesn't?