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Discussion:Should I be upset?

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Discussion Forum Index --> Consumer Questions --> Should I be upset?


Eaglewatcher (talk|edits) said:

March 8, 2007
I recently received a letter from my longtime taxpreparer(CPA)

indicating because of other parts of his practice he would no longer offer tax preparation service. He stated in the letter he had made arrangements with another firm to take on his tax work and we would need to sign the release form enclosed so he could transfer our files.(when this happens do other firms pay the referring party a fee? i.e. did my ex-preparer get a fee from the firm he referred all his ex-tax clients??)

The week before the letter I had received the tax planner(booklet that I fill in all the numbers). I have six returns, personal, businesses, partnerships, etc. The only reason given was the other parts of his practice had grown to the point he had to dump all his tax clients

This happened in last 2 weeks.

I was always happy with his work, but for some reason I think he should/could have given more notice to his clients. If I choose not to use the firm he referred I have to spend time in the busy tax season to find new tax prep person, move files, etc.

Thanks for your thoughts

Ex-IRS (talk|edits) said:

8 March 2007
It would have been nice if he could have given you more lead-time but maybe he only decided after he sent you the tax planner that he would not be doing anymore tax returns.

You might want to call the new firm to find out if they and you are a good fit.

Stone0772 (talk|edits) said:

8 March 2007
Ditto

Eaglewatcher (talk|edits) said:

9 March 2007
any thoughts if my former preparer maybe "selling" his accounts (maybe the trade term is revenue sharing?)

granted in my world the biggest problem here is the poor timing of his decision to discontinue tax work on extremely short notice, especially if the recommended firm does not work out for me.

has anyone ever heard of a professional making this type decision(apparently no emergency or hardship involved) on such short notice?

Death&Taxes (talk|edits) said:

9 March 2007
The CPA my fiancee used to work for would bitch and moan about tax work all day....wanted to get rid of it and was the type to do so on a moment's notice.

Jilldawson (talk|edits) said:

9 March 2007
Does it really matter if he "sold" his client list to the new tax preparer? I admit he probably left you in a bind with the timing, but I believe he has every right to sell off part of his practice. If you don't like the person he referred you to, you can alwasy file an extension and look for a new preparer after 4/15.

Jdugancpa (talk|edits) said:

9 March 2007
Professional practices are frequently bought and sold. You are not under obligation to the person buying the practice. If you meet the individual and feel good about him, stay, if not, take your work to another professional.

Eaglewatcher (talk|edits) said:

9 March 2007
probably doesnt matter if sold, under normal circumstances....but when you leave clients in a bind and you may be "forced" to use the new "owner" of your account until you can find another preparer(if i had to file an extention because of the inconsiderate business practices, i really would be upset)i have a problem

if i had been notified a couple of months before january, i would have moved ahead with no problem.

actually my "professional" did some other work in other areas for us, but now i have no confidence in him and will no longer use any of his services

Kevinh5 (talk|edits) said:

9 March 2007
You have a month and a week to find someone else. I'll bet you've got plenty of time if you start now. Good luck.

Michaelstar (talk|edits) said:

9 March 2007
You probably should not be upset but frustrated yes. Not very professional unless he is ill and there are bigger issues that he does not feel comfortable discussing - some people are like that. Yes - he sold the practice - that part is a no brainer.

Bottom Line (talk|edits) said:

9 March 2007
A tax preparer that I did subwork for suddenly died about a month ago. The office was closed for about three weeks until his wife was able to find a buyer for the business. The buyer sent a letter to all the clients saying that he had bought the practice but never mentioned that the prior owner had died.

Eaglewatcher - I understand your being upset and feeling like you have been left in a bind but please take the opportunity to meet with the new preparer. You may find that you're more comfortable with this person than the previous one.

Jokadah (talk|edits) said:

9 March 2007
If he decided to not do tax work because of other parts of his practice, did he not khow this a month ago? (Unless I was laid up in a coma, I feel that I have a responsibility to my clients to prepare their returns.) I'd try and meet with the new preparer and see if you click. Is the new preparer taking appointments or will you just be able to drop off your completed organizers? How long has the new firm been in business? Do you know what the fees for the new firm will be? You should have been given more notice and telling a client that they are being dumped to grow his firm does not sound very professional to me. I would imagine that the new firm paid him for his clients. Since you have six returns, including business and partnerships, a month is not a lot of time to find a preparer. If you don't feel comfortable with the new firm, try calling or ask associates and friends for a recommendation. Best of luck to you.

CrowJD (talk|edits) said:

9 March 2007
You can't sell a client. What difference does it make to you if he sold his tax practice? You don't have to move to the new person. Or you use them this year, and then go about finding a person on your own. You never know what motivates someone to sell, it could be a health problem, who knows? I do agree that a person with six returns probably needs more than 2 weeks notice. I'd meet with the new people also, and give them chance. They will probably be anticipating a large influx of new clients, and could get your returns out on time.

Death&Taxes (talk|edits) said:

9 March 2007
And I do wonder if his engagement letter said anything about something like this.

Eaglewatcher (talk|edits) said:

10 March 2007
I spoke with a couple of cpas yesterday(not the one my prior cpa arranged in his letter).

After reviewing prior year returns and other records, I was ask by one of the cpa's why i was changing tax services. He said he wanted to make sure that I was not just a disgruntled client trying to find a preparer to take short cuts. I showed him the letter I received and he then apologized for questioning my intentions. At this point I took the opportunity to ask him if his firm had grown in other areas so much that he could no longer do tax work for established clients, how would he handle the situation.

He looked me in the eye and said he would do what it took THIS year to service his established clients. He thought it would be a good idea to send a letter to clients putting them on notice that delays in completing returns were possible this year and they should feel free to find other tax professionals, but he would fulfill his obligation THIS year. He felt notification before Jan 1 would have been the responsible way to back out of the prep business. Since clients were not notified before Jan 1, it is implied the service will be offered in his opinion.

I agree with this cpa, but still want to talk to a couple more tax prep firms before deciding who will do my work in future

CrowJD (talk|edits) said:

10 March 2007
Hmmm. I wonder how many people his prior cpa actually dropped.

Eaglewatcher (talk|edits) said:

10 March 2007
Dropped his complete tax practice(or so he told me in a conversation after receiving the letter)....I dont have a number

Kevinh5 (talk|edits) said:

10 March 2007
There could be other reasons he doesn't want to talk about - like family obligations that require him to be at home part of the day - maybe an elderly parent or a disabled child or a spouse going through chemotherapy with only a few months left to live. If given the choice between doing someone's taxes and earning $300 or being at home with a dying spouse, what choice would YOU make?

Actionbsns (talk|edits) said:

10 March 2007
Eaglewatcher, after going through a life threatening illness, I can tell you that your CPA may not be telling you everything for private reasons. None of my clients were aware at the time that there were any issues of concern. My assistant was instructed not to mention my illness and we just moved forward. I was lucky in that it was not a debilitating situation and we were able to move on with only a couple of little hiccups. Could be that your guy is not.

Deback (talk|edits) said:

March 10, 2007
This is my biggest fear--getting too sick to work or croaking at my desk during tax season. With no employees and one son who lives 106 miles from here, I worry about what will happen to all the pending and to-do files sitting here. No, my biggest fear is not being able to get out of bed or dying in bed during tax season. It could be weeks before anyone would find me. The sign on my door would say "closed", the door would be locked, and who knows how long it would take someone to call the police or when my son would take notice that I'm not answering his chat msgs in Yahoo Messenger.

Kevinh5 (talk|edits) said:

10 March 2007
Deb, will it matter if you had completed 1 more return?

Sandysea (talk|edits) said:

10 March 2007
WOW: this sounds serious Deb....I think there would be many who would call the police if they did not hear from you...at least I hope so for your sake :)

But as far as the tax returns go, if your clients found out you "DIED" then I don't think their return would be the most important thing, do you?

Bottom Line (talk|edits) said:

10 March 2007
Depends upon the client Sandy. Some wouldn't care that you died. I like to think that mine would.


  • The following two questions by the same OP were posted as separate articles, and are being moved here so that the articles can be deleted:

Eaglewatcher (talk|edits) said:

March 14, 2007
I lost a rental property during hurricane. I had an involuntary sale in 2005 for the building(my tax preparer treated as such) He said I had 3 years to replace without penalty.(I was paid by insurance company and later sold the land where the building was located).

I started the replacement building 2006 year, bought land, site prep, building plans, etc. My question is can I deduct or start depreciation on 2006 expenses(not land) or do I have to wait until the building is complete/in use? Also will I be eligible for GO Zone deprecation because it is a replacement?

In an earlier thread I started [above], I mentioned I had lost my cpa because of his decision to stop tax work. I have engaged a new cpa, but because of the late date it will be quite awhile before he starts my return.

So I am really just curious about my new building for 2006.


Eaglewatcher (talk|edits) said:

March 8, 2007
I started construction on new rental property in 2006...not completed until later this year.

Any deduction for expenses this year?? or until it goes in use?

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