Complaints

• Initial Complaint

  08/12/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  This complaint details an incident where the subject accounting firm did not perform the work. We continually get invoices to be paid for work not done. Please see uploaded supporting document for details.

  Business response

  08/25/2024

  August 23, 2024
  
  To Whom It May Concern,
  
  I am writing in response to *********************** complaint with this Bureau, which is nothing more than a thinly disguised attempt to avoid paying bills currently due from ***** and ***********************, the ********************* Trust and the ****** Family Trust.
  We consider that the client has waived their privacy as regards their income taxes, by filing this complaint with the bureau.  Nevertheless, we are reluctant to share copies of the tax returns which were in fact done, but not completed.  They are available upon request but we will need written permission from the client to share them, as evidence of the work we did.
  
  Here is a timeline of events. 
  On February 15th and 16th, 2024,  ************** uploaded various documents into our firms secure portal called TaxDome.
  At this time, an engagement letter was also executed. 

  
  On March 3rd 2024, a team member, ***************************, CPA, began work on the three tax returns.  These include the ****** personal income tax returns, and two family trust income tax returns.   She raised some questions to the client.  The client responded and *** entered information into the tax returns.
  However, on March 22, 2024, the client sent additional information.  ********************* added that information to the 1040 return.
  Before the end of March, our Director of ************* *************************, CPA reviewed all three returns.  His review raised some important questions that required a close reading of the trust documents and conversation with the client to determine.  Many issues with reporting of trust income rest with the terms of the trust document.  At issue was:  (1)whether or not at least one of prior years of one of the trusts had been filed incorrectly;  and (2) whether or not it should be amended;  and (3) whether or not this would impact any of the 2023 tax returns.  
  It became apparent that the above important questions could not be researched, answered and resolved in a timely manner before the deadline.  It was further determined no money was due with any of these returns, making it a no-harm situation to file a brief extension of time to file.  However, we did recommend that the ****** pay a first quarter estimate for their personal income tax returns, which ********************* helped them calculate, giving them the exact amount and setting up a direct debit from their account.  The attached chat reflects that ********************* was very aware of and approving of the extensions of time to file, on April 16, 2024.   See also attached extension confirmations. We have redacted the ** numbers. *Note we were unable to upload all of them, just one due to the limitation on number of uploads.  However, three returns were legally extended.  We have uploaded one extension confirmation as a sample.

  
  Extensions are legal and available to all taxpayers in the event they cannot file complete and accurate returns by the due date.  This was the case here.  An extension is not an extension of time to pay, however.  ********************* had completed drafts of the tax returns, looking at that issue (was money due), and determined no taxes were due.  There was absolutely no harm to the ****** by extending.  Indeed, we believe it is our duty to extend, and in a clients best interest to do so, if we are unable to file a complete and accurate tax return.
  The tax deadline in ************* was Wednesday, April 17th,2024.  Many of our team members did take the following days off, as they had been working in many cases without a full day off, for weeks.  There is in fact a labor shortage in public accounting, and we were short by a person during this past season.  
  On April 17th, 2024, despite his awareness and approval of extensions, ********************* messaged us seeming to indicate that he was suddenly concerned by this situation.  
  In his complaints, ************** cites numerous phone conversations with ********************* and on Friday, April 19th, 2024,with ******************* of my firm.  ******************* did absolutely no work regarding these tax returns and states she has no recollection of speaking to either *** or ***************.  She certainly would not have been aware of the status of the returns, nor authorized to promise them to the client by a specific date, let alone a specific hour. *********************, CPA did have conversations with ********************* throughout the process.  She never informed him the tax returns were overlooked on the contrary, the record shows clearly that we were diligent and responsive, corresponding and interacting with the client,*********************,  regularly right up through April 16th.  It does appear there was slow response between the 17th and the 22nd of April, but this period encompassed a weekend and days off by various team members.
  I took a call from ***** and *********************** on Monday, April 22nd, 2024.  I explained to them that their returns were nearly done. That they had been legally and safely extended, with absolutely no penalty for doing so.  I explained that we had encountered some questions upon review, which does sometimes happen, and that these questions required research, including a close reading of the trust documents, to resolve, and that we had not had time to do that yet.  I requested but a few additional days to complete that task, and attempted to organize a conference call to include our Tax Director, *************************, CPA, later in the week, to discuss his findings and recommendations. ****************** holds a Masters Degree in Taxation, and is a tax attorney, ***************** Planner, ****************** Specialist (PFS)and a trust expert.  
  While ************** seemed amenable to this, at one point in the call, *********************** took the phone.  Im sorry to say she was yelling loudly and it was hard to understand her.  However it was clear she was very angry, and claiming that theyd never had to file an extension before. 
  I never said any tax return had to be amended, let alone all.  I did not and still do not know the answer to that question. It is impossible (and illegal) to amend tax returns beyond 3 years after the date they are filed. What I told them was that there was a question of possible amendment.  The way trusts file can vary year to year based on the character of the income and expenses in the trust,distributions and other factors.  We would never amend a return without first discussing it with the client.  However at this point in time, April 22nd,2024, we needed to do a couple of hours of research to determine what should be done, if anything.
  In the April 22, 2024 call, I offered repeatedly to set a phone or zoom meeting to discuss the issues, make decisions about filing, etc., within the week. The ****** were, unfortunately, unreasonable.  They informed me on that phone call that they were terminating the relationship.  I informed them, both verbally and in the attached letter, that since they would not allow us to complete our work, they would be responsible for paying us for the time we had run in preparing draft tax returns, preparing extensions,preparing estimates for 2024, initial research on the trust matter, and other time incurred. 
  Reagan & Company made a good faith effort to complete this work, but were halted by the client. We actually did most of the work. This complaint is invalid, and clearly an attempt to stop us from trying to collect our fees.  We are entitled to payment.  The ****** could have easily avoided this entire matter by have just a tiny bit of patience.  We would have had their issues resolved and everything completed in less than a week.
  Our engagement letter states the following about fees:
  you agree to pay all fees and expenses promptly. We accept credit cards. Late payments may be subject to interest.
  Our invoices reflect my teams time, multiplied by their hourly rates.  They are entirely reasonable for the work that we did. We have now begun charging interest.
  We did no harm to these taxpayers.  We were diligent, responsive and professionally responsible.  Their complaint to BBB is a desperate attempt to get us to drop our collection efforts.  They cite failure to deliver the product.  We were more than willing to deliver, but we were forbidden to do further work by this client, and we cannot deliver a wrong tax return.
  We respectfully request you dismiss this claim. 
  In the interest of trying to resolve this matter, we are willing to remove the interest charges provided our time charges are promptly paid.
  
  Sincerely,
  
  ******************************, President
  Reagan & Company, PC

  Customer response

  08/27/2024

   
  **mplaint: 22126479
  
  I am rejecting this response because:
  

  The series of events in this dispute led us to believe that a good faith effort was not made by Reagan and ** to do contracted services for tax preparation.  Therefore, we still do not feel that these charges are justified for payment.  We do not feel that Reagan and ** has been diligent, responsive and professionally responsible in their work (or apparent lack of work) for us.   Please see detailed attached statement in the filed named **** 1 - ***** rejection of Reagan BBB Response-Aug 27, 2024.doc"

  
  Sincerely,
  
  *********************

  Business response

  09/01/2024

  See attached.  Thank you.

  Customer response

  09/05/2024

   
  Complaint: 22126479
  
  I am rejecting this bill because:

  They chose to embark into a research project delving into past tax returns without notifying us or receiving our consent.  In addition, they held onto our tax documents for 2 months without doing any work on them and receiving any communication from them.  They promised that our taxes would be completed by 2 PM on April 22nd, which they were not.

  Please see attached letter.

  
  Sincerely,
  
  *********************

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩