ComplaintsforKMA, S.C.

• Initial Complaint

  05/15/2024

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  Since November 2023, *** waited in good faith to resolve a billing dispute with KMA ********************** in *******, **. They did my 2021 individual tax return and charged $1200. For my 2022 tax return they charged $1900. That was an exorbitant surprise fees increase of $700, or a 58% jump in fees, and I questioned this strange increase. In October 2023, I picked up my tax return and was given an invoice, which was paid in full, for $1900. It was vague and displayed no details about billable activity. I had to ask for a detailed time and expense invoice. I had specific questions about their work activity and asked that any communications be put in writing My KMA tax preparer wanted to talk by telephone. Since November 6, 2023, Ive sent KMA several emails regarding written answers to my questions. All I get are boilerplate sounding responses posing as legitimate answers. On January 10, 2024, I got an email from my KMA tax preparer implying she wanted to resolve this matter. She asked me to pay them $1900.00 and they would give me a $700 credit. Why should I pay them twice? I already paid them in November, 2023. I responded to KMAs January 10, 2024 implied $700 offer to resolve this matter and was willing to accept it. The last communication I received from them was January 16, 2024. My KMA tax preparer sent me an email that implied any further communications would come from their corporate Attorney, ***********************. Its now May 15, 2024 and Ive received no further communications from them. The puzzle pieces for this picture dont fit together well. Why was I charged so much? As a senior citizen, I trusted my KMA tax preparer, but this experience gave me a worrisome view of their billing practices. Sincerely.*********************

  

  Business response

  05/29/2024

  After reviewing this case, we have authorized a refund of $700 to the client. This refund check along with a cover letter is being mailed out today. We believe this should resolve the issue.

  Customer response

  06/01/2024

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  *********************
  

• Initial Complaint

  09/19/2023

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  KMA accountants have represented me with my income taxes for over 20 years. In 2021, I was divorced and in our divorce settlement we agreed to have KMA do our income taxes for 2022. KMA was to represent me and had a fiduciary responsibility to represent me as an individual. The company refused to have any communication with me or my financial advisors while they were preparing my taxes. They charged me four times more than they charged me in previous years. I do not believe they represented me well. I paid both the federal and state taxes and within six weeks I received money back from both the feds and the state. The entire time my X-husband was contacting me about the taxes......I did not respond. I called Kma to see what could be done about this situation only to find ********************* rude and he hung up on me. KMA was to represent me individually. Last month an email was sent to me from my X. It was wanting thanks for the accounting he did on my 2022 income and capital gains taxes. I don't know what to make of his involvement in my individual taxes and ***'s responsibility to me.

  

  Business response

  09/25/2023

  It is correct that ***********************************, and her ex-husband *******************************, have been clients of KMA for many years. In the past, they provided their tax information together and only one tax return was filed for them as "married filing joint". Our fees are based on the amount of time it takes to prepare a tax return, which is standard for our industry. In the year that a couple gets divorced, there is a significant amount more work that needs to be done. (1) There are now two tax returns instead of one; (2) Special attention needs to be paid to the divorce decree to ensure income is split between the two parties properly; and (3) In this particular case, they sold two rental properties and all income/expense/gain had to be split evenly between the two parties and reported properly on their individual tax returns. All of these factors put together means that all work had to be duplicated into two separate returns, and even if it was still a joint return the amount of time would have doubled due to the sale of the rental properties.

  Information to prepare each of their individual tax returns was required to come from both ********* and her ex-husband. The divorce decree specifically stated that ******* was to keep track of all of the rental property activity and that he was required to provide this information for tax preparation. If there were any questions regarding the rental properties and the related sales, those questions went directly to *******. All other communication regarding *********'s individual tax return went directly to her through phone calls and emails.

  Customer response

  09/25/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
  
  When KMA did my individual taxes and capital gains taxes, ******* and I each had our own closing statements the money was split at the closings therefore Kma did not have to do that process.  Divorce was final and we were filing individually.  I was filing individually and KMA obviously working with my ex-husband on the taxes, that should not have any bearing on my individual taxes.  I never gave permission for anyone to work on my taxes taxes except for KMA.  KMA's fiduciary responsibility was to me as an individual.  This company lacks individual attention and communication.  They refused to explain things the entire time and I do not believe that they had my best interest.  I don't know who actually did  my tax  preparation.   I think they allowed my ex-husband to do the accounting. Ex-husband actually sent a letter to me that said I should be thanking him for the accounting he did on my individual taxes and my capital gains taxes.   They have never explained why after paying almost $80,000 in taxes (both state and feds) that I had within six weeks a refund from both (state and feds).   I feel this is because they did not take the time to expertly prepare my taxes.  I feel this is because they allowed an ex-husband to manipulate my individual taxes.  Never would I consent to that[.Please type your response here.]
  
  Regards,
  
  ***********************************

  

  Business response

  01/16/2024

  On November 21s,t the client met with our in-house counsel.  We decided that would be the best manner to accurately describe the tax law to her.  We explained that we had not breached our fiduciary duty to her, but had, in fact, obtained the information needed to prepare her returns in the manner ordered by the court in her divorce decree.  We described the ********* martial property laws and how they relate to the federal tax law.  We explained why due diligence required us to read her divorce decree.  We also explained the need to recapture depreciation on the sale of her rental properties and the fact that, contrary to her assertion, this information was not included on the closing statements done by the title company.  The title company has no access to any of this information, they only allocated the closing costs. She did not understand that closing costs are capitalized and falsely asserted that we had failed to deduct them.   We summed up why this whole process took significantly longer than her returns had in previous years when she had not sold rental properties or been divorced. 

  She continued to complain that the first person she contacted at our firm had not been able to explain the situation in a manner that she could understand.  She described it as mansplaining the process.  She took a lot of notes, but her questions showed that she still does not understand the situation. On the way out of our office she asserted that we had said that we breached our fiduciary duty to her by speaking to her ex-husband about her returns.  We again emphasized that we had not breached our fiduciary duty to her.  We did not speak to her ex-husband about her return but we did use the information that was provided pursuant to the court order. This was information that she did not have which is why the court ordered her ex-spouse to provide it.

  She complained that when she had called and yelled at our receptionist, she was transferred to the President of the company who was not able to calm her down and ended the phone call.  We informed her that her call had our receptionist in tears and that we would not allow anyone to treat our staff in the manner she had treated them.  We advised her that we would not accept any further engagements from her, i.e., we were none longer going to act as her accountants.  She told us that she had good records and did not need our help.

  Since we will no longer be doing business with each other, we do not believe that there is any need for mediation or arbitration.

• Initial Complaint

  03/21/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  Requested quarterly tax projection January 2022. Projection completed in timely fashion, but invoice (# VT804127) dated 1/29/2022 for $760 was above market rate (~$100). Inquired with *********************** ***, who said invoice number was based on time spent on the projection and brief follow-up questions. I asked for hourly rate and time units. Hourly rate was given. I asked again for time units (typically included on an invoice). Again, no time units were provided.Another unsatisfying nuance is that the *** said a follow-up question was time-consuming in that a tax code needed to be researched. Essentially, that means that I, as a singular consumer, was billed for continuing professional development time (i.e. a subsequent client with the same question would be answered in a much shorter time period due to *** already being refreshed on the answer).

  Customer response

  03/23/2022

  Hi *****,

   

  It's an itemized billing issue--I asked for an invoice to be sent with itemized time units multiplied by an hourly rate, and this was never accomplished by the *** firm. I had a phone conversation with ***********************, who was condescending, and she said that all her customers just pay whatever number she slaps on a piece of paper. I didn't think it was unreasonable to ask for itemized time units multiplied by an hourly rate.

   

  Thanks,
  ****

  

  Business response

  03/25/2022

  We sincerely apologize for the unsatisfactory experience that ******************** received. From what we gather, the services were acceptable but the billing is the issue. Our billing practices are to **** the client based on the time spent working on their account. We have a quality control process to ensure all work leaving our office is looked at by at least 2 people. The staff preparing the work **** at a rate of $150/hour and the partner bills at $310/hour. These rates are average for our industry. While we do not agree with all of the statement made, we are rectifying the situation by writing off the invoice in question. Our CEO, *********************, has authorized this and is sending a letter directly to ******************** with a statement showing his account balance with us is zero. 

  Customer response

  04/06/2022

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 

  The KMA firm did resolve the issue--you can change the status to satisfactorily resolved. Thanks so much for your help!

  
  Regards,
  
  ***************************

  
  

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