Where is My Tax Information? Seeking Answers After 8 Years

[koima]

We have a $500 accountant but have VERY complicated business taxes for my husband's business. She does both his business and our personal for that fee, and meets with him and his mom (they do the business together) quite a few times each year to get them done.

 

[trps]

Just FYI, if you are expecting a refund there is no penalty for filing late. The IRS will charge you late fees & penalties if you owe money, :grumpy: but do they pay you interest if they owe you money??? Noooooo! :cry:

But be forewarned that they WILL NOT pay beyond 5 years in back taxes. So you can't procrastinate for forever!

In '04 my Hubby got flagged for defaulting on student loans & our refund went to that loan. We filled out our '05, '06 & '07 taxes but never sent them in since we qualify for a refund. Hubby was told if he could save up the money to pay off the student loans, he could get a deal and get out cheaper. He was hoping to pay it off and then get our full IRS refunds but never really worked on getting that done! Last week we finally gave up & mailed in '05 & '06. The SS administration claims to have never received the application for my daughter's Social Security card, so we can't file '07 or '08 until we get her SS#. Actually, we haven't even calculated the '08 taxes yet. We have a new baby for the '09 taxes, hopefully we'll have his SS# in plenty of time to get back on track & mail the '09 taxes in the right tax year.

I think you get a penalty for not filling even if they owe you. You need to file regardless if you owe money you will be charged interest but not the fee if you at least file. So your refund will be taken to pay your husbands student loans and they will take extra for late filing fees????

 

[pcchefjane]

I just looked up the exact amount from last year -- $475.Nothing should be that complicated --- basic PC (not a big earner -- show a loss after practice food and mileage . . . ), home owner (nothing bought or sold recently), 3 kids. Is your $95 with a CPA? How do you give them the PC info? -- Maybe I should "shop around".btw They called this morning, the taxes are done. I will pick them up this evening when DH gets home from work and mail them first thing tomorrow. -- still think the lady that answers the phone should have a log that she can look that tells her what stage everyones return is at. Still think a month is too long to prepare what I gave them.

For that much they don't even file them electronically for you? You are being gyped big time. H&R Block online cost me $19.95! Any others will do it for much cheaper as well!

 

[wadesgirl]

My dad use to do mine on TT but I couldn't ever figure it out. Last year when I had my PC business I went to a CPA who charged $95. This year I changed to my friend's FIL who charged just over $100. I would rather pay to have someone else do it than try to figure it out myself.

 

[cookingwith_tara]

I can't believe you are paying over $100 for someone to do your taxes. Our accountant charges us $95 every year accept this year b/c I had to do a different form showing changing from one ds company to another. But even that was only $125 total. It's unreal to think others are paying so much when there are so many of us who get it done for WAY less. Definitely shop around for next year!

 

[raebates]

One thing to keep in mind is that taxes vary from state to state. Plus, "reasonable charges" vary from region to region, state to state, and even town to town. A difference of $95 to over $100 may not be that unusual. Some of the other amounts mentioned here seem outrageous to me, but that's me.And, wadesgirl, if paying someone to do your taxes saves you a day (or 2 or 73) of worry and stress, it's probably worth it.

 

[Chef Endora]

I use the Tax Cut program from H&R Block. Easy, inexpensive & they provide free help if audited. E-file is free.

They also have an offer for Free one year Carbonite-PC backup protection. My SIL has it & he highly recommends it, so I'm going to give it a whirl.

Now, back to my tax prep.

 

[pampchefsarah]

I think you get a penalty for not filling even if they owe you. You need to file regardless if you owe money you will be charged interest but not the fee if you at least file. So your refund will be taken to pay your husbands student loans and they will take extra for late filing fees????

Not unless this is a new rule. I called the IRS once, several years ago, to find out the penalty for filing my taxes on which we received a refund, and was told, by the IRS agent "there is no penalty for filing late if you expect a refund."

I used to work for a tax accountant. He wasn't very ethical, but he was all about the logging. All I had to do was turn my chair around (I was the one who answered the phone) to see the status of any return.

 

[pcsharon1]

I've been using TaxSlayer.com for the last four years or so. We are military and don't itemize because we don't have medical bills or mortgage payments because we rent. But we do have a couple of IRA's, some savings interest, some mutual funds, his W2, my PC (usually just a bit of a profit if not a loss after all the deductions) and I did have tuition credit this year for a college class I took online. Because we are military TaxSlayer lets us e-file for free - usually $19.95 I think - for our Federal taxes. But I do it all myself online and I didn't pay a penny - and my refund has been spent for six weeks or so already! Something you may want to look into if you aren't doing anything to complicated.

 

[KitchenCPA]

Hi Everyone - I'm a newbie Pampered Chef consultant here... But I'm also a CPA (hence my sceen name...) I needed a little left brain to mix with the right brain.

Anyhow, I just finished up my tax season so I'm switching focus onto PC consulting for now but I couldn't help but respond to this thread.

I have SEVERAL clients who are PC consultants and I charge on average between $199 and $250 for their returns, which includes the state and electronic filing.

If you have a basic tax return that includes itemized deductions (mortgage interest, etc) and a Schedule C that reports your PC business....and you are paying over $400 you are likely being overcharged. I come from a top notch accounting background (KPMG) with a specialization in home based business accounting and taxes and while I'm able to keep my rates low, even I think $400 for that is extremely overpriced.

Anyhow, I didn't mean to turn this into a sales pitch - besides, tax season is pretty much over unless you've had your return extended, but if you're one of the people above who's paid a lot for tax prep and is not receiving your returns delivered on a silver platter by a handsome prince on a horse, then you need to shop around! Don't think just because the same guy has done them the last five or ten years you shouldn't switch - sometimes that is the BEST reason to switch.

Anyhow, wish me luck on my new Pampered Chef endeavor until it's time to hit the tax returns again!

If you have any accounting or tax questions regarding your PC business, I'd be happy to help - ask away - either here or if more personal, my email is [email protected]

-Jen
The KitchenCPA

 

[Aunticooks]

Jen:

Good luck with your new PC business! What a way to get away from the grind and mundane number crunching. Excellent choice. And thanks for the tax info. I wish my returns were delivered by a handsome prince on a horse, but the are delivered by my handsome husband sitting in the barcolounger doing turbo tax!!! LOL

 

[ughubug]

I paid $45...Did it myself with H&R Block online...It is SOOO easy to do, it walks you through every step even with your PC earnings and deductions. I always do it on both H&R and TurboTax to make sure the amounts line up and FILE....My return is in my bank account within 2 weeks!

 

[ButterflyVioletta]

One thing to keep in mind is that taxes vary from state to state. Plus, "reasonable charges" vary from region to region, state to state, and even town to town. A difference of $95 to over $100 may not be that unusual. Some of the other amounts mentioned here seem outrageous to me, but that's me.

And, wadesgirl, if paying someone to do your taxes saves you a day (or 2 or 73) of worry and stress, it's probably worth it.

I didn't see this thread yesterday because...I was preparing taxes! Rae your post puts it very well. There are HUGE geographical differences in fees and that makes sense because just like with wages, where you live makes a big difference on how much you make and what your cost of living is.

To me, I can't see how I could ever prepare a return for less than $150 for a few reasons:
1. I have an advanced degree and also take annual continuing professional education. In other words, I paid and continue to pay a lot to know as much as I can to address everyone's unique situation to the best of my ability

2. I use professional software which charges me a "license" fee per return I prepare. Just the same way Turbo Tax charges each purchaser of their software, your tax preparer has the same, if not more, costs.

3. As a sole proprietor I'm responsible for both the "company" share of payroll taxes and my own individual contribution. Obviously in order to get a paycheck, I have to make enough to cover this costs as well

4. Please remember that as a consultant you entered a new realm of tax return complexity. You now have a business tax return within a personal return. You also have a payroll tax return in there as well. It is not unusual to see preparation fees jump for a Schedule C and SE inclusion. These are like 3 separate tax returns. Plus I'm assuming you all write off Business Use of Home and track depreciation of your automobiles. Makes someone with just a W-2, some interest, kids and a house look like child's play.

5. Turbo tax is fine for basic use, but no matter how strong they build their database, it can only look at what you give it to ask questions. Nothing beats a live person looking at your tax situation like a great challenge and probing you with questions to find credits and deductions for you that you may not have considered. Not to mention tax planning. Not saying Turbo Tax is bad at all, but it is more limited than what most people get from their tax preparers.

Just something to consider, folks

 

[raebates]

Well said, Michelle. Since I don't write off business use of my home (my "office" is in the family room), that makes it much easier. Our taxes are just about as basic as you can get. I have friends who have much more complicated taxes. For them it just makes sense to have a professional handle things. I also take into consideration that many people are just not number people. Numbers make them crazy. Peace of mind is worth whatever you have to pay for it. I never begrudge a professional their fees. People are definitely entitled to make a living, and a good one, at that.

 

[KitchenCPA]

Just one last thought on the geographical area thing -I am based in Chicago, but have tax clients all over the country - I am well versed in multi-state tax law and am licensed to prepare them for any state. Don't let the fact you live in an area that has a higher billing rate for accountants in the area stop you from giving someone who lives outside of your state a call instead. Unless you have very specific complicated state tax issues, any well trained, qualified tax professional can handle whatever state is thrown at them. Gimme a call next year when tax time rolls around - I'll beat whatever price you paid last year by 25% (my website.... www.waterfordtax.com). Also, I've proven over and over again to my clients 95% of the time I can beat the "refund" amount they've come up with on Turbo Tax even after my fee. Turbo Tax is great for VERY basic returns, but if you've got a home based business - trust me, you're likely cheating yourself out of money. If you don't believe me, I am willing to take a look at your filed return and see if I can find you more hidden refund dollars...So onto much more colorful thoughts - I've booked several more cooking shows in May already and I am very excited! I'm thrilled with all the new summertime products too - This is all much more invigorating than being buried under 1040's!! What a nice break from the IRC code!

 

[gingertannery]

Yes.. taxes.. I signed up for the "free" turbotax... and it is not free. 99.95 plus tax -not free... I know we should pay for this service... but times have been tough since the hurricane hit....just wanted a break. For that price (plus some more).. I would rather pay some person to do this.. so I am saving your website kitchenCPA for next year... thanks for the info.. good luck with your business..

 

[Shawnna]

Wow...500 for taxes sounds extemely overpriced to me. I live in a rural area close to Tulsa. My tax lady does the taxes for people all over the country...she is also who everyone calls if they get audited. She stays on top of tax laws and all the information she can get every year...she is about to retire and I can't stand it. But, we have a farm, a restaurant, a catering business, my PC and another DS business. We also lease our land to the oil field for mineral rights. Our tax papers are extremely thick...tons of pages...and we never pay over 350.

 

[Kitchen Diva]

I'm mad about taxes, too, but the preparer has nothing to do with it.

:thumbup::thumbup::thumbup:

 

[Sheila]

I think you get a penalty for not filling even if they owe you. You need to file regardless if you owe money you will be charged interest but not the fee if you at least file. So your refund will be taken to pay your husbands student loans and they will take extra for late filing fees????

No, the IRS does not penalize you for filing late IF you are due a refund. But as I said, they will not pay if it's been more than 5 years. The only time that you have to pay them extra for filing late is if you owe them money, then they will charge you the late fee AND interest.