Do you guys use an accountant?

[meleana]

I used a CPA firm since retiring simply because I was sick of doing them myself. However, two years in a row I decided to check their work and found major errors that almost cost us a bigger refund. So this year I was going to go back to using Tax Act, but it so happens I am going in for spine surgery soon and I don’t think I will want to deal with it, nor do I have the energy to find another accountant.

Our Financial Planner thinks I should just let the CPA do them again and he offered to check the return for me before the accountant submits it.But the issue is sometimes the mistakes are not a matter of math but a matter of something left off. Crazy because I wrote detailed notes when I submit my paperwork to the accountant. Since I’ve always done our taxes I know exactly what the accountant needs. I’m so organized it should be a piece of cake for the accountant.

Plus I don’t think the accountant would send me a PDF version before it’s signed and submitted, but I’m not sure.

 

[Sunset]

I used a CPA firm since retiring simply because I was sick of doing them myself. However, two years in a row I decided to check their work and found major errors that almost cost us a bigger refund. So this year I was going to go back to using Tax Act, but it so happens I am going in for spine surgery soon and I don’t think I will want to deal with it, nor do I have the energy to find another accountant.

Our Financial Planner thinks I should just let the CPA do them again and he offered to check the return for me before the accountant submits it.But the issue is sometimes the mistakes are not a matter of math but a matter of something left off. Crazy because I wrote detailed notes when I submit my paperwork to the accountant. Since I’ve always done our taxes I know exactly what the accountant needs. I’m so organized it should be a piece of cake for the accountant.

Plus I don’t think the accountant would send me a PDF version before it’s signed and submitted, but I’m not sure.

After your spine surgery, beyond the first week, you will have a lot of home time and returns aren't due until April 15, plus you could just file for a delayed return for more months.

Still if you don't want to do it, then tell the CPA to send you a pdf of the finished return prior to sending it in.

Personally after the mistakes you mention, I would just do it myself, since there are months left.

The FP should already know a tax returns are done by software, so math is not an issue, but they don't know your circumstances, so won't know everything to look at.

 

[meleana]

After your spine surgery, beyond the first week, you will have a lot of home time and returns aren't due until April 15, plus you could just file for a delayed return for more months.

Still if you don't want to do it, then tell the CPA to send you a pdf of the finished return prior to sending it in.

Personally after the mistakes you mention, I would just do it myself, since there are months left.

The FP should already know a tax returns are done by software, so math is not an issue, but they don't know your circumstances, so won't know everything to look at.

I guess I’ll just see how I feel. Right now I have a lot of anxiety and doing taxes gives me anxiety and I don’t need a double whammy.

 

[Sunset]

I guess I’ll just see how I feel. Right now I have a lot of anxiety and doing taxes gives me anxiety and I don’t need a double whammy.

I understand, I was anxious before the operation , and then was amazed 2 days later I was walking (wearing a brace).

 

[meleana]

I understand, I was anxious before the operation , and then was amazed 2 days later I was walking (wearing a brace).

That’s great. I’m hoping for a good outcome. I’ve had a tough year, esieviskyy the past two months.

 

[socca]

... This year, I have to create Form 1065 for the first time for my LLC partnership and I'm struggling in how to do that. So, I will probably continue to use an accountant for awhile longer, even though it's getting expensive. Would like to move to Turbotax over the next few years.

Form 1065 is complex. You'll want a pro to prepare the 1065 for at least one year before trying it yourself. I've been preparing the 1065 for a multi-state partnership for many years now, but only after I tried to hire a pro for three consecutive years (a different one each time) and couldn't find one who performed to my satisfaction. I use H&R Block Business software (always comes bundled with H&R Block Premium, which I don't use). The HRB Biz software has a steep learning curve, but I can get the job done. Last time I checked, Intuit's Business software didn't support at least one of the flyover states the partnership needs to file in.

Tax season is already ramping up. Someone mentioned on the r/tax subreddit that some tax pros are already rejecting new clients. Good luck!

 

[seattledan]

That's the problem, doing your return in 1 hour is the mistake.

Depreciation is in all the major tax programs, but you must have breezed right past it in that 1 hour

You're actually making a lot of assumptions. The hour spent was pre-rental.

As for breezing through, I went over it multiple times when depreciation wasn't applied. I tried to get a hold of someone at Turbotax and couldn't so I submitted and had an accountant redo it.

Depreciation was applied the previous year but wasn't applied the subsequent year. It should have automatically been applied but it wasn't and I could not find how to apply it.

 

[Sunset]

You're actually making a lot of assumptions. The hour spent was pre-rental.

As for breezing through, I went over it multiple times when depreciation wasn't applied. I tried to get a hold of someone at Turbotax and couldn't so I submitted and had an accountant redo it.

Depreciation was applied the previous year but wasn't applied the subsequent year. It should have automatically been applied but it wasn't and I could not find how to apply it.

It's how I read your comment. Obviously I was wrong.

Maybe it was the version of TT you were using, as you would think the depreciation should have carried over to be updated as needed.

I stopped using TT because of how they try to extract more $$ from clients, and this is all based on the year they left out a form needed by many folks unless a person upgraded. Maybe they did that with depreciation that year in the version you were using

H&R has all the forms, but offers no help for filling forms that would be normal with only the high priced versions, unless one upgrades, but at least the forms are there and can still be filled in.

 

[Old Microbiologist]

Back before receiving only pensions as our income, we did. In general, this prevents an audit as the IRS doesn't like wasting time (time=money and all time at the IRS is a cost) when it is prepared by a CPA. They like low-hanging fruit that is profitable. This is why going after the real wealthy is rarely ever done as it takes a lot of time and resources with usually zero gain.

If you think back to the Obama days when they increased the overseas auditors by adding 800 new IRS agents, all lawyers, to go after the wealthy rich guys stashing the dough overseas, all they actually went after were old retirees (like us) and have brought in almost zero gain for enormous cost. I suspect all those agents have since been moved to other duties although we never hear about the downstream results of failed plans.

 

[DawgMan]

I have to use a CPA as well since I foolishly "got sold" some stinkers around a decade ago.

Some are in "zombie" status...not paying anything but I can't take the loss until the partnership formally dissolves.

Fortunately the most complex investments have a limited life but currently my returns run well over 100 pages.

Made me look... 114 pages! No wonder they (some) want to add 87K new IRS agents!

 

[Montecfo]

Made me look... 114 pages! No wonder they (some) want to add 87K new IRS agents!

They did it to add theoretical revenue without "raising taxes".

Will be interesting to see how it plays out.

 

[Beachcomber]

How many here use a CPA and still miss the April 15th deadline? (Always waiting for k-1's)

We too, have been using the same CPA firm for over 30 years.

Have multi-state business investment partnership, stock market portfolio, along with an individual business franchise. He charged $1765.00 for personal return in 2021 and was over 200 pages with attachments. My business return seems much easier and he charged more for that.

When I was younger and life was far less complicated, I had no problem doing them myself. Do you think today's software allows you to do a complicated return yourself? I'd hate to pay a penalty.

 

[Vacation4us]

My DH is loyal to his accountant. Before we got married I used TT, easy. My CPA sister uses TT because she says she has to think enough at work and TT is just data entry.

My DD is currently doing an internship at an accounting firm she plans to do her own taxes this year for the first time at 23.

 

[street]

No, I don't but I did when working. The cost was more than I was receiving in the benefit of having one. I do use H&R Block and the savings alone and the knowledge and help they have given me is as much as the accountant did.

 

[Echard]

By the way, three calls and emails to potential new accountants went unanswered.

 

[Koolau]

They did it to add theoretical revenue without "raising taxes".

Will be interesting to see how it plays out.

Heh, heh, "interesting" is only one word I would use but YMMV.

 

[DawgMan]

How many here use a CPA and still miss the April 15th deadline? (Always waiting for k-1's)

We too, have been using the same CPA firm for over 30 years.

Have multi-state business investment partnership, stock market portfolio, along with an individual business franchise. He charged $1765.00 for personal return in 2021 and was over 200 pages with attachments. My business return seems much easier and he charged more for that.

When I was younger and life was far less complicated, I had no problem doing them myself. Do you think today's software allows you to do a complicated return yourself? I'd hate to pay a penalty.

Yes, K1's seem to never be on time. I've made the decision to let my guy do 2022's return, which should be much simpler (and cheaper) and then hopefully have that as a template to do my own returns in the future. TBD

 

[RetMD21]

Back before receiving only pensions as our income, we did. In general, this prevents an audit as the IRS doesn't like wasting time (time=money and all time at the IRS is a cost) when it is prepared by a CPA. They like low-hanging fruit that is profitable. This is why going after the real wealthy is rarely ever done as it takes a lot of time and resources with usually zero gain.

If you think back to the Obama days when they increased the overseas auditors by adding 800 new IRS agents, all lawyers, to go after the wealthy rich guys stashing the dough overseas, all they actually went after were old retirees (like us) and have brought in almost zero gain for enormous cost. I suspect all those agents have since been moved to other duties although we never hear about the downstream results of failed plans.

Help me understand this GAO report showing that higher income payers are more likely to be audited. The < $25k returns were apparently mostly audited for the earned income credit https://www.gao.gov/products/gao-22-104960

 

[frank]

I use taxhawk and really like it. I do my own and then send it to tax service that I have used for years. he charges 85. for a return. if there is a big difference I start looking for differences. usually pretty darn close. I do like the idea of a point man signing off when it gets to the irs.

 

[socca]

... When I was younger and life was far less complicated, I had no problem doing them myself. Do you think today's software allows you to do a complicated return yourself? I'd hate to pay a penalty.

Yes, but it's a substantial investment of time & energy.

Accounting firms routinely file an extension-to-file request for complex returns or clients who supply tax information late. I did this last year for my dad's return and it was easy to do. I had no idea what my dad's 2021 tax liability was going to be so before 4/15 I just sent the IRS a huge payment for the worst-case 2021 tax due along with the extension request and later received a refund for the excess. There shouldn't be any need to pay a late-filing penalty.