After using TurboTax for many years, I decided to use a CPA for my personal income taxes this year because I needed a CPA for an S Corp I had started, and because I was trying to spend more time with my family. But the results were terrible, and I'm wondering what to do.
The CPA came highly recommend by my estate planning/tax attorney and is the senior member of his accounting firm. Based on my income, I am not high in his pecking order, so he gave my return to an associate with >10 years experience.
These are the errors I found in my review of the draft 1040:
1. Did not include 2011 refund that I credited toward 2012 taxes.
2. Reported recharacterization of Roth to traditional IRA as taxable income (1099-R reported correctly).
3. Failed to claim bonus depreciation on a >6000 lb heavy truck I purchased for my business.
4. Did not include my HSA or 529 contributions despite my giving him this info.
5. Did not account for capital loss from sale of business assets.
6. Incorrectedly completed Schedule SE based on net profits including depreciation, instead of K-1 SE income.
7. Did not include deduction for business computer that I had purchased.
The errors would have resulted in my paying >$8K additional taxes that I did not owe. He quoted a fee of $600 for my return (1040, A, B, C, D, E, K-1, 1099-MISC, 1099-INT, 1099-R, 4562, and a few others).
Has anyone seen such problems? The CPA himself is very knowledgeable and helpful despite his expensive hourly rate ($300/hr for consultation), and I found his advice to be worth it. Ideally I would like at least to retain him for my S Corp return. But what should I do about my personal return above?
Give him a chance to correct the errors?
Tell him to forget about 2012 1040, but keep him for the S corp and go back to TTax for my personal return?
Cut off the relationship entirely and find another CPA for personal and S corp?
Edited to correct tax preparation fee as $600.
Last edited by markfaix
on Thu Apr 04, 2013 12:43 pm, edited 1 time in total.