USA Accounting Fees Question

[Jane Lee]

Hi,
I just had an argument with the accountant over fees and was wondering what you guys think. Normally I pay $1500 per year to do my S Corp tax return but for my final year tax return the fee went up to $3000 with the reason being " disposition of assets and closing books" But I provided a lot of the data.
Is the final year tax return usually higher?

 

[kirby]

Does not matter if it was a final year tax return. The problem was that accountant at some point must have seen that there was going to be a lot of work and failed to alert you that therefore the fees would be higher. You have a part in this too as you were too trusting that they would warn you. I always say to treat CPA's and attorneys like auto repair guys and be sure to get written estimates before the work is done.

 

[ag_cpa]

Final Years are more work to complete. Need to calculate the Gain/Loss of sales of Assets from business and make it match the software after taking into account accumulated depreciation. The CPA was right to increase the fee, double maybe not but by at least 50%.

Plus as an S Corp final year, you will most likely show a big loss which will carry forward to your personal which helps you down the road.

 

[smallbushelp]

An accountant in public practice should always give you an engagement letter in advance of beginning any work that outlines the work that is going to be done, the responsibilities of the parties, and the estimated fees. Your accountant erred in not doing this. Yes, a final year tax return could require more work but to double the normal fee is excessive.