First Accountant Just Fired Me - Is this normal?

First Accountant Just Fired Me - Is this normal?

Member since 2022 · 2 posts · 1 vote

I bought a STR in 2021 and bought one of those real estate tax education packages that included a referral to a CPA that was supposed to be an expert in the strategies used (For an upgraded package of $600). I engaged with the CPA and he said it was $500 for a consultation and that would be applied to my filing for the year. I have never filed taxes except for a basic income from my wife and I's jobs. I've never even itemized. I told the CPA in a 10 minute call that I only had a couple questions as I didn't really even know where to start but would have more questions when filing. I told him to assume I knew nothing and I wanted to learn.


We are late filling, this part is on me as I just didn't have all my expenses consolidated and told them I was fine with being late. Once I engaged they send over some things to fill out. I started to get questions back but they were always one offs with no context instead of telling me the outcomes they were looking for which wasted a ton of time. Once I understood what they were trying to achieve I could provide the right materials. I pointed this out to him when he chastised me for what I was sending him. Him and his assistant kept referencing more billable hours but at this point nothing had happened except this cycle of confusion of sending an excel file back and forth because there was no context on why he was asking the questions he was asking. At this point, Im starting to feel taken advantage of and I wasn't learning anything. So I press them to explain what my original payment included vs what was provided and clarity on his hourly rate. 

He sent back an email from earlier in the year that included these nuggets. I should have caught this earlier.

Every client's fee is based on their unique situation.
I base my fees for any service provided on the following factors:

1. The complexity in providing the service

2. The amount of time required to provide the service

3. The death retained by the client because of my expertise

So basically, he can just completely make up a number not based on billable hours but on how much he thinks he saved me. Vs what, I have no idea. I replied that I also do billable work and have never seen something so vague on outcomes and cost. His response was to say that he would not be doing my taxes. I have no problem paying to learn and get something I needed done, but at this point this started to seem pretty scummy. 

Is this normal? If not, how can I find a CPA who knows how to maximize real estate tax savings but is ethical? How screwed am I if I try to just do them myself over the next few weeks starting from scratch? Again, I don't mind paying someone for their expertise but I don't think I've ever felt more like I was putting cash in a garbage disposal. 

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  • Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Account Closed

    I have never heard of paying for a CPA referral before. I would find another accountant right away. Ask other local real estate investors in your area who they use. Referrals from other investors is the best way to find most professionals, vendors and contractors.

  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    3y

    Sounds very strange that you had to pay for a referral - 
    If you are working with a professional(Paid relationship), it should be assumed that you have access to his/her network.

    The question now is do you get any of the referral fees, fees that you paid the accountant thus far reimbursed since he is not living up to his end.

    You should consider filing as soon as possible as any interest / penalties are accrueing if there is any payment due with the return.

    best of luck

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    If you expected him to teach you how to do your own taxes, and he sells tax preparation service, it seems like not a good fit for either of you.

    Some who do their own taxes use TurboTax.

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