Should I fire my CPA?
QUESTION: Is $2684.25 a reasonable price for CPA to file personal Federal and State tax returns which included 3 sole-member LLCs, all used for operating multifamily REI properties?
BACKGROUND: Last year, my wife and I decided to go with a recommended CPA. Since we started our REI business and we're starting to own more property, we thought having someone a tier or two higher than H&R Block would be a good idea.
So we had them file our taxes for the previous year in which I was the only one working, wife is home with kids, and we hadn’t bought any real estate or formed any LLCs. Just a simple return. Something we could have done on turbo tax for $39.99 or paid $229 to H&R Block to do (both of which we have done previously).
Before we went with this CPA, they were very transparent about being on the higher end of services. Well, the CPA did get us a larger than usual return, but also sent a bill for $900. I guess my wife and I were thinking higher end might have been $500-600 or so we were a little shocked it was so high for just a simple return.
From that point on, we asked that they let us know upfront about how much services would be so we can better budget for them. I specifically asked how much will the bill would be this year given that we formed an operating LLC and two LLCs for banking purposes for the two multifamily properties we bought in 2019. On three separate occasions, we were told it would not be more than $2000 total.
Side note: Throughout the year, I emailed a couple of questions, which I was told (after receiving a $575 bill) that each question required a couple hours of research and work to get a “detailed and factual” email response back to me. After that bill, I pleaded that they inform us of what the cost of services would be for any work they would need to do and to let us know BEFORE so we could choose if we wanted to proceed or not. Then, I again getting worried asked about filing tax returns and asked if they would still be $2000 or less, and was led to believe that “yes, that about what’ll be”.
Well, we got a bill for $2684.25 and my wife said we are moving on from this CPA and finding someone else who “won’t charge us $575 to answer a couple of email questions”. To be frank, I agree with here.
Alright BP community, sorry for the novel, but are we being ridiculous? Is this a typical cost for these services? Any feedback would be greatly appreciated!!