Should my CPA file and pay taxes on my behalf?

Question

Sorry for the stupid question. We got a notice from my CPA that our taxes are completed and have been filed. He sent an email saying that we owe about $1000 for our federal taxes and $2000 to NY. Question is, wouldn't it make more sense if he just used our bank account info to pay our taxes? Or is it normal for your CPA just to tell you what you owe, then we have to mail in the printed returns/checks ourselves?

Jeff S. · Answer

@John Paul Terragnoli the way he does it is my preferred method and the way my CPA does it.

He is highly paid to do your secretarial work but hey it is your money. I personally like to control that myself. CPA's come and go, sometimes die or sell the business and not always to someone that is good.

Linda Weygant · Answer

Some CPAs don't like to use their software to initiate the tax payments for their clients as they think it creates additional liability. Those preparers want to make sure the client is fully involved in the payment so nothing can be laid at the feet of the tax pro later.

It's a style choice.

Theresa Harris · Answer

I only used a person twice any years ago otherwise I do my own taxes. Both times, they submitted payment on my behalf, but they told me what I owed and I paid them before they filed.

Donna Stern · Answer

The CPA would need permission to have the tax software pay in your taxes. They usually use some third party bank and I don't like that idea.

I don't usually advise clients to do that. I send them the vouchers or tell them to pay it online. You should have control over your money not your CPA.

Thank you

Donna

Brandon Caynor · Answer

I've had it done both ways but prefer to pay it separately. I get points and cash back when I use my business credit card so I prefer going that route rather than my business checking account whenever I can. Personally, it makes organizing my transactions easier too when they all route through the same credit card.

Basit Siddiqi · Answer

it sounds weird that he mentioned to you completed and filed at the same time.
Normally they get completed and you have an opportunity to review the return before it gets filed.

My office normally gives clients the option to have the funds electronically debited with my software or I give clients a link to the IRS / state website to make the payment themselves.
I also provide vouchers just incase they choose to pay it themselves but not online.

One reason, CPA's may not prefer not to offer it through the website is that there can be errors.
For example, if you provide banking information but the CPA enters the banking information incorrectly.
Or they can forget the box authorizing the funds to be debiting resulting in no payments being taken out.
Now, the CPA may be liable to you for this error.

Best of luck!

John Paul Terragnoli · Answer

Wow, thank you for all the replies. Yes, it is my first time using this professional. Typically I get a refund, and when I provide my CPA with my account info, the refund is automatically sent there. We ended up just paying directly to the government, but I'll ask my CPA if that's something we can set up for my payments next year. Sounds like it can go either way, but I'd rather it be hands off.

Mohammed Rahman · Answer

Hey @John Paul Terragnoli - actually had this happen to me last week. My CPA had it setup where the payment would be drafted from my account directly without them having to play middleman without any reason.

Maybe it's your first time using this CPA office that's why they didn't set it up where it would be auto debited from your account directly, but I doubt it's any cause of concern.

Chris Picciurro · Answer

I would ask for a draft of the tax return before you sign it or pay. We just recorded a really good podcast that discussed how to pick the right tax professional. Please DM me if you want the link. Good luck!

Chris Davidson · Answer

@John Paul Terragnoli Does it matter? You can also go on line and submit a payment. I personally rather handle it myself so I know the timing. Plus they have enough other stuff to do it take like 3 mins to submit a payment.

Cheers.

Should my CPA file and pay taxes on my behalf?

Should my CPA file and pay taxes on my behalf?

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