All Forum Posts by: Chinmay J.

Sounds like a tantrum and another person to add to my "Run Away! Run Away!" List. VA has nothing to do with the Feds. That's just raw speculation, paranoia, and scapegoating....a dangerous trait in a client. That the money was taken out later than you wanted is a minor issue unless it cost you money (penalties, etc.). I see no indication of that.

Forgot you had realtor income?  That'd be more serious if you gave her docs (1099's, list of expenses, etc.).  Not clear from the context - you mention that you mentioned it, but I cannot tell what material you gave her, if any.  

But your overall attitude (especially your response to Carl) & approach scream "fast to blame others" and "difficult person, not worth the money, next".

 I'm still not sure what you think the big mistakes were?

Most firms set the default date to pay as the due date- Every firm I've ever worked for has this as a default. People KNOW that date- but if you change it or pull earlier people are incredibly upset when it comes up earlier than they expected. 

I personally send my client the link to make the payment themselves for this purpose. It's kind of a damned if you do damned if you don't situation. This firm did the thing that most people prefer- paying on the due date and you're very unhappy about it. 

You mentioned you saw this on the documents they sent you- Did you ask them if it could be withdraw sooner and they told you this wasn't an option? Or was it not mentioned until after the return was filed?

The federal tax return is in no way waiting on the state. 

If they E-filed and submitted and it says it's pending then it's pending. 

Lots of things cause this- Often certain tax credits the IRS takes longer to process if they're refundable. 

You said that you had several other CPA's look at it who said the work was good- so I'm not sure how you feel they mishandled your account?

No, the IRS is not holding your refund waiting on Virginia. 

Likely the IRS is not processing your return because there is a matching issue or other discrepancy.  For example, I have a client whose IRS refund has been showing as "processing" for over a month.  When we looked into it, I determined that my client did not give me a form 1095A showing the health insurance advanced payment credit.  Despite me asking if he had such a form.

So the IRS is now waiting to process the refund so they can add in this credit and figure out the correct refund.  

Because of the pandemic, the IRS was neither working on this processing nor are they answering the phones.  It just is what it is.

Odds are good this is NOT your CPAs fault.  Could have been that you forgot a form.  Could be that there is some other reason.  But IRS Processing delays are not under the control of your CPA.

Also, $700 is not "Premium" fee.  It's fairly standard for a real estate investor / self employed person.

TLdr - you're freaking out and blaming your CPA and you really need to stop.

@Chinmay J.

How  and why did you chose this cpa firm? There are great CPAs in this BP forum who will help you understand the specifics of this situation. 
However, You are so typical of many investors and it is one of my pet peeves. Executing your “due diligence” after signing up. You have to ask your questions before you sign on the dotted line. For example, you like to get your work done before it is due-did you ask the CPAs you interviewed- what percentage of your clients file ahead of deadlines and how soon do they get their refunds? The cpa could of answered with a percentage or could have said we try to make sure our clients don’t overpay taxes during the year and can use that money all year and not wait for a refund. Maybe both answers or more answers. Neither one is right or wrong but you decide what fits your goals and expectations. Make sure you ask questions that are important to you as well as figuring out the CPAs knowledge and execution processes. However this is a learning process and BP forum posts will help you. It’s good to learn from your mistakes but great to learn from others mistakes. Thank you for sharing as your experience can help others.
Follow the CPAs on the forums you can get a good feel for them for free-@Michael Plaks, @Ashish Acharya, @Lance Lvovsky, @Elizabeth Cummings, among others. 

So you owe money to VA and they are setting it up to be paid on the last possible day? That may be the default of the accounting firm because normally people don't want to pay early. As for your federal taxes I have lived in a number of states (none of them VA) and never had the Feds wait for a state filing so I think the issue with your federal return delay may be different. You need to look into it and maybe call IRS. We filed prior to Apr 15 and got a refund already so I don't think there is a general delay. As for price that would not be a premium for us but it depends on the return. Good Luck. Maybe someone with Virginia experience will chime in

Looking for lenders who you've seen are willing to issue a HELOC (or loan) in 2nd position on an investment property. Most I've seen require 1st lien position on investment properties. Any advice or leads appreciated. Property is in VA.

Hey guys, I'm looking to purchase 2-3 single family homes out of state. Up to this point I've only owned my primary residences, but I've been able to save up about $150k that isn't doing much in the bank.

I still have a full time job and just looking to find properties that can meet a 5-10% return in good neighborhoods. I've only really been able to find the type of deals that can get me this outside my market of Las Vegas (at least for now even though things may look drastically different in a few months).

In thinking about your first renovation projects, how did you get comfortable determining the costs of rehabs? Especially for property outside your ability to go see it yourself, what ways can I improve my understanding of determining rehab costs?

Any help is much appreciated! You guys are awesome.