Flat Fee Refund if Service not complete?

[ehallo]

What is the name of your state (only U.S. law)? NJ

I paid an acct to file 3 yrs of tax returns and was charged a fee of 500.00 per yr/1500.00 total if I paid in advance. Verbal contract/no receipt.

Due to my own inability to submit financial data, accountant was unable to complete my tax returns. I have had many problems and have fallen very behind in my duties.

I have hired a new accountant in hopes of making new progress because I am so behind. I am embarrassed about working with other acct. due to personal relationship[friend of a friend] and feel more comfortable switching to a professional who lives nearby-a new start!

I asked for a refund but old acct. said I have used all funds with emails and contact and refers to my prepayment as a retainer now-saying I've used up all of the funds. He will not provide an invoice ; he states that he charges 250.00 per hr and that he has spent so much time on my work that it used up all 1500.00. But nothing was ever filed and it was mostly emails telling him that I still had not completed my financial work to provide him what he needed to prepare the returns.
Since no returns were ever filed and that's what the payment was for, am I entitled to a refund of any of my payemnt? Do I stand a chance in small claims court? Thanks

 

[tranquility]

If there was an engagement letter, that should describe the result under these circumstances. If there was not one, the accountant should give a time invoice for his claim on the money. Absent that, you have the right to file suit, where he will have to defend his billing amount.

 

[swalsh411]

OK let's summarize:

This accountant started working on your tax returns in good faith, expecting information from you to complete the returns. You failed to provide that information so he was unable to finish the work and now you expect a refund.

It is completely your fault that he was unable to finish the work.

 

[ehallo]

It is my fault for not providing info but he did not prepare any returns....

I am at fault for not providing my records and financial data, but other than speak with me, respond to email and copy my previous tax returns, no other work was performed. I don't expect a full refund. But I do feel entitled to a refund for some amount since I paid a flat fee charge for 3 years' tax returns. None were filed.
I paid for tax return preparation. Although it is my fault about the recordkeeping, etc., I don't feel that the work/time involved substantiates his keeping the full amount.

The work I paid him to do was put on hold. He never began any actual entry onto any tax form.
I should never have paid up front; I realize this now. I have made many mistakes. But I do not feel that he has earned the complete 1500.00 for the amount of work which was involved.
Thanks for your help.

 

[justalayman]

since you contracted him to prepare a return for a set amount, he is obligated to prepare a return for that amount. Just because you have continued to fail to supply the required information, it does not give you a right to unilaterally void the contract.

If you have no legal justification for voiding the contract, you have no right to do so and make a claim on the money. So, what is your legal justification for terminating the contract?

So, from the accountants point of view; when such a person takes on business, they often refuse to take other business due to having limited time. As such, if this accountant refused to accept work due to taking yours on, you could owe them for the loss of business if you want to make a claim on your money.

 

[swalsh411]

You have no idea whether or not he earned the money because he hasn't sent you a detailed accounting of his time. He owes you this much at least. If his time records substantiate the amount you have paid him, then you aren't due any refund. Regardless you shouldn't get a refund anyway because you have no justification for canceling the arrangement.

 

[tranquility]

I agree with all the previous posters, including the OP.

The "contract" will be the engagement letter. Verbal is problematical at best.