Tax Consulting Fees

[lcp676]

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

Can a CPA charge you for consulting when you were not aware you were going to be charged?

We used a CPA firm for our 2010/11 taxes. Late in 2012 I sent the CPA an email with a couple questions concerning a refinance. The CPA answered the email and that was the end of it.

This year I decided to use a much cheaper firm for my 2012 Taxes. I dont think the original CPA liked the fact that I changed firms. I received a bill for $165 for consulting. Do I have to pay this even though I was not aware I was being charged for answering an email? Had I known, I would have never sent asked them questions.

 

[TheGeekess]

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

Can a CPA charge you for consulting when you were not aware you were going to be charged?

We used a CPA firm for our 2010/11 taxes. Late in 2012 I sent the CPA an email with a couple questions concerning a refinance. The CPA answered the email and that was the end of it.

This year I decided to use a much cheaper firm for my 2012 Taxes. I dont think the original CPA liked the fact that I changed firms. I received a bill for $165 for consulting. Do I have to pay this even though I was not aware I was being charged for answering an email? Had I known, I would have never sent asked them questions.

You think the CPA should work for free?

 

[Silverplum]

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

Can a CPA charge you for consulting when you were not aware you were going to be charged?

We used a CPA firm for our 2010/11 taxes. Late in 2012 I sent the CPA an email with a couple questions concerning a refinance. The CPA answered the email and that was the end of it.

This year I decided to use a much cheaper firm for my 2012 Taxes. I dont think the original CPA liked the fact that I changed firms. I received a bill for $165 for consulting. Do I have to pay this even though I was not aware I was being charged for answering an email? Had I known, I would have never sent asked them questions.

Answering questions is work. I can't imagine why you thought it would be free.

 

[tranquility]

Everyone has his own business model. As a general rule, we would not charge for any questions answered contemporaneously over the phone. Educating our clients is part of what we do and the smarter our clients are, the more they value our services. But, that is us.

Many charge strictly by time in 6 minute increments. The clock starts when the phone call comes and/or the email/letter gets in front of the professional. In fact, that is the norm. You've got the norm.

But, even with our business model, if we have to do work to provide a written answer, the time is noted and added to the cost of the tax return next year. (We would not charge if the client left as it seems this CPA had done.) If there are projections or estimates of tax owed for certain scenarios, we would charge at the time the service is provided.

 

[LdiJ]

Everyone has his own business model. As a general rule, we would not charge for any questions answered contemporaneously over the phone. Educating our clients is part of what we do and the smarter our clients are, the more they value our services. But, that is us.

Many charge strictly by time in 6 minute increments. The clock starts when the phone call comes and/or the email/letter gets in front of the professional. In fact, that is the norm. You've got the norm.

But, even with our business model, if we have to do work to provide a written answer, the time is noted and added to the cost of the tax return next year. (We would not charge if the client left as it seems this CPA had done.) If there are projections or estimates of tax owed for certain scenarios, we would charge at the time the service is provided.

Our firm operates pretty much the way that yours does. We also answer basic questions over the phone for non-clients without charging them anything.

 

[tranquility]

We also answer basic questions over the phone for non-clients without charging them anything.

As do we. While part of it is just service to the community, we could also call it marketing if one would like.

 

[swalsh411]

How can you say you were not aware you were being charged to answer the email? Surely you were aware of an hourly rate.

 

[davew128]

How can you say you were not aware you were being charged to answer the email? Surely you were aware of an hourly rate.

I know of no tax professionals who openly display their hourly rate, even on invoices.

 

[tranquility]

I know of no tax professionals who openly display their hourly rate, even on invoices.

Part of the reason for us is it changes depending upon the amount of "work" required. If I'm writing up a tax-free exchange, my rate is higher than when I'm inputting a W-2. Sure, it's still just time. But, we consider one more expensive time than the other. (Although try to get more of the former than the latter.)

 

[HomeGuru]

Can I charge a fee for just reading this thread?