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dlperko

Junior Member
Being charged outrageous fees from a tax person that didn’t actually do or submit tax

I am asking or writing on behalf of my mother. I am her POA and this year I completed her taxes. Three times in the last decade, a tax preparer had completed and submitted on her behalf.

This year, I asked the tax preparer over the phone to file an extension. After verbally giving him the go ahead, I emailed him regarding his fee for the extension. I have his $100 dollar fee in writing. After learning of the $100 fee, I tried to tell him to hold off in the same email exchange.

Two weeks later his company wrote again asking for her SS income and other tax documents. I responded by saying I was doing her taxes and if I needed their assistance, I would let them know. In August, I heard from the tax guy again. In this exchange, he is claiming to have started two hours of prep work (without pertinent documents and without any sort of agreement or permission).

The company is now invoicing my mother over 800 dollars. He only had a verbal yes to filing an extension. Is my mother legally obligated to pay for services she/I never asked for.

In addition, in the previous years when he’s filed an extension and completed and submitted her taxes- he’s charged her $100 for the extension and $475 for completion and submitting. Thus, he’s doubled his fees without actually doing or sending in her taxes.

He also know I am her POA and I’ve told him to only contact me. He’s disregarding my requests to stop contacting her. At this point it’s starting to feel like elderly abuse given he’s going after the weaker party.

I would appreciate any responses as to how to proceed- whether I should just ignore his invoices. As of now, I feel like chancing him taking her to small claims court.
 
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xylene

Senior Member
Tell them, in writing, that there will be no payment as there was no services rendered and see how they respond.

As to contacting mom, you will need to tell mom not to answer the phone for any numbers she doens't know and to only let you open the mail.
 

dlperko

Junior Member
My question is- how do I proceed? Can he claim we had an oral agreement in small claims court? Can he charge for services I never agreed to or he never provided?

I have written him back telling him he didn’t provide services and that be never had my verbal or written permission to proceed with tax prep. He ignores me and just sends new invoices.
 
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xylene

Senior Member
You can't sue him in small claims to stop sending invoices.

Is he trying to sue you or your mom?
 

dlperko

Junior Member
I am not planning on taking him to small claims court.
I am afraid of him taking my mother to small claims for not paying.
Based on the info I’ve provided, can he legally charge her for services he never provided?
 

PayrollHRGuy

Senior Member
He can charge for whatever he wants. If he isn't paid he can sue you or your mother. If he sues you have a VERY good defense.


Are you in Mississippi? I ask because your subject line was Ms and you didn't include your state.
 

dlperko

Junior Member
He can charge for whatever he wants. If he isn't paid he can sue you or your mother. If he sues you have a VERY good defense.


Are you in Mississippi? I ask because your subject line was Ms and you didn't include your state.
No, I am in California. I couldn’t fix th Ms mistake. I apologize.

Thank you for your response. From what I’ve read, if he wants to claim we had an oral agreement and take me or my mom to small claims in CA, there is a two year statue of limitations. Would this be from the time I told him I’m doing her taxes, the date I told him to invoice me for the $100, or the date of his first invoice?
 

dlperko

Junior Member
You respond by saying he can charge whatever he wants. This confuses me as I didn’t give him permission to provide additional services.

I am a massage therapist. Without prior consent- can I invoice clients for services I THINK they need? Could I in turn invoice this tax person for my time and the stress he’s causing me?

In his code of ethics it states- “You will be informed of our billing rates and policies. You will be quoted a fixed fee for your tax return. This fixed fee will be adjusted if your return changes after your interview...”
 

Taxing Matters

Overtaxed Member
Based on the info I’ve provided, can he legally charge her for services he never provided?
He may charge for legal services never provided if you or your mother entered into a contract for those services but did not cooperate in providing the information needed for the tax preparer to do the returns. He is not owed anything if there was no contract. You say that there was no contract to do the returns, just the extension. So the issue in small claims court would start with whether the preparer could convince the judge that there was a contract. Without seeing the evidence both sides present, no one here could tell you how the judge would rule.
 

LdiJ

Senior Member
He may charge for legal services never provided if you or your mother entered into a contract for those services but did not cooperate in providing the information needed for the tax preparer to do the returns. He is not owed anything if there was no contract. You say that there was no contract to do the returns, just the extension. So the issue in small claims court would start with whether the preparer could convince the judge that there was a contract. Without seeing the evidence both sides present, no one here could tell you how the judge would rule.
I agree with this, but I will also add that the average tax professional will not attempt to charge for work they did not do, even if there was some sort of contract in place. Most of them are more honorable than that.

100.00 for an extension is interesting, at best. A claim that someone had done 2 hours worth of prep work, despite any tax documents is interesting, at best. This whole scenario is interesting at best.
 

dlperko

Junior Member
I agree with this, but I will also add that the average tax professional will not attempt to charge for work they did not do, even if there was some sort of contract in place. Most of them are more honorable than that.

100.00 for an extension is interesting, at best. A claim that someone had done 2 hours worth of prep work, despite any tax documents is interesting, at best. This whole scenario is interesting at best.
Thank you for your response, LdiJ and Taxing Matters! It's greatly appreciated!

I guess I have a follow up question- what constitutes a contract. I've read through my email exchange with him and I never ask him to do my mothers taxes; whereas, in regards to the extension, I specifically asked his fees for an extension and I gave him the okay. Is there an implied contract given he was doing the extension? Could that be his argument? What would be the reasoning for not cashing the check I have sent for the extension (more interest and fees)? If he's anticipating bringing her to SCC, might this be his reason for almost doubling her tax preparation fees this year?
 

LdiJ

Senior Member
Thank you for your response, LdiJ and Taxing Matters! It's greatly appreciated!

I guess I have a follow up question- what constitutes a contract. I've read through my email exchange with him and I never ask him to do my mothers taxes; whereas, in regards to the extension, I specifically asked his fees for an extension and I gave him the okay. Is there an implied contract given he was doing the extension? Could that be his argument? What would be the reasoning for not cashing the check I have sent for the extension (more interest and fees)? If he's anticipating bringing her to SCC, might this be his reason for almost doubling her tax preparation fees this year?
No, that is not an implied contract. Not by any means. You asked him the price of filing an extension and you informed his office that you were doing her tax return. I do not know what is the matter with the guy. You really should tell him that you are acting on your mother's behalf and if he contacts her again you are going to report him to the elder abuse agency in your area.
 

dlperko

Junior Member
No, that is not an implied contract. Not by any means. You asked him the price of filing an extension and you informed his office that you were doing her tax return. I do not know what is the matter with the guy. You really should tell him that you are acting on your mother's behalf and if he contacts her again you are going to report him to the elder abuse agency in your area.

I have asked repeatedly for them to stop invoicing her- and I did so again this morning informing them that I've provided my POA documents (in a previous email) to them and I documentation from her neurologist indicating reduced mental capacity. I stated in today's email that their invoicing her is manipulative and exploitative.

Once again, a sincere thank you!
 

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