Overcharged

[bill wehmeier]

In settling my mother's estate in Missouri, I had a CPA "friend" who works for a small accounting firm to file the Federal Estate Tax. Before I engaged him, I asked for an estimate as to the cost. His answer was "$1500 maybe up to $3000". This was said also in front of my sister. After the tax form was completed. He gave me a bill for $7000. I told him that it was "substantially over" his estimate. He responded that there was extra work involved. After I paid him I showed the completed form to another CPA and to an Estate Tax lawyer and asked them what they thought the cost should be. Both of their answers were in the $2000 to $3000 range. I haven't confronted my "friend" yet because I haven't received a closure letter from the IRS yet and I may need him in case there is some question on the return which he prepared.
Do I have any legal recourse? What would be the best way to handle this if he refuses to refund any of the charge?

 

[dmode101]

You might ask him for a itemized detailed summary of the time that he spent on the return. Use that and his usual hourly rate to compute what a fair bill should be. In general $7,000 sound a bit high. It depends on how complex and lengthy the return was, but unless it is extremely large or complex, in my experience, it should not take an knowledgable preparer more than 15-20 hours to complete.

 

[bill wehmeier]

Thank you very much for your prompt reply.
I really don't trust him now to be honest on his hours, I expect that he would "pad" them to get to the $7000. Do I have any legal grounds to make him refund a portion of the bill based on his original estimate and the statements of the other two professionals? If not, is my only recourse to file a complaint with the BBB? What about the state Attorny General's Office? Also, isn't there a governing body that CPA's are held responsible to
for ethical conduct which I could complain to? Perhaps a letter of complaint to the head of his firm?
It really irritates me that anyone, especially a "professional", gives me an estimate on something and then bills me at triple the estimate without advising me in advance.
How would you handle it if you were in my situation?

Thank you very much.

 

[dmode101]

Sounds like you have some good ideas. I suppose you have already paid him the full amount? Maybe just go back to him and be honest and say that you've done the research and that his fee is not justified.Start with asking for an itemization and tell him that you may take one of the actions that you mentioned. He really should have had some sort of firm agreement with you upfront, either a flat fee or hourly with detailed billing. Good luck.