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Business Debt/CPA invoice
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Question
My wife and I owed a business where we used a CPA. The business ultimately closed. Several years pasted and we needed the help of our old CPA as the IRS was invoicing us personally for some business transactions. We called our CPA and asked for his help in resolving this. He went to work and published revised IRS forms. He said he really could help as the IRS was right. We did not feel this way so w found another CPA firm who resolved the IRS issue. After two months since we heard form our old CPA, we received an invoice for $1,000.00. We wrote a letter and said that this we would not pay as we had to search out other counsel and that we never signed anything authorising him to invoice this much. Basically - the old CPA worked on a verbal, not contractual.
What should we do as the old CPA is threatening to take us to collections?
Roger
Before the account is placed for collections I would try to resolve it and come u with a settlement with the CPA. Otherwise you will have to deal with a collection agency, and dispute the debt with them, if you are disputing the entire amount or even a portion of it.
It seems you did have the CPA do some work for you but then switched to someone else, did you let the first CPA know (in writing) that you were cancelling your services with them? You will need all the documentation you have regarding the invoices and account if the account goes to collection and/or small claims court.
Good luck!
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Answers by Expert:
Michelle Dunn
Expertise
As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience
I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.
Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.
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