Tax Law (Questions About Taxes)/paying my accountant

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Question
Hello and thank you for taking my question.

My accountant is asking for his fees to be paid before they electronically file the returns.  (I filed for an extension in April)

Is that a standard business practice?

Thank you

Answer
Very little is "standard" when it comes to business.

But there are many things that are reasonable. If the tax preparer filed the return and then was not paid, he would have little recourse other than litigation trying to collect. And the cost of litigation would quickly exceed the amount of the bill. Even if he did it as a small claims issue, he will have committed more time in filing and appearing than he spent on your tax return in the first place.

On the other hand, if you paid, and the accountant failed to file you have recourse:
  remind him to file it
  Compliant to the BBB
  Complaint to the Chamber of Commerce
  Complaint to the CPA licensing organization.
  Of course posting bad reviews has power
  and since he is in business you will always know where to find him to "encourage" him to fulfill on his commitment.

If you don't want to do business with someone that wants to be paid before he finalizes you could look for another preparer, but just make sure they will wait until after filing to attempt to collect.

Richard Fritzler

Tax Law (Questions About Taxes)

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Richard Fritzler

Expertise

Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.

Experience

I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

Organizations
National Small Business Owners Association.
Publications
Contributing author to "The Corporate Standard Newsletter".


Publications
Contributing author to "The Corporate Standard Newsletter".
Ezinearticles.com articlesbase.com

Education/Credentials
I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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