I received this ridiculous email informing me of additional fees. They are charging extra for entering in W-2s and interest statements. Three activities were included, and they are counting each W-2 as a separate activity.
This was part of a tax prep/tax advising package I purchased for $3000…
Is this normal?
Here is the portion of that email:
—
“Under the terms of your package, the included returns assume up to three "activities." An activity is a component that requires distinct data entry and preparation time, such as a Schedule E rental door, a Schedule C business activity, a K-1, or an additional state return.
Your tax preparation team identified the following activity count:
Detail
2 K1s
3 W2s
1 Interest Statement
1 Brokerage Statement
2 Schedule E – Rental Doors
Total Activities in Your Return
[9]
Activities Included in Package
3
Billable Activities
[6]
The resulting additional fee is calculated as follows:
Extra Activities: [6]
Rate per Activity: $200
Total Additional Fee: $[1,200]”
Up-charges from a Tax Firm: is this normal?
byu/Kooky_Creme_3234 intax
Posted by Kooky_Creme_3234
9 Comments
It sounds like you purchased a specific package and didn’t read the fine print. Most don’t charge the same for each “activity” since some can be vastly more complicated than others
That said, the pricing seems steep depending on how intensive the rentals and K-1s are
I need to raise my rates…..
Seems like they’re trying to nickel and dime you, $3k is a fair quote for the tax situation you described.
Depends on what’s in the package.
I don’t think the itemized items are wholly unfair, but that is high. The W2s, 1099-INT, and 1099-B would be included for me.
You’re being scammed
Get a better CPA
Yes it’s normal especially if you gave them pig slop they had to shovel to get the numbers as close to accurate as possible. Then factor in the probably 100 calls and emails you likely sent asking for a status and the pressure to file by the first deadline. So without more context I have to assume you’re a clueless cheapskate and should just do your own taxes.
Unrelated to the question but what are rental doors?
3k is already on the higher end for such a return, assuming the schedule E activities aren’t rentals of a significant size that required a ton of work. Adding on $1,200 after the fact is just bad business.
Sounds like a scam company. even the way you describe it “purchased a package”