Let me start by saying, I own a business that provide services to clients, therefore I can attest…read morethat it is so hard to find a Professional that is efficient, trustworthy, accountable and most of all knowledgeable of their chosen Profession.
With that being said - I decided to let my old Accountant go last year- 2017 and hired Hyung C. IM, C.P.A.
After our meeting, I agreed on a price for his services that we discussed - to prepare my 2016 business and personal tax returns, my payroll and consultation for an amount greater that most Accountants would charge. The agreement is for the whole year that started on May 2017. I agreed to this because of my busy schedule running my own business and did not have time to look around because my taxes had past the tax filing deadline.
As always, he seemed like an honest, competent person - as with the impression you get after meeting a new person for the first time, and believing in what the person said he can do (Since he is a C.P.A. and my knowledge in Tax preparation and rules is limited), because after all - he is a C.P.A. and it's hard to doubt his knowledge. Nevertheless, I insisted to put our agreement in writing before we can move forward. Luckily, I insisted on such contract - please read on.
One of the services we agreed upon is for Hyung to handle my payroll. I signed the agreement on 04/30/2017 and he started working on my payroll on May 2017.
Since my tax returns were already late, we filed an extension and decided to file my taxes in October 2017. When, I visited him in his office to pick up my completed copies of my tax return - he had the audacity to say that he should charge me for preparing my taxes so late in October 2017, since he had so much work and prioritize my returns.
I shockingly stated to him that we signed a contract in May 2017 - that stated the work he just mentioned. . In addition, his terms were to charge me quarterly for the agreed upon services. I patiently told him that I paid the first 2 invoices that he sent me (advance for the taxes he will prepare in October 2017) even though he has not done any work for me except for the payroll. He smiled and said "I feel like I am not getting paid for preparing my taxes so late". I was speechless and finally after thinking it over and reading the contract we signed - he realized that I have a point. I had no words.
Fast forward to my 2016 taxes he completed, I quickly glanced at the returns and were shocked to find out that I owe a tremendous amount of taxes. My business is an S Corporation, therefore the income of the business must be reported as my personal income (as an owner). I asked "why do I owe this much ($16,000 to be exact for personal, and over $3,000 for business state tax) where my previous returns were not that high?" which were still high in my opinion, I explained. It is why I fired my old Accountant and sought him out. He replied" I worked based on the information you gave me".
Nevertheless, since the taxes were already late (October 2017), I decided to send it but not pay. His explanations did not make sense to me.
This year- 2018, I sought out another C.P.A. and hired him to file my tax returns. I believe that things happens for a reason. The result - based on my business expenses, income, bank statement and deposits(literally the same information that I gave Hyung the previous year) with slight changes in the business income(not much because I no longer accept new clients) - I was happy and satisfied to find out that I paid my taxes obligation and no longer owe Uncle Sam. I decided to have my new Accountant review my 2016 return that Hyung worked on. The result - Hyung C IM, did not really review the information I gave him. He listed the revenue I collected as my business income without deducting the expenses. In short - he took on too much work (in my opinion - because this is a mistake that a C.P.A. would not make - giving him the benefit of the doubt). Therefore, instead of owing the IRS $16,000 - the I.R.S. owes me $39. As for the State, I still owe $150 but this is a relief compare to over $3,000 that I am supposed to underpay, based on Hyung's work. I submitted the amended returns for the 2016 taxes right away.
I immediately sent Hyung an email on 04/02/2018 letting him know that I will not renew our contract because of this mishap. Below is his email reply...
"Hello,
I am sorry to lose you.
If we had provided you with the full bookkeeping service, we could have served you much better.
Anyway, I respect your decision to move the accounting service.
One thing, do you want us to finish the payroll service for the first quarter or do we stop our service as of today?
Even though we provide our payroll service for the first quarter in April, we will charge you for our service up to March 31, 2018.
Please let me know.
Please make sure you send email to my address HYUNGBUSINESS@YAHOO.COM. John H. Im, C.P.A.
Tel: 847-699-9191 Fax: 847-699-8911.
Can you belie
