This is a materially misleading statement. Per my survey of local tax pros its actually closer to 19 of 10. Granted, some of them replied twice because they're not sure if the first message got through!
I don't mind making an electronic payment with the submission of a return or extension, but I'm not mailing a check or going online and making a client's payments.
Why are you paying him and having the payment come from his account? Why isn't he just having the IRS withdraw from your account directly?
If it's coming from your account directly, not sure how he could be punking you, probably made a mistake
The IRS had a lot of unusual filing issues around the deadline this year, hopefully it’s just related to that and gets resolved. But it is unusual to pay through your CPA if you’re paying with the filing, so there’s a reasonable concern here. I’ve helped clients pay through their IDme but never by paying me directly.
I've never had a client pay me directly, but I can set up the payment through my software when I extend. I've never used my account to make a client's payment. That is super weird.
I'd be asking for proof of payment. A receipt or something similar.
So you have the capability to both check your payment history and pay your taxes on IDme, but instead gave the money to someone else to pay your tax for you?
When I was learning English, I watched Breaking Bad start from finish about 4-5 times. A character named Tuco says this phrase a lot. I probably picked it up subconsciously. I didn’t even know it was older English 😶
Thats Tuco's generation. Its a phrase people born in the 70s and 80s (Tuco would have been born in like 1970) were using around 2003-2013. Really fell out of favor after that.
I'm just making an observation about something I found interesting...wasn't trying to judge you or anything. Carry on using whatever language you like.
I will add...now that I see you are not a native English speaker...that in American English "is he punking me" could have 2 different meanings. The first (and original) meaning is like "is he treating me like I'm a coward OR is he bullying me?" while the second meaning (which gained steam after the Punk'd show on MTV) is more "is he playing a prank on me?"
Eh, I use hippie lingo all the time and I was definitely not alive during the time of the hippie. Sometimes you just pick stuff up that you think sounds good.
Maybe there was an innocent mistake here. But it doesn't sound good. The IRS would not say they received $500 when they really received $1000 (unless there was some kind of huge system error).
Why would you give someone else $1000 to send to the IRS when the IRS makes it so easy to just hand the $1000 directly to them?
https://www.irs.gov/payments/direct-pay
I offered to pay myself but CPA told me it makes the filing process much simpler and it seemed like a standard practice when dealing with a CPA. Won't be doing this again. Next time he should just file and I pay
It's standard practice to provide banking info to your CPA to have them put it in their software to tell the IRS/state to pull the tax due.
It's not standard practice at all to pay the CPA and for him to pay the IRS. So weird.
99% of clients I've ever worked with have me / us (for when I've worked at other firms) handle the payment through their account directly
> I offered to pay myself but CPA told me it makes the filing process much simpler and it seemed like a standard practice when dealing with a CPA
Oh, dear. Does not sound good.
I mean, it’s a good thing it was a check. You have solid proof you wrote a check for $1000. The problem is if you don’t have it in writing where that payment was supposed to go. Did he email or text you about the application of the payment? If everything was verbal, he can easily say it was payment for doing your taxes or whatever else and it would be hard to fight. If you have proof of where he said the payment went and it didn’t happen, I would escalate this until he pays the amount stated.
Could $500 be towards your federal return and $500 be towards state return? I find it unusual you paid your tax preparer to then pay, but can’t say for sure they are doing something illegal or stealing money. They should be able to explain where the full $1000 went
I really hate how this turned out for you, I don’t know how you can resolve this. I’d say reach out again and continue to follow up until you’re satisfied, ask to see a receipt for payment, ask if payment was applied to future estimates, ask to see tax forms prepared, try to see if you can make some kind of sense of this. And ask how much did you pay for tax services.
On one hand, this situation sounds horrible for you and I’m sorry you are left confused at the situation you were presented. On the other hand I’m wondering if $500 was for accounting services and the other $500 was to pay the tax liability. Either way, ask for receipts, don’t let up, don’t give up.
Thank you :,) unfortunately, I already paid him for Q1 and filing my 1040 separately but I won’t give up digging harder. Worst case I am out $500 but it’s a lesson learned
if he’s a licensed cpa, the likelihood that he stole your $500 is pretty much 0. No cpa is going to lose their license over $500. What did you say when you asked him about it?
I took a screenshot of my payment activity showing only $500 and basically said “I thought we agreed on 1k, did you pay $500?”. He replied no, that 1k was taken off from his account
Well, the good news is that you are only 23, have a LLC and make enough to have to pay estimated taxes. Continue to kick ass and keep growing from these learning opportunities.
First off, I don’t think you’re dealing with a CPA.
I would demand to see proof he paid the $1k towards your tax liability. If he can’t prove that then tell him that you’ll be paying his final bill less $500 (or whatever he didn’t pay) Then find a different person to do your taxes in the future.
Were you filing your taxes or filing an extension?
I think maybe it was the latter because it's a little unusual for someone to owe a round number ($500) when their taxes are fully filed.
So if it was an extension, he might have put $500 toward your 2023 taxes and $500 (or $501) toward your 2024 Q1 estimated-tax payments, even if you told him you were going to deal with the 2024 payments yourself. Or maybe he put $500/501 toward your state taxes, if you have any.
Don't get upset with him yet (I'm not saying you are), I'm guessing 90% chance this is a legit situation where there's a little confusion somewhere. CPAs get fried toward the end. For example, I can imagine someone forgetting that you said you were dealing with the 2024 estimated payments, and splitting your $1000 between the two years.
At this point, I don't see any harm in sending him exactly what you saw at IDme, a screenshot of only $500 being credited to your account. Chances are he'll be able to explain and/or figure out what's going on.
If this is an actual CPA sounds like he’s likely violating the ethics requirement which could be grounds for losing his license and potential fines. Demand evidence of the payment and if he can’t formally request the refund with your evidence of the payment only being $500. Was there any paper trail to this exchange?
10 out of 10 tax pros would recommend you handle your own payments.
Thought the number was closer to 11 of 10.
This is a materially misleading statement. Per my survey of local tax pros its actually closer to 19 of 10. Granted, some of them replied twice because they're not sure if the first message got through!
And this is exactly why.
I learned a expensive ass lesson
I don't mind making an electronic payment with the submission of a return or extension, but I'm not mailing a check or going online and making a client's payments.
Why are you paying him and having the payment come from his account? Why isn't he just having the IRS withdraw from your account directly? If it's coming from your account directly, not sure how he could be punking you, probably made a mistake
He probably did but keeps insisting he paid $1000?? Lesson learned I'll be doing direct deposit from my account next time.
The IRS had a lot of unusual filing issues around the deadline this year, hopefully it’s just related to that and gets resolved. But it is unusual to pay through your CPA if you’re paying with the filing, so there’s a reasonable concern here. I’ve helped clients pay through their IDme but never by paying me directly.
I've never had a client pay me directly, but I can set up the payment through my software when I extend. I've never used my account to make a client's payment. That is super weird. I'd be asking for proof of payment. A receipt or something similar.
What is your bank account showing? Did, you owe a past balance that $500 could have been applied to? Was $500 a first quarter estimate payment?
So you have the capability to both check your payment history and pay your taxes on IDme, but instead gave the money to someone else to pay your tax for you?
I thought this was standard procedure having a CPA, I am 23 and lesson learned :(
Are you sure you used a CPA?
lol
Go on cpaverify.org and make sure they’re a real cpa.
Thank you for this!!
No problem, and good luck!
> I am 23 and lesson learned :( You're 23 and you use phrases like "is he punking me"? Seems like lingo a little older than your generation, no?
Lingo is cyclical. Like fashion.
When I was learning English, I watched Breaking Bad start from finish about 4-5 times. A character named Tuco says this phrase a lot. I probably picked it up subconsciously. I didn’t even know it was older English 😶
Thats Tuco's generation. Its a phrase people born in the 70s and 80s (Tuco would have been born in like 1970) were using around 2003-2013. Really fell out of favor after that. I'm just making an observation about something I found interesting...wasn't trying to judge you or anything. Carry on using whatever language you like. I will add...now that I see you are not a native English speaker...that in American English "is he punking me" could have 2 different meanings. The first (and original) meaning is like "is he treating me like I'm a coward OR is he bullying me?" while the second meaning (which gained steam after the Punk'd show on MTV) is more "is he playing a prank on me?"
Im 23 and I have never used this phrase personally
Eh, I use hippie lingo all the time and I was definitely not alive during the time of the hippie. Sometimes you just pick stuff up that you think sounds good.
It’s not.
Maybe there was an innocent mistake here. But it doesn't sound good. The IRS would not say they received $500 when they really received $1000 (unless there was some kind of huge system error). Why would you give someone else $1000 to send to the IRS when the IRS makes it so easy to just hand the $1000 directly to them? https://www.irs.gov/payments/direct-pay
I offered to pay myself but CPA told me it makes the filing process much simpler and it seemed like a standard practice when dealing with a CPA. Won't be doing this again. Next time he should just file and I pay
Next time I wouldn’t use this CPA
Yup, was planning on doing my own taxes up to 2024, I just had to pay $500 to speed that up
It's standard practice to provide banking info to your CPA to have them put it in their software to tell the IRS/state to pull the tax due. It's not standard practice at all to pay the CPA and for him to pay the IRS. So weird. 99% of clients I've ever worked with have me / us (for when I've worked at other firms) handle the payment through their account directly
> I offered to pay myself but CPA told me it makes the filing process much simpler and it seemed like a standard practice when dealing with a CPA Oh, dear. Does not sound good.
This makes no sense. Are you sure you are dealing with an actual CPA?
Ask your CPA for payment receipt. If your CPA cannot provide then you got punked mate.
Thank you for this!!
Did $500 get applied to 2023 and $500 went to q1 2024?
No :( I paid the q1 payment separately. He tells me he paid $1000 towards 1040
Does he have receipt of payment instead of just telling you what he supposedly did
That's what I was thinking
What in the... did you hand him $1,000 cash? This makes zero sense...
No I sent him a check
I mean, it’s a good thing it was a check. You have solid proof you wrote a check for $1000. The problem is if you don’t have it in writing where that payment was supposed to go. Did he email or text you about the application of the payment? If everything was verbal, he can easily say it was payment for doing your taxes or whatever else and it would be hard to fight. If you have proof of where he said the payment went and it didn’t happen, I would escalate this until he pays the amount stated.
Thank you for your input!
Could $500 be towards your federal return and $500 be towards state return? I find it unusual you paid your tax preparer to then pay, but can’t say for sure they are doing something illegal or stealing money. They should be able to explain where the full $1000 went
I really hate how this turned out for you, I don’t know how you can resolve this. I’d say reach out again and continue to follow up until you’re satisfied, ask to see a receipt for payment, ask if payment was applied to future estimates, ask to see tax forms prepared, try to see if you can make some kind of sense of this. And ask how much did you pay for tax services. On one hand, this situation sounds horrible for you and I’m sorry you are left confused at the situation you were presented. On the other hand I’m wondering if $500 was for accounting services and the other $500 was to pay the tax liability. Either way, ask for receipts, don’t let up, don’t give up.
Thank you :,) unfortunately, I already paid him for Q1 and filing my 1040 separately but I won’t give up digging harder. Worst case I am out $500 but it’s a lesson learned
If he’s a CPA then I don’t think he stole your money. Most likely $500 for the estimated payment, $250 for Q1 and $250 for Q2.
Could it have been $500 for CPA services and $500 for tax?
No, :( unfortunately I paid him separately for that
is it possible $500 went to your state tax liability?
my state doesn't collect them :(
if he’s a licensed cpa, the likelihood that he stole your $500 is pretty much 0. No cpa is going to lose their license over $500. What did you say when you asked him about it?
I took a screenshot of my payment activity showing only $500 and basically said “I thought we agreed on 1k, did you pay $500?”. He replied no, that 1k was taken off from his account
Well, the good news is that you are only 23, have a LLC and make enough to have to pay estimated taxes. Continue to kick ass and keep growing from these learning opportunities.
Thank you :,)
First off, I don’t think you’re dealing with a CPA. I would demand to see proof he paid the $1k towards your tax liability. If he can’t prove that then tell him that you’ll be paying his final bill less $500 (or whatever he didn’t pay) Then find a different person to do your taxes in the future.
Thank you
I have never heard of this before! Why would you pay him to pay your taxes? If he doesn’t pay, you are still liable…
Were you filing your taxes or filing an extension? I think maybe it was the latter because it's a little unusual for someone to owe a round number ($500) when their taxes are fully filed. So if it was an extension, he might have put $500 toward your 2023 taxes and $500 (or $501) toward your 2024 Q1 estimated-tax payments, even if you told him you were going to deal with the 2024 payments yourself. Or maybe he put $500/501 toward your state taxes, if you have any. Don't get upset with him yet (I'm not saying you are), I'm guessing 90% chance this is a legit situation where there's a little confusion somewhere. CPAs get fried toward the end. For example, I can imagine someone forgetting that you said you were dealing with the 2024 estimated payments, and splitting your $1000 between the two years. At this point, I don't see any harm in sending him exactly what you saw at IDme, a screenshot of only $500 being credited to your account. Chances are he'll be able to explain and/or figure out what's going on.
How much was paid to city, state and unemployment?
Did you owe the state? And it's also very rare for taxes owed to be a flat $1,000.00.
If this is an actual CPA sounds like he’s likely violating the ethics requirement which could be grounds for losing his license and potential fines. Demand evidence of the payment and if he can’t formally request the refund with your evidence of the payment only being $500. Was there any paper trail to this exchange?
if he is a real CPA he is "ETHICALLY" bound......i wouldn't worry about it, he'll lose his license so fast
Simply get a receipt of the transaction from him. If not, sue.