Reply to New Tax Guy redid a bunch of things that affect investment convert values without asking won't budge

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[quote=Anonymous]We decided to switch to a new tax accountant this year after using a previous person for over 15 years. We provided him the previous year's returns and everything organized he even said repeatedly you guys are very organized this really helps keeps the costs low.

We have 3 rental properties and a primary home w/ home office and it has been reported that way for 10 years.

He initially said it would cost around 1-1200 and said he would continue off with the previous return.

A few weeks later he sends us back the return and we open it up. The bill says 2000 with a client initial client conference of 300 and a courtesy discount of 700 which makes the bill $1600.

I called him back a week a go  to ask what the extra charges were and he told me he had spend a lot of time to rework all of our investment properties because the valuations were too high when they converted to rentals. He went in and took the county assessed values on those years, which would be of course substantially lower than the what we previously had. Our previous tax person used the sales value because the homes were converted into rentals with 1-2 years. I told him that I wish you would have talked to me first before billing all these hours and also since it is a substantial change, but he said that's the way he works and if he did he would have to bill for those hours.

1) This obviously screws us when we sell in the future because the assessed values are about 150-50k less than the values our previous tax person making it a larger gain
2) Is this going to trigger an audit because he reworked basically all of our reported taxes for over 10 years (he claims it won't)
3) He claims he won't budge unless we get back dated appraisals because the real estate market was down and he would be lying  (I don't really agree with this because he isn't a real estate expert and he keeps saying "he makes no claims to be"). Of course 3 appraisals are going to cost well over $1500.
4) He started saying we may have to do amended returns to fix this etc... but he doesn't think it would be a problem.

He claims that the next years tax return would be around $1000 and the first year is always the most. Fine and good but he doesn't know that the friends that referred us to him have the almost identical tax situation, properties, paper work etc.. and they pay $650 a year.  I think our income is about double there's so maybe he charges us more?

What would you do? I still haven't responded because I am at a loss at what to do. I am now regretting the decision to switch and our previous tax person was always around $7-$800 but we had a few issues with reporting nanny taxes that we had finally rectified but we were a bit fed up it took 3 returns. I feel like this is going to really[/quote]

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