My accountant is late with my return!!

[bigbadboss101]

Met up with him on the 14th and he said he would mail out the return etc on the 16th. Five days later I didn't get anything so I phoned him. He said they have been swamped and will get it out ASAP.

Monday I got the return in my email. When I checked I found they didn't include my earnings during the second half of the year. I was an employee for the first 6 months, and a contractor the 2nd half. The return said I would get $5xxx.xx as refund. When I met him he said I should anticipate paying just under $20g for the year. A college of mine is paying $10g less (with some very creative accounting which I would not do).
I phoned him to let him know of their mistakes. As far as I know he lets one of his people do some of the returns. So buddy asks me 'you don't have any expenses huh?' and I told him I had a week earlier sent him an Excel spreadsheet with ALL the expenses, receipts and all.

It's been four days since our phone call and the return is 11 days later than he promised. Emailed him a few times since Monday the 23rd and now answers. Will phone and lay down the hammer Saturday. Deadline for return is Apr. 30th. I guess I will be finding another accountant for next year.

FYI I have been doing my taxes before but decided for this year will go with accountant and see how he can help me save taxes. Buddy did not suggest anything that can lighten the tax load. Instead he tells me I cannot write off much of this and much of that. He said probably 10% of my home utilities/maintenance, car insurance, laptop etc.

Anyways, not impressed.

[Schwa]

Name of the accountant/firm so we may avoid?

[Lex350]

Originally posted by bigbadboss101
Met up with him on the 14th and he said he would mail out the return etc on the 16th. Five days later I didn't get anything so I phoned him. He said they have been swamped and will get it out ASAP.

Monday I got the return in my email. When I checked I found they didn't include my earnings during the second half of the year. I was an employee for the first 6 months, and a contractor the 2nd half. The return said I would get $5xxx.xx as refund. When I met him he said I should anticipate paying just under $20g for the year. A college of mine is paying $10g less (with some very creative accounting which I would not do).
I phoned him to let him know of their mistakes. As far as I know he lets one of his people do some of the returns. So buddy asks me 'you don't have any expenses huh?' and I told him I had a week earlier sent him an Excel spreadsheet with ALL the expenses, receipts and all.

It's been four days since our phone call and the return is 11 days later than he promised. Emailed him a few times since Monday the 23rd and now answers. Will phone and lay down the hammer Saturday. Deadline for return is Apr. 30th. I guess I will be finding another accountant for next year.

FYI I have been doing my taxes before but decided for this year will go with accountant and see how he can help me save taxes. Buddy did not suggest anything that can lighten the tax load. Instead he tells me I cannot write off much of this and much of that. He said probably 10% of my home utilities/maintenance, car insurance, laptop etc.

Anyways, not impressed.

you can't just pick an accountant out of thin air...an accountant is a relationship with someone you know and trust.

[ken-gsr]

and what were you doing when you did your own taxes - did you write off everything (car, laptop, utilities, etc.)? I thought you could only write off 10% of that?

[bigbadboss101]

When I did my own I wasn't on contract. Now I am living in a different city.

[joyridder]

that is not very professional at all, but as long as its "received" by midnight your ok.....

[Mixalot27]

Originally posted by ken-gsr
and what were you doing when you did your own taxes - did you write off everything (car, laptop, utilities, etc.)? I thought you could only write off 10% of that?

I'm not an accountant or anything so you might want to double check this. But IIRC you can write off what ever portion of your expenses related to business. For example if you have a 1500sq/ft house in which you have a 300sq/ft office used for business, then you could write off 20% of your home utilities. Or if you lease a vehicle and drive it 20 000 km, 10 000 for pleasure and 10 000 for work, then you could write off 50% of the costs associated with that car.
If you have a laptop that you only use for work you should be able to write it all off I think. But once again I'm not sure, this is just what I remember from 3 years ago or so when I had my own business.

[Schwa]

Yup. You can write off any percentage you want, except for the depreciation on your vehicle, which I believe is capped at 30% and then 15% for years after that.

It of course, has to be reasonable. I mean, if you're grossing 10K, you shouldn't write off 8K in expenses.

About the comment regarding pulling an accountant out of thin air. How do you first find an accountant then?

[bigbadboss101]

Friend of mine told me about him. He had good experience. It's a vicious circle, can't get trust and such unless you have experience with that person. Chicken and egg scenario.

[bigbadboss101]

Ok, got my return back but I don't understand.
My tax payment is just under $20g. He said that needs to be paid by Apr. 30. Then later in the note he said I need to make installments of $10g, 10g, and 5g for tax 2007. Essentially my 2006 due is just under $20g, and for tax 2007 by end of year I would need to pay another $20g, and by March 2008 anothe $5g. Then after tax return I will either pay more, or get some back

What I don't like is my colleagues, all make within 15% of me. One is paying $4g of tax, and another $10g, versus my $18g. Either their accountants were good at writing off stuff or my accountant decided to not expense anything.

[calgarycoffee]

so.....who knows of a good accountant...who does tax, on time, and correctly?????? pm me please....as I am tired of supporting Harper and his smoke screen policies.

[Mixalot27]

Originally posted by bigbadboss101
Ok, got my return back but I don't understand.
My tax payment is just under $20g. He said that needs to be paid by Apr. 30. Then later in the note he said I need to make installments of $10g, 10g, and 5g for tax 2007. Essentially my 2006 due is just under $20g, and for tax 2007 by end of year I would need to pay another $20g, and by March 2008 anothe $5g. Then after tax return I will either pay more, or get some back

This happened to me as well so I can kind of explain why to you. I don't know all the exact details but basically what happens is that if you end up owing over a certain amount in tax at the end of a year, than the next year you will have to pay your taxes in quarterly installments. Basically the government is no longer content in waiting till the end of the year to get their money. It is kind of similar to how regular employees get taxes taken off every paycheck instead of paying it all at the end of the year.

Originally posted by bigbadboss101
What I don't like is my colleagues, all make within 15% of me. One is paying $4g of tax, and another $10g, versus my $18g. Either their accountants were good at writing off stuff or my accountant decided to not expense anything.

Its tough to say why this would be without knowing all the particulars of your tax situations. Maybe they have more allowable expenses/deductions than you. ie They spent more money than you to earn the same amount. Or maybe like you say, they have a better accountant. Even though you have already filed and payed your taxes, doesn't mean its set in stone. I'm pretty sure you still send in an amendment if you find out later that you paid more than you should have. And then you will get the money back. So if your so distrustful of your accountant maybe you should consider getting a second opinion from one of your friend's accountants. 20g's isn't exactly peanuts so it might be worth your while.

[MikeHL]

Are you talking about total taxes? Because they might just have more tax with held during the year....

Also if they have kids they can write off child care expenses.

Also if their spouse is making nothing and going to school she/he can transfer all of their personal and tuition credits to them.

How about RRSP's? They might just have bought RRSP's and you bought none.

Do they run a business from home? If so are they taking a loss on it?

Just some ideas out there, like stated before, each and every one's tax situation is different. It hard to compare you and your co-workers tax liabilities without giving exact details of each others situation.

Also it’s hard to say that they just might be cheating the system by writing off stuff and expensing random stuff. Just keep in mind that CRA audit's you not in one year's time but in 2-3 years time, when you have "forgotten" about the receipts. In that time you will have to repay the penalties and interest and in the end the amount owing.

Just think of a CRA “Owning” x1000 worse then a beyond owning cause in the end the CRA will not only “own” you, but will “own” your money as well.

[teg_star]

what happens if they receive our tax return on MAY 1 or 2nd?

[Daxin]

Originally posted by teg_star
what happens if they receive our tax return on MAY 1 or 2nd?

If you owe money to the government, they tag on a 5% interest on what you owe. I believe its 1% every month after that. But if you owe nothing and are getting back, you shouldn't worry.

[Supa Dexta]

I've put it off as late as november before..ha.. they always seem to investigate it then though, I'm gonna do mine when I get home in th next couple weeks this yr,, ahead of the game..