BWTP P.C.

Initial Business Response /* (1000, 5, 2015/07/17) */
Ms. [redacted] signed an engagement letter on March 26, 2015 engaging BWTP to complete her tax returns. She had three years for returns that need to be completed. On June 2, 2015 [redacted], the partner that is assigned to Ms. [redacted]'s...

account, emailed her to give her some answers she had call and asked [redacted], our client development manager about. Our firm billing is based on time and we have billing rates across the board depending on the level of expertise the person has that is working on the account. [redacted] stated in the email that our billing is based on time. All three years of tax returns were worked on throughout the time period as to allow us to go back and forth to compare and make sure we had all information. There for as far as providing detail per year it was difficult. However we can provide and did provide a print out of the time that was spent on the engagement. She also stated in this email that the returns are ready for pick up and a payment of 950.00 is due at the time of pick up. The firm had placed Ms. [redacted] on COD due to payment history in the past.
Ms. [redacted] replied on June 2, 2015 with Thank you for your time and efforts and that she would call shortly with her credit card number. She also sent the address for the returns to be sent to.
On June 5, 2015, Ms. [redacted] emailed [redacted] with addition questions.
She stated she had asked numerous times if the tax returns were to be filed electronically but then received everything in the mail in paper form.
She stated that the packet had three pages of signatures pages she had to sign and send back to BWTP.
She also stated that she had asked twice for an invoice and that she got the run around. Stated she was told as in the past billing is done by time spent and she totally understands. She stated she received a word document billing statement with a blanket total. She was then told that if she was to pay with a credit card she would have to pay a convenience fee.
She stated that she expected in the packet an itemized statement and has not received it.
She stated that the fees are deductible for each previous year's charges. She stated she will cancel her very expensive credit card payment.
On June 8 [redacted] responded to the above questions to Ms. [redacted] as stated below.
First, we have filed electronically in the past. Some of her delinquent returns are no longer about to be electronically filed. In order to minimize any confusion, [redacted] determined that it would be easier to paper file all of her returns as once. That was why everything was mailed to her.
Second, [redacted] provided a response to her billing inquiry. Because she was behind on her filing, we prepared 2012, 2013, and 2014 income tax returns simultaneously. In the past she may have received bills for the trust return separate from her individual. That was no longer the case. BWTP only prepared her individual income tax returns and she was billed for all three years that we prepared and sent to her in the mail.
Third, tax preparation fees are deductible as an itemized deduction in the year they are paid. Therefore, she would not see them on each return since she did not pay each year. In her case, she had no tax so any deduction she would have been entitled to would not lesson her tax. Her taxes cannot go below zero. [redacted] concluded with please let me know if you have any other questions or concerns.
On June 8, 2015 Ms. [redacted] once again emailed [redacted]. She stated that was not happy that [redacted] sent her email to [redacted] She once again went through why she was not happy.
Ms. [redacted] did dispute her credit card bill. We send copies of all correspondence to the merchant showing the services were received along with the detail of the time, not by year but for the job that we were engaged to do by Ms. [redacted] which was to prepare three years of individual income tax returns. This same detail was sent to her as well. The merchant services reviewed the case and determined we were entitled to the payment.
The actual time incurred for the preparation of the three years of income tax returns was $1058.10 of which she was billed $850.00. We also wrote off $237.16 for the preparation of her 2011 income tax returns due to lack of payment. For the preparation of her 2011 income tax return the invoice was 515.00 for one year of which she paid $277.84. The preparation of the three tax returns that she was billing $850.00 for is an average of 283.33 per year much less then what was billed for 2011.
As far as the convenience fee for using a credit card we do charge our clients a 2.5% fee to pay with a credit card which she was told on the phone as she gave us her information for the credit card.
I have copies of all email correspondeces with Ms. [redacted] as well as all information that was sent to merchant services. I have the detail of time that was sent to her, again not by year but in total. I will also send that again today via certified mail. If you would like an copies of this information please feel free to contact me. Thank you for your time and if I can provide or answer any additional questions please feel free to contact me.
[redacted]
Firm Administrator
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