Hill Barth & King

August 6, 2015RevDex.comServing Western Pennsylvania [redacted] , [redacted] ***Re: Complaint ID [redacted] In response to the above mentioned complaint we submit Mr. R***'s response.At no time has Mr. R [redacted] held himself out as a CPA. He is an enrolled agent (EA) with... the IRS and has a Master's of Science in Taxation (MST).The client misstated or misunderstood some of the facts of our original discussion when they were brought as a client into HBK. At the time the client decided to utilize our services, there was a verbal agreement on pricing. He and his wife were given a proposal of what we believed services would cost based on prior year work, but also that prices were subject to change. The client was promised that they would be dealing directly with Mr. R [redacted] and not another advisor in the firm. The prices increased year over year not because of a change of firms, but because there was a dramatic change in the client's tax circumstances. No promises of specific tax savings were promised. The $13,000 savings were reflected in reduced self-employment taxes paid by changing the tax structure of the business. The software charges the client referenced were fully refunded through a reduced bill for first quarter payroll services. The client was refunded $150 more than the software charges billed.The letter the client referenced never agreed to waive any fees for services already provided. Rather, it explained our position on the situations that made the upward adjustment necessary. It also stated that if the client did not see the value in HBK's services, it would be in his best interest to seek out another firm that better suited his needs.Lastly, we are unsure of one of the two friends the client referred, but we did speak to one. These individuals were significantly behind on their tax obligations. We informed them we would need a retainer given the number of years involved. They did not respond. We believe if the client felt compelled to refer business to us, he must have been more than satisfied with our results.Very Truly Yours,HBK CPAs and Consultants

August 6, 2015Revdex.comServing Western Pennsylvania[redacted], [redacted]Re: Complaint ID [redacted]In response to the above mentioned complaint we submit Mr. R[redacted]'s response.At no time has Mr. R[redacted] held himself out as a CPA. He is an enrolled agent (EA) with...

the IRS and has a Master's of Science in Taxation (MST).The client misstated or misunderstood some of the facts of our original discussion when they were brought as a client into HBK. At the time the client decided to utilize our services, there was a verbal agreement on pricing. He and his wife were given a proposal of what we believed services would cost based on prior year work, but also that prices were subject to change. The client was promised that they would be dealing directly with Mr. R[redacted] and not another advisor in the firm. The prices increased year over year not because of a change of firms, but because there was a dramatic change in the client's tax circumstances. No promises of specific tax savings were promised. The $13,000 savings were reflected in reduced self-employment taxes paid by changing the tax structure of the business. The software charges the client referenced were fully refunded through a reduced bill for first quarter payroll services. The client was refunded $150 more than the software charges billed.The letter the client referenced never agreed to waive any fees for services already provided. Rather, it explained our position on the situations that made the upward adjustment necessary. It also stated that if the client did not see the value in HBK's services, it would be in his best interest to seek out another firm that better suited his needs.Lastly, we are unsure of one of the two friends the client referred, but we did speak to one. These individuals were significantly behind on their tax obligations. We informed them we would need a retainer given the number of years involved. They did not respond. We believe if the client felt compelled to refer business to us, he must have been more than satisfied with our results.Very Truly Yours,HBK CPAs and Consultants

Review: The specific CPA is Michael G. R[redacted].

When we started working with him, he was an independent CPA. He was great at first and was very helpful. He completed our 2013 taxes.

He recommended we transfer our LLC's into S Corps. We also sat down with him and had a lengthy discussion about our unique situation. We were working in [redacted], with a business address in [redacted]. We were collecting Per Diems. We own real estate with a partner. We own real estate as a couple. We realize this is complicated but we had met with him for 2 hours to discuss the proper way to plan for the year.

He quoted us pricing in an email. We told him we would work with him verbally and moved forward.

Before January of 2015, he sold out to a large firm called HBK. He sent an email to all of his clients stating he would still take care of us and nothing would change.

We moved forward and were very surprised when we received our tax bills. It was 37% higher than he originally told us. Almost $2000 for all of our filings.

When we approached him about it, he said it was because of all of the reasons we discussed before hand but mainly because HBK is such a bigger firm and offers more services.

We said we didn't need all of their services. We didn't want a big firm for that reason. We are small business and wanted to work with a small business owner.

They were even charging us $90 a month for software. I mentioned to him that I have never been billed for software, especially on a monthly basis. In this day and age of technology, there is no reason I should be paying a monthly service for a large firms software expenses.

I explained to Mike that he talked us into converting to S Corps and we thoroughly explained to him all of the intricacies of our taxes. That's when he gave us the original quote. After that, he moved to the larger firm and then charged us the larger firm prices even though he told us nothing would change.

We explained to Mike that we would no longer be working with him.

I feel that he completely misled us.

Also, for 2014, he told us we were going to be getting back $13,000 in our return. After he recalculated, we ended up paying $2000 out of pocket to complete our tax payments.

He then sent us a formal letter and said if we didn't want to pay the additional $860, then we should find another CPA.

We said ok, but then he said we still need to pay the money.

We have paid, even though we felt were completely lied to. We are too small to compete or go to court with a firm such as HBK.

One last note; before this happened we recommend him to two of our friends. He never called them which we are now grateful he did not do so.Desired Settlement: I just did not want to pay the additional 37% increase, which was $860, over his original quote.

He said that when he moved to the larger firm, we won't notice any changes except better service.

Instead, we got the same service at a higher price.

Business

Response:

August 6, 2015Revdex.comServing Western Pennsylvania[redacted], [redacted]Re: Complaint ID [redacted]In response to the above mentioned complaint we submit Mr. R[redacted]'s response.At no time has Mr. R[redacted] held himself out as a CPA. He is an enrolled agent (EA) with the IRS and has a Master's of Science in Taxation (MST).The client misstated or misunderstood some of the facts of our original discussion when they were brought as a client into HBK. At the time the client decided to utilize our services, there was a verbal agreement on pricing. He and his wife were given a proposal of what we believed services would cost based on prior year work, but also that prices were subject to change. The client was promised that they would be dealing directly with Mr. R[redacted] and not another advisor in the firm. The prices increased year over year not because of a change of firms, but because there was a dramatic change in the client's tax circumstances. No promises of specific tax savings were promised. The $13,000 savings were reflected in reduced self-employment taxes paid by changing the tax structure of the business. The software charges the client referenced were fully refunded through a reduced bill for first quarter payroll services. The client was refunded $150 more than the software charges billed.The letter the client referenced never agreed to waive any fees for services already provided. Rather, it explained our position on the situations that made the upward adjustment necessary. It also stated that if the client did not see the value in HBK's services, it would be in his best interest to seek out another firm that better suited his needs.Lastly, we are unsure of one of the two friends the client referred, but we did speak to one. These individuals were significantly behind on their tax obligations. We informed them we would need a retainer given the number of years involved. They did not respond. We believe if the client felt compelled to refer business to us, he must have been more than satisfied with our results.Very Truly Yours,HBK CPAs and Consultants