POLL - Tax return preparation fees - CPA firms


#1

I’m starting a poll on what people think is an acceptable tax return preparation fee for members of the crypto community on their 2017 federal and state income tax returns. I’ve been telling the forum for the past few months that the CPA industry is not yet able to deal with accounting for crypto. The problem is that they and the legal field seem to be the ones that prepare most of the returns for high net worth individuals such as yourselves.

I just contacted a medium size CPA firm in ATL with which I’ve had a long relationship. They may be interested these returns BUT their fees are very high. Hold on but it’s $2,000 for a minimum. The CPA and law firms have a lot of supervision that they must endure and this jacks up their rates. I’m in the process of setting up a meeting with the firm to try and get substantially lower fees if I can refer a few more (read many) people interested in this service.

So what do you guys think is a fair deal for your returns? Please answer back to me with a dollar amount AND the number of crypto transactions that you had during 2017.


#2

Yeah $2k min is a lot … feels like additional tax.
If you have patience you can do it on your own. I will have to allot one full day to do it on my own.


#3

i dont think $2000 is at all unreasonable for a good CPA to take care of your taxes, especially one that offers liability on inaccuracies.


#4

Creediator – Do you have a # in mind?


#5

OK I’ve got a meeting set up with partners from this mid-size Atlanta CPA firm for about 10 days from now. Want to talk to them about being a crypto-forward CPA firm. See if we can get some deals on our returns. Still need your opinions on appropriate tax return prep fees.


#6

Can we do bulk deals?


#7

Depends - if some one didn’t make enough in crypto because they were hodling and DCAing all along like me then I dont have additional cash to pay taxes and CPA fees. I would say they should focus on percentage of crypto profits as fees (based on portfolio size) or better yet get paid in crypto for fees.

My portfolio grew from $2k to $11k. It makes no sense to pay taxes on $9K (almost 2.5k) and $2k CPA fees. that’s half my gains. It has to be proportional to gains and % fee cannot be high that it discourages people like it did me when you mentioned $2k.

I am sure people who have large sums in crypto with good gains would not mind paying 2k to 10k but they are a minority. majority of us invested little by little. like peters DCA…


#8

That’s the intention!!!


#9

Sorry guys, just want to refresh this to keep it in the active rotation (Peter – OK??)

I need some info from the group for this meeting next week.

PLEASE CONTRIBUTE TO THE DISCUSSION


#10

Sorry guys, This is a prime reason to use a CPA this year.

Coinbase is providing a Cost Basis for each of the different wallets for Tax purposes.
However they are considering a SELL if you move your money out of their wallet into a hardware wallet.

Great catch Abs!!! Is this transaction labeled by Coinbase in any specific way?

Everyone should be aware of this wrinkle when (if) they go through the process of downloading their activity and give it to their accountant.

Also they provide a 1099-K for users with more than 20K in transactions. Don’t know how helpful will this be as it won’t capture the transactions accurately.

Prime example of The Accountant Full Employment Act. Everyone receiving a 1099-K this year having errors like those described above MUST reconcile their 1099-K proceeds to what they actually received. Put those schedules away for 1.) when/ if the IRS decides to audit your return or 2.) you receive a notice of deficiency related to that difference.

If it is a large difference caused by a large dollar transfer I STRONGLY SUGGEST that you hire a good accountant this year.


#11

The CPA I am using in TX charges between $450 and $650 depending on your documentation and this he stated is more than just preparing your taxes. He stated that most charge for meetings and sit downs on an hourly basis and due to the paperwork involved with charging for those sessions he wraps it up into your yearly tax return.

It doesn’t look like this is normal from what I see above. He has been following cryptos for about 4 years and has at minimum 15 other crypto clients other than myself.

Let me know your thoughts on this @Peter_Rehm


#12

Huh!! He is like hens teeth. But good to hear he’s out there.

Is he in Dallas or some other large city??


#13

North of Austin - Cedar park area for those pub’rs that are intersted as I have already gave his reference out to a few of them.


#14

Remember that Texas has NO STATE TAX RETURN TO PREPARE.


#15

Well aware of that and have been loving it.


#16

Could you give me his contact info. I did lots of trading and don’t know what to do to report my tax.


#17

I plan on using excel and doing it myself. I also used manage 401(k)s for a recordkeeper, so maybe I am just more comfortable with doing it myself. I think that 2,000 is very high. I am going to try to use turbo tax and replace stock ticker symbols with coin symbols and the data should calculate cost basis the same.


#18

It is just getting that BTC price for the precise time the exchanges happen. Hell this might be an addon that @peter and @john could add to CoinPuffs. A way for us to enter date and time and it spit out the BTC value of a coin or in the case of BTC a FIAT value. Just a thought here guys to make it better.


#19

Are you in the North Austin area?


#20

I’m in California. Don’t know any CPA that could help me here.