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The same thing happened to me with a different tax issue! My CPA claimed my home office incorrectly for 2 years and when I questioned it he got super defensive. I ended up reporting him to the state board and got a new accountant who fixed everything. Make sure you document EVERYTHING - save emails, write down details of phone conversations right after they happen (including date, time, who you spoke with), and keep all your receipts and tax documents organized. The state board took my complaint seriously and actually suspended his license for 6 months because they found multiple similar complaints. If you're within the 3-year window, definitely get those returns amended. I got back almost $8,200 after my corrections.
Did the state board help you get any compensation for the extra taxes you paid or did they just discipline the CPA? I'm worried about the time and expense of going through the complaint process if we don't get any actual money back.
The state board only handled the disciplinary action against the CPA - they don't have the authority to order financial compensation. However, filing the complaint created documentation that helped when I filed amended returns with the IRS. It strengthened my case that the errors weren't my fault. For getting money back, that happens entirely through filing amended returns with the IRS. My new accountant handled that process. I did end up suing the original CPA in small claims court for the fees I paid him plus the costs of having the returns corrected, and I won that case. The disciplinary action from the state board was helpful evidence in that lawsuit.
Make sure you check the statute of limitations! Generally you only have 3 years from the original filing date to amend a return and claim a refund. If any of those years are approaching the 3-year mark, file a protective claim immediately even before you have all the documents ready. One option worth considering is having the CPA firm pay for the cost of amendments since it was their error. Some firms have policies for this. Even though your experience with them was terrible, consider sending a formal letter to the managing partner (not the CPA you dealt with) outlining the errors and requesting they cover the costs of amendments.
Another option to consider - you can request a transcript of your account. Go to irs.gov and search for "Get Transcript Online." The transcript will show if they've processed your overpayment and whether a refund has been scheduled. If the transcript shows the adjustment but no refund, that might indicate something is stuck. If it shows nothing about the adjustment, then they haven't processed your response yet.
Thanks for this suggestion! I just checked my transcript online and it shows the full payment I made, but nothing about any adjustment or pending refund. Does this mean they haven't processed my response yet, even though they sent me the revised amount in September? Should I be worried?
That indicates they haven't yet processed the adjustment to your account, even though they acknowledged the correct amount in their September notice. It's not unusual for there to be a delay between them determining the correct amount and actually adjusting your account. I'd give it another 2-3 weeks and check the transcript again. If you still don't see an adjustment by then, that would be the time to call them. When you call, specifically mention that you received a revised CP2000 determination showing you only owed $2,300, but your transcript doesn't show an adjustment for the $2,500 overpayment.
Just a heads up - when you do get your refund, make sure they include interest! By law, the IRS has to pay interest on overpayments. The current rate is around 7% and it should be calculated from the date you made the payment.
Is that interest taxable? I got a refund with interest last year and wasn't sure if I needed to report it.
You can also request an "Account Transcript" from the IRS which will show if they've received your return. Go to irs.gov, create an account (or log in), and request a transcript for 2025. It updates pretty quickly after filing - usually within 24-48 hours. Even if you don't get a refund, it'll show that your return was received and processed. Also, despite what TurboTax says, the IRS considers a return filed on the date it was electronically transmitted. If TurboTax sent it while it was still April 14th in the US, you're good regardless of your local date.
Does that Account Transcript show if you still owe money or if payments were applied correctly? My online account shows I owe $0 but I know that's not right since I just filed yesterday and owe around $3,500.
Yes, the Account Transcript shows your balance due and any payments applied. If you just filed yesterday, there might be a delay before the $3,500 shows up on your account. The transcript will show codes for return filed, assessments, and payments. It usually takes 2-3 business days after your return is accepted for the amount due to appear in your account. Don't worry if it still shows $0 right after filing - that's normal. Just make sure to submit your payment by the deadline even if the balance isn't showing yet.
TurboTax actually has a way to check this too! Log into your account on desktop (not mobile app), go to your tax return, and click "View E-file Status." It should show if your return was accepted or rejected by the IRS. Sometimes the emails get filtered to spam or delayed. As long as you submitted while it was still April 14th in the US, you're considered on time regardless of your local date.
I checked my TurboTax and didn't see any "View E-file Status" option. Is this only available in certain versions? I used the Premier version but only see a general status that says "Filed" with no details about IRS acceptance.
One thing to consider when looking for an online CPA is their familiarity with the tax laws in your specific state. I hired someone who was great with federal issues but missed some state-specific deductions that cost me quite a bit. Also, ask about their client portal and how secure it is. You'll be sharing a lot of sensitive financial documents, so security should be a priority. My CPA uses a really good encrypted system that makes me feel comfortable sharing documents online.
This is such a good point! I made this mistake last year with a CPA who didn't know about my state's special treatment of retirement income. Do you think it's better to find someone local who does online consultations or someone fully remote?
I've had better luck finding someone local who offers online services. They tend to know both the state and local tax situations better while still providing the convenience of remote meetings. A fully remote CPA can absolutely work too, especially if they specifically list your state as one they're familiar with. Just make sure to specifically ask about their experience with your state's tax laws during your initial consultation.
I've been using FreeTaxUSA for years and honestly don't see the point in paying for a CPA. It walks you through everything step by step and costs way less. Unless you have super complicated investments or something, it seems like overkill.
Tax software is fine for filing, but it doesn't help with actual tax planning throughout the year. A good CPA helps you make strategic decisions BEFORE tax time to minimize what you owe. Software just processes what already happened.
That's a fair point. I guess I was just thinking about the filing part and not the planning aspect. Maybe I should look into this too since I'm starting a side business this year and could probably use some guidance on how to set things up properly from the beginning.
Chris King
Has anyone looked into moving to a lower tax state? I'm considering relocating from California to Nevada or Texas to eliminate state income tax. For someone in your tax bracket this could save you thousands every year. Would love to hear from people who have actually done this.
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Rachel Clark
β’I moved from New York to Florida last year specifically for tax reasons. Saved me about $12,000 in state income tax alone. BUT there are serious considerations beyond just the tax savings. Florida has higher insurance costs, and the culture shock was bigger than I expected. Also, you need to be really careful to establish proper domicile in your new state - the high-tax states are aggressive about auditing people who claim to have moved.
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Zachary Hughes
Don't forget about timing your income and deductions strategically. If you're close to a tax bracket cutoff, deferring some income to January (if possible) could save you money. Similarly, you can "bunch" deductions by making two years of charitable contributions in a single year to get over the standard deduction threshold. I saved about $3,200 last year by pushing a freelance project payment to January and making two years worth of charitable donations in December. Just make sure you're working with legitimate strategies and not playing games with reporting requirements.
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Admin_Masters
β’This is really interesting! Would this work for regular W-2 employees though? I don't have control over when my employer pays me, but I do make charitable donations. Would bunching them actually help if I don't have enough other deductions to itemize?
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Zachary Hughes
β’It's more challenging for W-2 employees, but you still have options. While you can't control your regular paychecks, you might have some flexibility with bonuses or by adjusting your W-4 withholding toward the end of the year. Regarding charitable donations, bunching absolutely helps if it pushes you over the standard deduction threshold. For 2025, the standard deduction is projected to be around $14,000 for single filers and $28,000 for married filing jointly. If your itemized deductions (including state/local taxes, mortgage interest, and charitable giving) would normally be just below the threshold each year, bunching two years of donations into one year could push you over the limit, allowing you to itemize in that year and take the standard deduction the next.
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