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CKTax washes hands on their mistakes resulting in Tax penalty

Advertised as an A+ BBB rated company, in need of Tax help, I paid $2000 for the service CKTax advertised to provide. When a mistake was made by their accountant, Craig Kesler, which was discovered by the IRS resulting in over $2500 of penalty to me, Cynthia Kuhne, who owns the company, washed her hands and told me to "contact the IRS directly". Isn't this precisely the reason why I hired them...for representation. Instead CKTax increased my tax burden with their own mistake! There are two complaints in the BBB. You may be wiser to read them before hiring. Not sure why they are still A+
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#721579

In response to Anne Lee’s complaint:

This is the last communication sent by CKTax to Ms. Lee. She has not responded:

"Anne,

I met with Kesler yesterday and I also went back through the returns. The $11,075 was left off the 1040X but it was also not put on the 2010. I do not know the conversations between you and Kes but I looked through e-mails, where numbers were told to be put on and then taken off and even that “numbers were made up”. I know a few weeks ago, I asked you if you had received a refund or had it applied to any other year and you were adamant that you did not. Kes would have gone by any instructions you gave him. I also looked at the 2010 transcript from the IRS because if you sent in a check with the 2010 for the balance of $14,783 and the estimated tax payment was not on the return, you would have received a refund. I checked the IRS records and you did indeed a check for $11,251.86 was issued you on 11/28/2011. If you would have told me I could have straighten this out at that time. I still did not know about that refund until I checked the IRS records yesterday even though I asked you several time.

We always endeavor that our clients are satisfied. However, I do not think you have been upfront with us or with the IRS. Because of this I cannot defend you because I do not think you have been honest through this process.

Thank you,

Cynthia Kuhne E.A."

Ms. Lee came to me in May of 2011. She had been audited for her 2009 tax return that she prepared herself. Basically, the tax return showed overstated rental expenses of approximately $100,000 and her taxable income was understated by $76,454. On the original return, she had a refund of $11,075 when her tax liability should have been $20,745.

The audit was very successful which Ms. Lee admitted. She was charged no penalties even though the tax return was at the very minimum grossly negligent and possibly fraudulent.

We then filed a 1040X for her. She had elected to have the $11,075 refund applied to her 2010 taxes on the 2009 tax return she originally prepared. . It was left off the 1040X, but it was not also included on the 2010 which we prepared. After I completed the audit, Kesler prepared the 1040X. E-mails went back and forth where she stated to put items on then to take them off. She even mentions in one of her e-mails, “that she just made numbers up”. I did not know this at the time of the audit, or I would not have done the audit for her. We endeavored to file the 1040X so she could have an accurate return.

The 1040X would not process, but neither I nor the IRS could understand why. I worked on it for approximately a year with the IRS. Finally it was sent up to a specialist who asked if she had ever received a refund or had the 2009 refund applied to another year. She adamantly told me no. The IRS found out that she did have it applied to another year. I also went and pulled records from the IRS that stated she received a refund of $11,251.86 on 11/28/2011. The IRS wants this paid back with interest. She was not entitled to it since she filed the 2009 tax return grossly inaccurate giving her that refund. If she would have sent it back at that time or spoke with me about it when she received it then I could have let her know to send it back. However, she has never told me or the IRS about it even though she was asked numerous times.

Ms. Lee wanted me, after this, to defend her against the IRS on the interest of which after finding out the truth about the case, I declined. When I would not do this, she wanted this firm to pay the interest.

I have included the last e-mail I sent to Ms. Lee of which she has yet to responded. I also have e-mails to back up all of the information I have provided and also IRS records to prove that she did indeed receive a refund.

Ms. Lee saved thousands of dollars and potential fraud repercussions by hiring CKTax.

ID
#448905 Review #448905 is a subjective opinion of poster.
Loss
$2500

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