Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:01/06/2025

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I signed up for a monthly service with a salesperson who stated that I could cancel the service at any time. I was also promised things about the service that did not happen, and the customer service team onboarding did not have any of the things promised by the original salesperson who got me to sign up. I placed a ticket to cancel the service because I actually wont even have enough business income for the service to make sense and was notified that there would be a 3 month buyout of an annual contract. This is not something I was made aware of and was in fact told specifically that I could cancel at any time during the period so I feel there was a deceptive nature to the process of this subscription. I have paid a $350 one month fee and the company has done virtually nothing for me, so I do not feel that they are justified in seeking any additional funds and should also change their sales policies to match what the service actually does and does not provide and be clear that you are signing up for some get that will have a $750 penalty if you cancel it. I disputed the second month charge with my bank because I canceled prior to that and they charged me anyway- they are not prompt in responding to tickets but it was during a holiday season so I do have some understanding with that. So as of now I have already paid them $750 and they are asking for $750 MORE to get literally nothing at all. I will have been given no services whatsoever at this point because my business was not starting until January 1 and now it never will.

  

  Business Response

  Date: 01/16/2025

  Dear BBB,
  

  We are following up regarding this complaint, as we were able to resolve this matter directly with the customer.

  Since the matter has been addressed to the customers satisfaction, we would like to confirm how this will be reflected on our profile. If possible, we kindly request that the complaint status be updated to "resolved" to ensure an accurate representation of the outcome.

  Please let us know if there are any additional steps we need to take on our end to properly document this resolution. We appreciate the opportunity to have spoken with the customer and used their feedback to improve our processes.

  Thank you for your time and assistance.

  Customer Answer

  Date: 01/16/2025

   
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Sincerely,
  
  ******* *****

• Initial Complaint

  Date:11/19/2024

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  ********************************************* is reporting this because we consider Formations, ************** and behavior to be unethical and negligent. We began with them on 10/25/2021 and our last resolution attempt was on 08/12/2024 (attached, they did not respond). They did not prepare a single 2022 or 2023 P&L accurately or on time. Their services were sloppy, full of mistakes and dysfunctional, so we asked for a refund for 2022 & 2023 fees paid. Formations agreed to it if we paid for the 2022 1120S tax return (which extended our time with them). It took them 4 months to prepare 4 faulty versions of the return. The final filed return still had the large error which resulted in a $10k IRS over payment. Formations then refused to refund their fees as promised. We had to pay a new CPA to correct the return.MORE INFO:We complied with every Formations on boarding requirement, including changing banks and providing DOR access. All 2022 and 2023 P&Ls were inaccurate and late despite countless requests and follow *** to correct errors.Formations did not respond to ESD requests which resulted in a court subpoena. Formations advised that $75k in estimated taxes were due that had already been paid.Formation advised that $11k in estimated taxes were due during a time of no revenue. Formations repeatedly did not follow the form instructions on the Transient Lodging Tax Returns despite us correcting them multiple times. Formations did not report all B&O revenue.******* and her team continually re-submitted transaction details to correct errors and deal with high staff turnover. Formations upper management responses to us were contradictory to the documentation we submitted which was deeply concerning. The promised refund is a tiny drop in the bucket compared to the inordinate amount of time and stress ******* and her team endured. The toll on her small business will not be recovered and ******* does not want others to fall into this same morass.

  

  Business Response

  Date: 11/30/2024

  Dear BBB Representative,
  
  We appreciate the opportunity to respond to the complaint submitted by ********************************************. We respectfully disagree with the claims made in the complaint and would like to provide a comprehensive response to clarify key points.
  
  Commitment to Ethical and Professional Standards
  Our team adhered strictly to professional ethics and tax laws throughout our engagement with ********************************************* During our relationship, it became apparent that the customer was requesting a tax position that we determined, after a thorough review, to be aggressive and potentially fraudulent. As a licensed and regulated provider, we have a fiduciary duty to operate within the bounds of the law and cannot compromise on this principle. This is the source of the customer's belief that they overpaid. However, we cannot execute a tax strategy that risks fraudulent activity, as this would not serve the customer's best interests.
  
  Specific Allegations Addressed
  
  1. Preparation of P&Ls and Tax Returns:
  All Profit & Loss statements (P&Ls) and tax returns were prepared using data provided by the customer. Any inaccuracies resulted from incomplete or inconsistent records, which were communicated promptly. The T&Cs explicitly state (see here: *******************************************************) that the customer is solely responsible for the accuracy and completeness of all data provided to Formations. ********************************************* failed to meet this obligation by providing incomplete, inconsistent, or inaccurate records, which directly impacted the preparation of Profit & Loss statements and tax returns. As the inaccuracies originated from the customer's data, ********************** cannot be held liable for errors or delays caused by the customer's noncompliance with this contractual obligation. While revisions were made to the 2022 return to address concerns, the delays primarily stemmed from our efforts to explain, clarify, and defend our position regarding the requested treatment of income. Communication challenges were exacerbated by the fact that *******, the primary customer, delegated the majority of correspondence to ********* *****, the business manager, who possessed limited knowledge of the relevant tax matters. Despite multiple requests to speak with ******* directly, we were informed this was not possible, as the team was intentionally shielding her from these discussions. This approach created significant barriers to resolution and frustration for both parties.
  
  2. Refund Promises and Errors:
  Our team offered a partial refund as a goodwill gesture contingent upon the successful completion of the 2022 tax return. However, this refund was withheld when it became evident that the customers demands and actions rendered a resolution unattainable. The Terms and Conditions do not require Formations to issue refunds once services have been rendered. Formations fulfilled all contractual obligations by completing and delivering accurate financial statements and filing all tax returns with the *** in a timely manner for each year of engagement. The T&Cs also implicitly limit Formations liability for situations arising from customer-provided data or noncompliance with instructions. As the refund request stems from circumstances created by the customers own actions (e.g., the overpayment and tax adjustments), Formations acted within its rights. Regarding the $10,000 IRS overpayment, this occurred as a result of the customer insisting on including tax adjustments that were contrary to *** guidelines, despite our team explicitly advising against this course of action.
  Formations' adherence to IRS guidelines and applicable laws is a foundational requirement outlined in the T&Cs. The customer's insistence on tax adjustments that contradicted *** guidelines directly violated the agreement's stipulations that all services must comply with applicable laws. Formations acted in compliance with its legal and ethical obligations, refusing to compromise on tax positions that could expose both the customer and ********************** to significant legal risk.
  
  3. Responses to Inquiries:
  While we acknowledge delays during a staffing transition, we firmly reject the claim that requests or court subpoenas went unanswered. All inquiries were addressed, and documentation was provided promptly and in good faith. The T&Cs account for reasonable delays due to unforeseen circumstances without imposing additional liability on the company.
  Formations responded to all customer requests and legal inquiries in a timely and professional manner, as required under the agreement.
  
  4. Professional Relationship and Attempts at Resolution:
  Formations CEO, ****** *******, personally attempted to connect directly with ******* on multiple occasions to have a CEO-to-CEO conversation to resolve the matter. One such attempt was made on August 15, 2023, offering an open dialogue. Unfortunately, the customer responded, I dont think that would be productive at this juncture, making it clear that they were unwilling to engage in constructive resolution. Despite this, ****** continued his efforts to resolve the matter, reaching out again on August 16 and August 23. These attempts were also ignored, further demonstrating the customers lack of intention to engage in a resolution. The customer declined to engage in constructive discussions, which limited our ability to resolve the matter collaboratively. As the relationship further deteriorated, it became evident that the customers expectations conflicted with our ethical responsibilities and commitment to accuracy. We recommended the customer transition to another provider who might better align with their preferences. Formations went above and beyond to provide a clean exit package of both data and systems (Gusto and Xero) to ensure the future service provider had access to the most accurate data to prevent any business downtime. Offers were made for Formations to collaborate directly with future service providers as well to ensure a seamless transition. Formations reserved the right to recommend the termination of services due to the customers inability to align with ethical and professional standards outlined in the T&Cs.
  
  Our Position
  As per our Terms and Conditions, ********************************************* was responsible for providing accurate and complete financial data. Inaccuracies in the Profit & Loss statements and tax returns were directly caused by inconsistent data provided by the customer, as outlined in Section 1.c of our agreement. Furthermore, Formations cannot comply with any tax adjustments that violate IRS guidelines, as per Section 2.b, and the $10,000 IRS overpayment resulted solely from the customers insistence on such adjustments despite our advisement.
  Formations will never jeopardize its professional reputation by agreeing to tax positions that could expose our clientsor ourselvesto legal risk. While we regret the customers dissatisfaction, our decision to terminate the relationship was in the best interest of all parties.
  
  Closing
  We empathize with the frustration expressed but stand firmly by the integrity of our work and our commitment to ethical practices. We respectfully decline to issue the requested full refund, as we invested significant resources into providing accurate services that the customer ultimately rejected. Our team has dedicated considerable time and resources over an extended period to address this matter, but in the spirit of goodwill and to bring this issue to a close, we are willing to offer a partial refund of $3,000, contingent upon the customer's written agreement that this resolution fully satisfies all concerns and concludes any further obligations on both sides.
  

  We are happy to provide supporting documentation to substantiate our claims should further review be necessary.

  Customer Answer

  Date: 12/06/2024

  
  Complaint: 22578814
  
  I am rejecting this response because:  
  

  Formations responses are not accepted and are inconsistent with the facts:

  This is the first time *** has heard that Formations is accusing *** of requesting a tax position that was too aggressive and potentially fraudulent.  We would like their documentation to support this.  Below and attached you will find documentation that directly opposes this accusation.  We do not consider asking Formations to explain and reconcile their changing revenue, expense and distribution/contribution numbers on the 4 different versions of the tax returns to be an aggressive or potentially fraudulent tax position.  We did not experience Formations  Commitment to Ethical and Professional Standards:  amongst the errors and failure to keep their promises, they advised ******* to pay $75k and $11k to the *** that was not due and prepared an incorrect 1120s which resulted in the $10k overpayment.  If ******* had followed this tax advice, she would have paid $97k to the *** that she did not owe.
  
  By January 2023, Formations had lost the privilege of access to ******** time.  This is because in 2022, ******* and her team spent an unprecedented amount of time submitting and then resubmitting transactional documentation and information to Formations.  This was not only time-consuming but extremely stressful as it took too much of ******** and her teams time and away from their clients, which was unacceptable.   ********* ***** was retained in January of ************************************ part to take over the time burden of the Formations relationship and clean up 2022 financials.  ********* is not an accountant but has 30+ years of P&L experience.  After reviewing the Formations relationship and deliverables, ********* submitted the written complaint to Formations that led to the promised refund from ****** *******.  Yes, ******* declined a conversation with ****** on 8/15/2023, she wanted to keep everything in writing and did not think all the outstanding issues and getting the math of the reimbursed expenses accurate would be resolved in a conversation.  
  
  We ask that Formations provide the documentation supporting their position that *** did not respond to requests for information and/or provided inaccurate information which lead to material errors and/or delays in the P&Ls and 2022 1120s. *** did meet the Formations service agreement requirements to provide accurate and complete data:  Formations had direct real time access to all ******** accounts (including reimbursable expenses as they were incurred and the deposits showing they were reimbursed), all ********************* and year end statements (showing all earned commission revenue, Windermere related expenses and B&O taxes paid), DOR access and ******** team submitted and resubmitted monthly transactional expense and revenue documentation (including all the reimbursed expenses and deposits) via spreadsheets, emails and uploading to the Formations website.  Formations had all documentation on every expense and every deposit. The struggle was to get what we had already submitted accounted for accurately.  For example, on 7/21/2023 Formations requested the 2022 Windermere year end statement because they were trying to reconcile the 2022 revenue number, we responded that it had been submitted to them on 1/23/2023.  *** met their responsibility in the Formations service agreement. 
  
  We ask that Formations provides documentation to support their statement: Regarding the $10,000 *** overpayment, this occurred as a result of the customer insisting on including tax adjustments that were contrary to *** guidelines, despite our team explicitly advising against this course of action.  This statement is a fabrication, and we have documentation to prove it.  The $10k overpayment was because Formations recorded the reimbursable expenses in contributions/distributions instead of in expenses (which understated expenses causing the *** overpayment).  ********* sent Formations an email on 8/14/2023 questioning this (and other outstanding items), it went unanswered and was never corrected.  We have texts from ****** to ******* dated 8/16/2023 stating Ok. The tax return is ready sign it and you are good. followed by The deadline is 9/15. Lets get it signed this week. We also have an email from Formations dated 8/17/2023 stating: I hope all is well. I'm reaching out to remind you that the business tax return for ******************************************* is ready to be signed. The return has gone through an extensive review process, all the way up to our CEO ******. The return is ready to be signed and filed. Lastly, we have an email dated 8/17/2023 showing ******* agreeing to sign the tax return noting that Jeannettes questions including the reimbursed expenses in contributions/distributions concerns went unanswered. Moreover, ****** Plinners name is on the return as the Preparer and he personally urged ******* to sign it.  The responsibly of the $10k overpayment to the *** is squarely on ******s shoulders. We brought the same concerns and documentation to our new accountant he understood the issue in one email, amended the return to move the reimbursable expenses from distributions/contributions to expenses and keeping the reimbursed expense revenue in revenue (to net out to zero).  Subsequently, ******* received the $10k *** refund.
  
  Background on the reimbursed expenses: In April 2023, ********* resubmitted the 2022 $37k of reimbursed expenses to directly to ****** at Formations (head of tax) because the reimbursed expenses were still in the staging category which overstated it by $37k, not a small number.  ****** responded he would take them out of the staging category (we did not discuss where he was going to put them on the P&L or tax return). This also brought up the question of how these expenses were handled by Formations when they were reimbursed.  *** asked that the revenue number on the P&L be reconciled with the real estate commission revenue.  Both staging expense and real estate commission amounts are important markers for ******* to see to manage her business. 3 months later, on 7/19/2023 Formations informed us that the reimbursed expenses needed to be recognized in both revenue and expenses according to state and federal law (with zero impact on net profit) this was new information.  *** did not insist that Formations take any actions to contradict this. We did ask that the numbers be reconciled with the Windermere statements (since Formations kept changing the numbers on the 4 versions of the 1120s).  Formations stated the reimbursed expenses and income would net out to zero which is not how they prepared the final version of the 1120s.  Formations also informed us that these 2022 reimbursed expense revenue amounts were subject to B&O taxes, which Formations had not filed for 2022.  ****** responded that was because the revenue did not reach the small business threshold, which was not the case (***s revenue in 2022 was well over the threshold and B&O taxes had been all year).   Our new accounting team has put reimbursable/reimbursed expenses into separate categories so it can be accounted for but does not overstate the actual staging expenses or commission revenue categories.

  Regarding the *** filings: We ask that Formations provide the documentation that supports their statement: All inquiries were addressed, and documentation was provided promptly and in good faith.  Formations did not respond to the *** filing inquires promptly, if they did ******* would not have received the court subpoena for lack of filing. 
  
  We ask that Formations provide documentation that supports their statement:  We recommended the customer transition to another provider who might better align with their preferences.  We have an email to Formations summarizing our 4/12/2023 conference call with ******* (head of customer success) and ****** (head of tax) their solution to solve all the problems outlined in our written complaint was requesting more of our time (which was an additional cost to *******) and to increase their monthly fee to us (for the third time).  We responded that we wanted a refund, we were not a good fit for Formations and never should have been taken on as a client.  *** ended the service agreement with Formations, but we still needed to wrap up 2022.
  
  Since the remaining items in the original BBB complaint were not addressed, we assume that Formations agrees and takes responsibility for them.
  
  ***s position is that Formations did not provide the services contracted for and *** provided all the documentation, bank and DOR access to do so. Therefore, *** is seeking a refund for all fees paid in the amount of $10,727. 

  Please let us know if we need to provide any further documentation. 

  
  Sincerely,
  
  ********* *****

  

  Business Response

  Date: 12/19/2024

  Dear BBB Representative,
  
  We firmly refute the points raised in both responses, and must address the significant inaccuracies. While we regret the clients dissatisfaction, it is crucial to distinguish dissatisfaction from professional negligence.
  
  After years of service, and nearly 1.5 years since our last communication with ******* ******, we cannot agree to a full refund. This would render the extensive work and services we provided from October 2021 to August 2023 as free of charge. Additionally, it is worth noting that the individual submitting this claim is the business manager for ******* ****** *********** (***), not the paying customer.
  
  Our terms and conditions explicitly state that our fees are non-refundable. However, as a gesture of goodwill, we offered a partial refund of $3,000, which we believe is more than fair given the substantial work delivered. Our work resulted in significant tax savings of approximately $60,000.
  
  Requesting a full refund for work completed years ago, based solely on dissatisfaction, is both unreasonable and disregards the preferred rate *** received through a partner, which already included a significant discount on services.
  
  ***s claim states that Formations did not provide the contracted services. However, all services outlined in the signed contract were fulfilled. Contract from October 2021 attached.
  
  We stand by the quality and integrity of the services we provided and hope this response clarifies our position. We remain open to reviewing any detailed concerns to resolve this matter transparently.
  
  1. Accuracy of Tax Returns
  The customer alleges that a $10,000 overpayment resulted from errors by Formations. This claim is inaccurate. The discrepancy stemmed from a preference in how financial items were recorded, not an error. The statement, If ******* had followed this tax advice, she would have paid $97,000 to the *** that she did not owe, is categorically false.
  
  Evidence: We have detailed financial records and profit and loss statements, consistent with *** guidelines.
  Confidentiality: We cannot publicly disclose these records due to client privacy, but we are prepared to provide additional context privately to the BBB upon request.
  
  All tax returns and profit and loss statements undergo an extensive review process, including review by our Senior Accountant and the *** who is the Head of Business Tax at Formations. At no point did we act without diligence or care.
  
  Our process relies on customer-provided data. If critical data is missing, it delays our ability to complete the work. Once all information is received, we proceed through internal and customer review stages to ensure accuracy and alignment with client expectations. This collaborative process is designed to prevent errors before filings are finalized.
  
  The tax code inherently allows for varying strategies based on risk tolerance. As the official preparer, we aim to balance compliance and client preferences, though disagreements on approach may arise.
  
  Ultimately, we could not reach a mutual agreement with ******* ****** *********** regarding the last tax return we worked on in August 2023. The return was completed, personally reviewed by our CEO, and ready for filing.
  
  2. Communication Challenges and Third-Party Involvement
  The reliance on the business manager, ********* *****, significantly contributed to delays and misunderstandings. While we believe ********* acted with good intentions, her involvement restricted direct communication with the paying customer, resulting in inefficiencies. Moving forward, we have implemented a policy to ensure paying clients are directly involved in all communications; no exceptions.
  
  Direct Communication: Despite multiple attempts, including text messages and WhatsApp, we were unable to establish direct communication with ******* ******. The complaint addresses this outreach from Formations CEO in August by saying, she wanted to keep everything in writing and did not think all the outstanding issues and getting the math of the reimbursed expenses accurate would be resolved in a conversation, but a conversation is exactly how it would get resolved. Formations made efforts to work towards a resolution but was consistently met with resistance.
  
  Additional Examples: For the Oregon Quarterly Tax Filing, critical information was not communicated despite repeated follow-ups (emails dated July 6, 19, and 24, 2023).
  
  Additional Examples: The complaint specifically says Formations did not respond promptly to the ****************************** (***), however we were forwarded the email from the customer on Monday, December *********, and we replied with instructions on how they can proceed on Tuesday, December 13th 2022. The matter that this addresses is for a previous employee they had on payroll and something that is outside of our scope of work. Regardless, we still took time to research instructions to help them navigate the situation, and offered to complete and file the *** paperwork on their behalf for a nominal fee of $75. In the end, a third-party company we work with had missed a previous Q2 filing which prevented closing the account, upon the proper paperwork being submitted, this matter between *** and *** was resolved.
  
  Professional Conduct: Screenshots confirm our team's consistent professionalism and patience, even under unproductive feedback. Our dedicated staff worked tirelessly to support the client (by proxy of the business manager), often at great personal and professional strain. While we prioritize empathy and exceptional service, protecting our employees' well-being is equally important.
  
  3. Misunderstandings Regarding Reimbursed Expenses
  Reimbursed expenses, as required by *** and state law, must be reported as both revenue and expenses resulting in a net effect of zero for Federal tax purposes, but potentially subject to local B&O tax in the state of **********. Confusion about this reporting requirement appears to have contributed to dissatisfaction.
  
  Clarifications Provided: We attempted to clarify this process, prior to the tax returns finalization. Our Director of Tax offered to personally meet with the client or business manager to provide clarity, but this meeting was declined (screenshot attached).
  
  We believe this meeting would have resolved many of the miscommunications, and repaired the relationship moving forward.
  
  We maintain records of this clarification, which are available for the BBBs review as well as the financial records that confirm this (withheld due to privacy but available to discuss if requested).
  
  4. 1099 Filings and B&O Tax Concerns
  The claim that we failed to file required 1099s and B&O taxes is incorrect.
  
  1099 Forms: Our team consistently prepares 1099s, even in cases where filing may not be strictly required, to ensure compliance and avoid potential penalties. This proactive approach was discussed with the client and is documented (see attached screenshots). When there is any uncertainty about the necessity of a 1099, we proactively prepare one, prioritizing readiness over assumption to avoid any gaps in compliance.
  
  B&O Taxes: Our actions were based on the information provided and the relevant small business thresholds at the time.
  
  5. Commitment to Professionalism and Ethical Standards
  Throughout this relationship, our team upheld the highest standards of professionalism, even when communication became unproductive.
  
  Screenshots demonstrate our patience and good faith efforts to address concerns. On the screenshots, you can see the customer continued to be removed from email threads, leaving us to communicate solely with one of their employees.
  
  We take pride in our commitment to ethical financial practices and accurate tax reporting.
  
  6. Privacy and Supporting Documentation
  Formations maintains comprehensive financial records, including documentation and correspondence that supports our position on all disputed points. However, while we can share email exchangesmany of which were submitted by the business managerwe cannot disclose financial records supporting our claims. We are willing to discuss this privately with the BBB to validate our claims.
  
  Conclusion
  Formations consistently acted in good faith, delivering high-quality services and measurable value to ******* ****** ***********. We remain committed to resolving this matter transparently and respectfully.
  
  Should the BBB require further clarification, we are prepared to provide additional documentation as needed.

  Customer Answer

  Date: 12/27/2024

  
  Complaint: 22578814
  
  I am rejecting this response because:

  *** does not agree with or accept ******* statements, see below and note that ******* ****** has read and approved all BBB communication; ******* can and will delegate as she sees fit unless the BBB objects.

  *** obviously does not agree with this statement submitted to the BBB: Formations consistently acted in good faith, delivering high-quality services and measurable value to ******* ****** ************ This is **** documented experience: ****** CEO ****** ******* read **** original and subsequent complaints regarding poor and failed service provided, agreed to a refund, prepared inaccurate taxes, defaulted on the refund and then failed to prove fabricated accusations submitted to the BBB which attacked ***s ethics and the quality of **** financial information shared with ******* This is not acting in good faith, delivering high-quality services or any measurable value to ******* ****** ************

  *** has also escalated the complaint against ****** with the Washington State Attorney General and is submitting the BBB progression with them.
  

  Below is ***s response to ******* 12/20/2024 BBB response:

  Yes, ****** did do work on behalf of ***, unfortunately the work was inaccurate, late or both. This is well documented in **** original and subsequent complaints.  **** complaints led to ****** wanting *** to help ****** fix the problems and pay a higher fee (which *** declined).  ******s then agreed to refund $8,075 (for 2022 and 2023 fees paid) and ******* paying $3k for 2022 1120s and 1040 tax returns.  *** did not receive the refund or any accurate 2022 tax returns.
  

  The reason why it has been 1.5 years since ****** last communicated with *** is because ****** defaulted on the refund and then ignored **** and the attorneys subsequent refund requests.   This combined with ******* BBB responses being inconsistent with the facts and their own BBB responses, *** has not experienced any good faith from ******* This is why *** is requesting a full refund of $10,727, which includes $2k in 2022 onboarding fees (this is fair since onboarding did not bring any value to ***).  
  

  Any work ****** did after the March 2023 complaint and May 2023 refund agreement resulted in 4 incorrect versions of the 2022 1120S Tax Return:  revenue, expense and distribution amounts kept changing.  ****** changed these amounts at their own discretion; *** did not insist on where any amounts were placed in the tax return.  *** did question when reimbursable expenses and revenue did not net out to zero or when amounts did not line up to the P&L and/or Windermere statement.  ****** did not provide any monthly accounting or bookkeeping in 2023. 
  ******* claim of $60k in tax savings is due to changing from a sole proprietorship to an *******  This is a widely known tax strategy, was originally recommended by Windermere and is not ****** secret sauce.  Nor would a $60k tax savings claim give license to have ****** overpay the *** by $10k.

  ****** has falsely accused *** of requesting a tax position that was too aggressive and potentially fraudulent.  ****** has failed to prove this.  Any aggressive or potentially fraudulent tax position would not be written on a financial statement,so confidentiality is not an issue here.
  

  Accuracy of Tax returns:
  Following ******* irresponsible tax advice would have caused ******* to overpay $103k to the *** ($10k + $75k + $18k = $103k).
  Please see attached email from ***************** outlining ******* 1120s error on page 1, noting the subsequent $10k *** refund amount on page 2. 
  

  Please see attached email $93k tax due ******* It is a 4/4/23 ****** email titled Action Needed! Taxes Due. It stated:
  1) 2022 $75k in estimated taxes. On 1/17/23 *** notified ****** that $63k in estimated taxes were paid so nothing was due.
  2) Q1 2023 $18k in estimated taxes.  *** did not have any revenue in Q1 2023, so no taxes were due.  Also, in Q1 2023 it was common knowledge that real estate had taken a sharp downturn from the 2022 boom and brokers were conserving cash flow.  Many brokers didnt know when their next closing would be. 
  3) ****** should have provided tax payment advice that *** that considered her actual circumstances, which ****** had full access to.
  

  Evidence: There is evidence that is not confidential and ****** was emailed a copy of it on 2/28/24 (with another request for the refund). Please again see attached email from ***************** outlining *******1120s error on page 1, noting the refund amount on page 2.  *** paid ***************** to audit and correct the errors in the ****** prepared 1120s due to our concerns not being addressed by ******* This documents ******* error without breaching confidentiality.
  

  ****** did not prove their previous 12/6/24 BBB accusation: Regarding the $10,000 *** overpayment, this occurred as a result of the customer insisting on including tax adjustments that were contrary to *** guidelines, despite our team explicitly advising against this course of action.   ****** has failed to prove **** insistence and ******* explicit advice against it.  The statement does shows ****** finally acknowledging there was the $10K *** overpayment. The statement also falsely accuses *** of insisting on an error that results in the $10k overpayment.  In fact, the opposite occurred: ******* emailed ****** that she would sign the return although ****** did not address ***s concerns around how reimbursed expenses were handled (see previously provided 8/18/23 email to ******). 
  

  In ******* 12/6/24 BBB response, ****** finally admitted to errors in the 1120s and blames ***: *** did not respond to requests for information and/or provided inaccurate information which led to material errors and/or delays in the P&Ls and 2022 1120s.  ****** has failed to prove this fabricated accusation. Instead, ****** changed their position to ultimately we could not reach a mutual agreement with ******* ****** *********** regarding the tax return.   KRMs new accountant, ***************** was able to correct the 2022 1120s using the same information ****** had.
  Customer provided data:  ****** had direct real-time access to all ******** accounts (****** had every withdrawal and every deposit). *** submitted ***** ********************* statement and the Windermere year-end statement (showing all commission income, Windermere expenses paid, and B&O taxes paid on commission income). In addition, *** provided monthly transactional data including reimbursed expenses and income.  ****** has failed to prove that any information was missing or inaccurate. ***************** was able to redo the 2022 1120s using the same information that ****** had.
  

  Tax strategy and risk:  *** asks that ****** outline the risk and tax strategy that would lead them to prepare a tax return with a $10k *** overpayment.
  

  Communication challenges and 3rd party involvement:
  Regarding ******* wanting to be removed from the day-to-day email threads and ****** problems:  As previously stated ******* delegated dealing with all the ****** problems to her business manager in January of 2023.  *** was candid to ****** when and why this happened.  In 2022,dealing with ****** problems was too stressful and took a tremendous amount of time away from **** clients and running her business which was unacceptable.  This is why it was delegated.  ******* can and will delegate as she sees fit.  ****** texted ******* at will and had unobstructed email access to her.  
  

  Regarding all declined meetings: leading into July of 2023 *** required all correspondence in writing because trust had been severely deteriorated. Example:  ****** said ****** B&O tax filings were delinquent since Q4 2021 because ****** was filing the returns, which is fabricated. ****** is not in the business of B&O tax filings.   The Head of Tax had unobstructed email access to ********* but did not use it.
  ****** needs to take responsibility for their late and inaccurate financial statements and tax returns.   The Head of Tax had unobstructed email access to ********* but did not use it.  *** provided all needed access and documentation.
  

  Oregon Quarterly Tax Filings:  On July 6, 19, and 24 ********* declined to provide Oregon Tax Filing information to ****** because on previous filings, ****** failed to follow the simple instructions on the one-page form.  It was faster for *** to fill out the form than to try and teach ****** again. 
  

  ESD Subpoena:  ******** last email to ****** in August 2023 noted that it was not yet resolved.  *** resolved it without further involvement from *******  
  

  Misunderstandings Regarding Reimbursed Expenses:  July 2023 was the first *********** stated 2022 reimbursed expenses needed to be recognized as income and expenses for B&O purposes and at a federal level to net out to zero. This was new information to *** and we believe new to ****** as well since the 3 versions of the 1120s ****** prepared before this did not have reimbursed expenses in income. The final ****** prepared 1120s had reimbursed expenses in income but not in expenses so it did not net out to zero.  That was the problem. The Head of Tax had unobstructed email access to ********* but did not use it.  A meeting with the Head of Tax would not have repaired the relationship, it was unrepairable. The 1120s was repairable by moving reimbursed expenses from distributions to expenses to net out to zero, which ****** refused to do.  In theory, ****** wouldnt even need a conversation with *** about reimbursed expenses if deposits (that werent obvious refunds) were reconciled with Windermere statement commission income.  The discrepancy between the two would match up to the reimbursed expenses that *** submitted monthly and again in a summary email in April of 2023.  Any line-item questions could be handled by email.

  1099s and B&O Tax Concerns:
  1099s: *******1099 process was the most time consuming and cumbersome in history.  ****** did not keep vendor records from the previous year and provided 2 different spreadsheets that were not consistent,had double entries and had obvious Corporations on them.  *** has had seamless 1099 preparation with previous and current bookkeepers.
  

  B&O Taxes:  ******* statements are false.  Airbnb B&O filings were delinquent dating back to Q4 2021 and ****** had not filed B&O taxes on reimbursed expense income in 2022 or notified *** to do it. ****** declined to respond on why this B&O filing was delinquent.  *** was well above B&O small business thresholds which ****** could see clearly on the Windermere statements.
  

  Privacy and Supporting Documentation:   *** is not asking for confidential financial statements to be disclosed to document ****** claims.  The below fabricated claims would not even exist on financial statements because they are about ***s behavior and ethics. 
  1) requesting a tax position that was too aggressive and potentially fraudulent
  2) insisting on including tax adjustments that were contrary to *** guidelines, despite our team explicitly advising against this course of action
  3) did not respond to requests for information and/or provided inaccurate information which led to material errors and/or delays in the P&Ls and 2022 1120s. 
  

  Conclusion:
  ****** is not acting in good faith and did not deliver any high-quality services of measurable value to ***.  Instead, ****** drained ******* and her small business of valuable time that will never be recovered.  ****** promised an $8,075 refund after *** submitted a written complaint, then refused to pay it.  *** agreed to pay $3k for the 2022 1120s and 1040 tax returns assuming they would be accurate, ****** did not provide this.  When *** escalated the refund request to the BBB, ****** admits the 1120s is incorrect and falsely blames *** for their work.  Then ****** falsely accuses *** of requesting a tax position that was too aggressive and potentially fraudulentand insisting on including tax adjustments that were contrary to *** guidelines, despite our team explicitly advising against this course of actionand not responding to requests for information and/or provided inaccurate information which lead to material errors and/or delays in the P&Ls and 2022 1120s.   ****** failed to prove these accusations because they are fabricated.  Then, ****** falsely states that these claims (which are behavior based) can be proven by sharing confidential financial statements. This is not in good faith.  *** is seeking a refund in the amount of $10,727.

  
  Sincerely,
  
  ********* *****

  

  Business Response

  Date: 01/27/2025

  We appreciate the opportunity; however, we respectfully decline participation in arbitration.
  
  Please let us know if any further action is required on our part.
  

• Initial Complaint

  Date:09/09/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I began working with this company in October of 2022. I hired Formations Corp. to create my ***, handle the payroll through the *** and file my business and personal taxes. The tax filing process with them has been a nightmare. Although they promise customer service and making the tax process easy, they are completely inexperienced and unprofessional. There is no customer care at all. Everything is handled through EMAIL. Heaven forbid if you miss an email, no one will follow up with you to make sure that it was received or if you have completed and understand the provided the steps in the email. You can schedule a call, but if you don't know what you are supposed to be doing, how do you know what questions to ask? From calling the department of unemployment for my employee number myself (because they wouldn't do it!) for tax filing to depositing payroll into the incorrect bank account and having me navigate ** and IRS websites to figure out what taxes have been paid (even though I have sent in verification of taxes paid), this company does NOTHING to help their "clients" navigate the complicated tax system. My personal return was incorrect and I had to file my own personal return because of the multiple errors on multiple revisions. I requested that the personal return be submitted ASAP, but that request was completely ignored. I did not receive a refund for the incorrect returns they provided. Thankfully I have done my own taxes in the past and know how to check! I would have underpaid thousands of dollars in taxes because of their errors. Most recently, I am receiving notices in the mail from ** saying that I owe money and my taxes have not been filed for business with them, which of course the company is saying is my fault and not theirs.

  

  Business Response

  Date: 09/25/2023

  Hi ******, we are sorry to learn you are dissatisfied with the communication. We value your business and our goal is always to make taxes less stressful. We have an excellent team of professionals, and we believe weve responded in a timely matter to all of your requests. We would like to note there are multiple ways to get in contact with our team, including:
  
  1. Replying to emails from Onboarding or Customer Success
  2. Creating a support ticket from your account dashboard
  3. Using the live chat function on the customer knowledge base or website during business hours or using it to leave a message after business hours that our team will respond to when back in office
  4. Calling our 800 number, which puts you in direct contact with customer success
  5. By joining our weekly hit-the-expert Zoom meeting with our ************ Services members
  6. By joining our monthly customer-only webinars with live Q&A
  
  To take an extra step, weve updated the "Tickets, issues, escalations, and how to get in touch with Formations" page in our knowledge base with even more detailed instructions on the communication options listed above. As a customer, you have exclusive access to this page. We hope this helps you navigate communication options a bit easier.
  
  We were not made aware of the complaint mentioned above nor received any refund requests, and we are still actively servicing your account.
  
  If you could please reach out to your customer success team or ******************************** we would love to discuss this with you and get more information, especially regarding any possible issues or dissatisfaction with your personal return; it is imperative for our team to be made aware of this. We also need more information about what you would like refunded. 
  
  Thank you and we look forward to hearing from you.

• Initial Complaint

  Date:08/25/2023

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I provide my Personal Bussiness information to formation corp in exchange to provide me with services for my Bussiness and I have not received no services at all ! All I received was $3,520 deducted from my account . I am Requesting my refund. and no longer wish to have your services that you never have provided. I have tried calling *************** and ********************* and both phones state that they are no longer in service . and I also tried calling ************ and not been successful. I have emailed ************ and no response , I have Emailed formation corp and no response as well.I would like my Refund and never have to deal with this again . This Is Fraud to charge people and not provide services.

  

  Business Response

  Date: 09/11/2023

  We are sorry to hear of your frustrations and are committed to getting back in good standing with you. As you are still a customer, we are striving to find a resolution that is fair to both parties and have been in contact directly.
  
  We would like to note that a dispute was filed with the bank regarding the charge to your account, and the bank sided in our favor after agreeing we have fulfilled our contractual obligations to date.
  
  From beginning service on your account in May, we have worked diligently to serve your business and made multiple attempts to contact you both by email and by phone, the majority of which were unsuccessful.
  
  As we continue to work with you, we hope to earn back your trust and are confident in our ability to deliver tax savings for your business and a positive customer experience in due time. We would like to note there are many ways to get in contact with our team, as listed below:
  
  1. Replying to emails from Onboarding or Customer Success
  2. Creating a support ticket from your account dashboard
  3. Using the live chat function on the customer knowledge base or website during business hours
  4. Calling our 800 number, which puts you in direct contact with customer success
  5. By joining our weekly hit-the-expert Zoom meeting with our ************ Services members
  6. By joining our monthly customer-only webinars with Q&A
  
  We are happy to review the contract with you and assist in whatever way is needed to help you follow the Formations playbook to receive the most value.
  
  We hope that in the near future, we will have built a wonderful partnership in which we are receiving active participation, and Formations is delivering exceptional results for you and your business.
  
  Thank you,
  The Formations Team

  Customer Answer

  Date: 09/21/2023

  WHY WOULD IT BE AS IF IT HAS BEEN RESOLVED? I HAVE NOT RECEIVED MY REFUND OF $3,520 OR ANY RESPONSE.

  Customer Answer

  Date: 10/03/2023

  Good afternoon ****, I disagree with this decision . And Appreciate to continue with my dispute I never gave Formation permission to withdraw money from my account. And they have not provided any services for me.
  I Tried calling several times and the phone has been disconnected.Also while I had **************** from ***** Fargo on the line and I called from my son's phone and phone numbers were disconnected to the persons that I had Contacts with.I do not understand how and why bank would  agree with your decision if i went in person several times and they told me to continue to file a dispute and complaint.
  

  
  

  

  Business Response

  Date: 10/20/2023

  Hello, we would like to provide an update of this complaint. As seen in the Dispute attachment, the bank found our evidence compelling to deny *****'s bank dispute. She committed to a year with our company and paid for the year in full and we fulfilled all obligations on our end, but ***** repeatedly chose not to engage in our services, or respond to our communications. The "support" she shared was an email to an individual who is no longer with our company and does not serve as sufficient evidence to request a refund in full. We are a technology platform, supported by experts, but she has full access to the platform 24/7 as a customer which has multiple contact options such as live chat, creating a support ticket, calling, and more, which she never used. 
  
  We do not feel it is fair to issue a complete refund on baseless grounds. We don't believe buyers remorse or a change of plans, or whatever the case may be, is sufficient for this request from a company that has invested time and resources into servicing the account.
  
  Nonetheless, our reputation as a trusted partner is important to us. And we all know how damaging negative online reviews can be, and sometimes they provided a narrow or specific point of view as to the reality of the situation. In an effort of good faith to the community we serve, real estate agents in particular, we've offered ***** a partial refund which she has accepted. Please see screenshots of acceptance. 
  
  This situation is unfortunate, and we thank the BBB for going through lengthy efforts to get both sides of the story and review all evidence. We all know the weight online reviews carry, both for better and for worse, and we appreciate the the effort of a fair and honest assessment. 

  Customer Answer

  Date: 10/26/2023

   
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  In Receiving the partial refund of $1,900  would please over night check to:

  *********************, *****************************************;*******,** 78504

  checking business account has been closed. and Bank will not re-open a closed account

  
  Sincerely,
  
  *********************