MTW wrote:

- quote -

Sure. A contingent fee is one that depends on the
successful prosecution of a case. If I file a 1040x for a
client and realize that IRS may or may not approve it,
that's pretty contingent. I could hardly charge client if
IRS disapproves, right? (I'm assuming there is reasonable
cause and basis for sustaining the case on it's merits, or
something like that).

Otherwise we are free to charge what we can get away with,
literally speaking. For a working mother with EIC form and
8812 and two state returns, I might want to charge 100$ as
compared with a retired military man with plenty of income
and just needing to file a short form. But my fee schedule
is a bit more realistic that that.

Anyway, we can charge what we want to, and also accept what
clients we want to, even to the extent of discrimination.

(Oh boy. will that raise a firestorm?)

Cheer$,
Harlan Lunsford, EA n LA

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Do either of the following tax preparation billing methods
violate the "contingent fee" restrictions set forth in
Circular 230 Section 10.27 (applicable to all preparers) or
AICPA Rule of Conduct 302 (arguably applicable to CPAs only)
???

METHOD ONE: The base fee for the return is determined by a
sliding scale that varies with income. The higher the
income, the higher the fee. "Income" for this purpose is
defined as "line 22" of the return in question.

METHOD TWO: A surcharge based on a percentage of the amount
by which itemized deductions exceed the standard deduction
is added to the preparation fee.

Note that in both cases the fee appears to depend on the
"findings or results" of the service rendered. I assume that
these billing methods are used in ALL cases and not just
when some form of "value billing" might be justified. It is
not clear to me whether the devotees of these methods
EXPLICITLY DISCLOSE them to their clients.

Comments ???

MTW

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