Revised rules of practice before IRS regarding fees.
In addition, the revised rules contain the following new provisions on fees for tax returns:
Until now, a practitioner was barred from charging an "unconscionable fee." The rules of practice now have been expanded to specifically address contingent fees for tax returns. A contingent fee for preparing an original return is expressly barred. A contingent fee can be charged for an amended return if the preparer reasonably anticipates that the amended return will receive substantive review by the IRS, determined on a case-by-case basis. A contingent fee includes a fee based on - a percentage of the refund shown on a return; - a percentage of the taxes saved; or - the specific result attained.
Caution: Any contingent fee arrangement must also satisfy any ethical requirements that may be imposed by the practitioner's State Board of Accountancy, the AICPA and the relevant state society of CPAs.
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|Author:||Josephs, Stuart R.|
|Publication:||The Tax Adviser|
|Article Type:||Brief Article|
|Date:||May 1, 1995|
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