- 26 Mar, 2021
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tax return analysis
Assume Jim agreed to pay half of your normal hourly rate for the first meeting, if the first 30 minutes is free. So at the end of the 2 hour meeting he would owe you $225. Assume you thoroughly discussed the pros and cons of the tax filing options, how to minimize tax problems for 2019 and beyond with his corporate tax return, and how Jim might be able to solve his 2010 tax problem.
How much should you quote for:
Preparation of the 2019 tax returns (personal and corporate)?
Preparation of 2020 and future tax returns ?
Solving his 2010 tax problem for “pennies on the dollar,” and how would you structure the fees:
hourly, with an up-front amount; and, if so, how much up front? Or,
flat fee, and if so, how much up front and how much over time assuming the case will take 24 months to complete? Or,
a flat fee expressed as a percentage of the reduction of the tax liability [note: a percentage fee is only permitted under IRS regulations (as reprinted in IRS Circular 230) when there is a known tax liability. Such a fee is not permitted if a tax return has not yet been filed and you are filing the tax return or consulting about a tax return to be filed; also see California Board of Accountancy’s official pronouncement on contingent fees: http://www.dca.ca.gov/cba/consumers/commission_fees.pdf