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What is the typical pricing structure for tax planning services when the service results in a client saving $100,000 in taxes?
Is it usually a combination of a base service charge and a percentage of the tax savings, or solely a percentage of the tax savings?
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Tax planning is different from tax filing. So tax planning is not under circular 230 contingent fee restriction. Is it right?
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You said you saved a client $100,000. How did you save them money if a return is never filed using that advice? Tax advice and tax prep is intertwined, isn't it?
Slava Ukraini!
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@IRonMaN wrote:
Have you checked out circular 230 regarding contingent fees?
I hate to disagree with you, but despite what many people think, Circular 230 does not apply to tax preparation.
In 2013/2014, the Loving vs IRS court case ruled that Circular 230 does not apply to tax preparation (it applies to things like representation), which resulted in the IRS not being able to regulate all tax preparers.
https://law.justia.com/cases/federal/appellate-courts/cadc/13-5061/13-5061-2014-02-11.html
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The Loving v IRS case makes no mention of "enrolled agents." The plaintiffs were not EA's. You can prepare tax returns without being an EA (or CPA, or lawyer). But if you choose to apply to IRS for EA status, are you agreeing to accept Circular 230 rules, including those that apply to return preparation?
Incidentally, the District Court judge in Loving, whose decision was upheld by the DC Circuit, was James Boasberg, who has been in the news recently.
