Example – the IRS audits a self-employed consultant for 1 tax year. Typical hours for this type of audit is about 12 hours. Estimated fees in this case, approximately $6,000.
Flat Fees – offered whenever possible.
Flat Fee Matters
Foreign account disclosures ($6,500 and up)
Tax return preparation ($2,000 and up)
Tax investigations ($2,000 and up)
Tax planning ($2,500 and up)
Example – John has 4 foreign bank accounts that have not been disclosed to the IRS. He decides to file a streamlined disclosure with the IRS. The accounts are relatively simple bank accounts. Flat fee in this case, $6,500.
Contingent Fees – based on amount saved. Fee will vary on amount owed, complexity and difficulty.
Contingent Fee Matters
Tax disputes and litigations
Penalty abatement cases
Example – Jane owes $90,000 to the IRS after an audit. The audit is appealed and the bill is reduced to $30,000 (a $60,000 savings). Law Office charges 1/3rd of the saved amount, or $20,000.