[CPA's Fee Charge] Contingent Fees ↔ Ability-to-pay basis

안녕하세요. 고라소니입니다.

AICPA AUD 과목 시험을 준비하는데 도움이 되셨으면 하고 직접 정리한 내용을 공유하고 있습니다.

도움이 되셨다면 공감 버튼 한 번씩 부탁드려요.

 

■ A CPA’s fee might be charged on an ability-to-pay basis. 

○ 회사의 재정 상황에 맞게 Audit Fee를 정하는것은 괜찮습니다.

○ It is okay that CPA reduced usual audit fee by 40% prior to the audit because the client's financial condition was unfavorable.

 

■ Contingent Fees Rule

○ Fees can not be related to the CPA’s findings or the results of findings.

○ The Code prohibits accepting a contingent fee for preparation of an original income tax return.

-The Code prohibits accepting a contingent fee for preparation of an amended income tax return to claim a deduction that was inadvertently omitted on an originally filed return.

○ The Code prohibits accepting a contingent fee for performance of any service for an audit client.

- Any service includes a performance of consulting services for an audit client.

 

 

■ However, Contingent fee is permitted for representing a client in an IRS examination of the client’s federal (or state) income tax return.

○ A contingent fee also is permitted for representing a client who is (1) seeking a private letter ruling from the IRS or (2) lobbying with regard to the drafting of a statute or regulation.