Fees

Question 1

What two conditions must be present for a member’s spouse to be able to charge a commission or referral fee in connection with the member’s attest client?

Answer 1

1. )The spouse’s activities are separate from the member’s.

2. )The member is not significantly involved in the spouse’s activities

Question 2

For which kind of client may a member in public practice never perform services on a contingent fee basis?

Answer 2

Attest client

Question 3

List two permitted contingent fees in the tax area

Answer 3

Any of these fees:

1. )Representing client at a revenue agent’s examination
2. )Filing an amended return claiming a refund where the issue is the subject of a test case
3. )Filing an amended return or refund claim in an amount ensuring the claim will be reviewed by authorities
4. )Representing a client in obtaining a private letter ruling or influencing the drafting of a regulation or statute

Question 4

Name the code’s exception(s) to what would normally be treated as a contingent fee.

Answer 4

A fee fixed by courts or other public authorities. Or, in tax matters, if determined by the result of judicial proceedings or agency findings

Question 5

Define a “contingent fee.”

Answer 5

An arrangement where no fee will be charged unless a specified result is attained or where the amount of the fee is otherwise dependent on a particular finding or result