Charging for eic and actc

[ttbtaxes]

Over the many years that I have been practicing, I have consciously made a choice to reduce my exposure by excluding the type of clients I take on. That comes with its own cost of less work and therefore less income.

I've run as fast as I could from clients who could potentially "poison the well". People with Schedule Cs that historically have losses and EITC are two I decided not to do to begin with or drop once they met that profile. Where I practice, the income levels cause AMT issues rather than EITC.

We all have our ox to gore.

[Rapid Robert]

IRS cannot regulate fees

Any preparer fees in any way, shape, or form related to amount of refund (credit) is a seriously large "NO!!"FE

That became no longer true over 2.5 years ago. In general, IRS can only regulate practice before IRS, not return preparation. And Circ. 230 only applies to a select subset of preparers anyway.

From tax update bulletin published by TheTaxBook (TTB). Specifically, they write in summary, (Ridgely, U.S. District Court for the District of Columbia, July 16, 2014):

"The court issued a permanent injunction against IRS for regulating contingent fee arrangements with regard to ordinary refund claims."

[Twin Turbo Z]

Over the many years that I have been practicing, I have consciously made a choice to reduce my exposure by excluding the type of clients I take on. That comes with its own cost of less work and therefore less income.

I've run as fast as I could from clients who could potentially "poison the well". People with Schedule Cs that historically have losses and EITC are two I decided not to do to begin with or drop once they met that profile. Where I practice, the income levels cause AMT issues rather than EITC.

We all have our ox to gore.

Must be the blue west coast and east coast Some of us live in the rust belt where the past 8 years has ruined it !! Oh sorry, I was not very PC. Its a joke !!!! or is it ???

[TAXNJ]

That became no longer true over 2.5 years ago. In general, IRS can only regulate practice before IRS, not return preparation. And Circ. 230 only applies to a select subset of preparers anyway.

From tax update bulletin published by TheTaxBook (TTB). Specifically, they write in summary, (Ridgely, U.S. District Court for the District of Columbia, July 16, 2014):

"The court issued a permanent injunction against IRS for regulating contingent fee arrangements with regard to ordinary refund claims."

Yes, but what do you mean by "And Circ. 230 only applies to a select subset of preparers anyway."

thanks

[Rapid Robert]

Yes, but what do you mean by "And Circ. 230 only applies to a select subset of preparers anyway."

thanks

I mean, IRS tried to make Circ. 230 apply to all preparers (RTRP) and was shot down by the courts.

[Justataxguy]

I don't know where ttbtaxes practices, but it is certainly not in the rural south. With the expansion of EIC into the $50,000 income level, some 85% of the population in my town and surrounding countryside is within this income level. Good, solid livable homes can be bought here for less than $80K, and "middle income" is a job between $12 and $15 per hour.

Pretty much the same in my area.