Client Billing Question

[mvp2885]

Hello everyone. If you are not an EA, or CPA, or attorney, do you get involved in helping clients write up notices to the IRS when they receive certain CP notices? I did my AFPS and will sit for my final EA part 2 when examination opens back up in may, hopefully getting my EA by June. But in our tax office, there seems to be the norm of "if they are our client we don't charge them for helping them translate or understand CP notices or helping them write responses back got the IRS." I can't seem to find anything under part 3 (representation) that would seem to be out of legality if we charge them? Any advice I would greatly appreciate. I know once I get my EA I will have unlimited representation. Thank you all!

[Twin Turbo Z]

If your fixing an error or omission on your part then I wouldn't charge. If its just a standard verification or something the taxpayer missed then yes, charge.

[mvp2885]

If your fixing an error or omission on your part then I wouldn't charge. If its just a standard verification or something the taxpayer missed then yes, charge.

That's what I thought. Thanks!

[TAXNJ]

Your engagement letter should explain what is/not covered in your preparation services.

as far as Representation see TheTaxbook 32-2
Representing taxpayers. The IRS has established the following representation rights for tax return preparers.......

[Lion]

Do follow the protocol set forth by your employer.

[mvp2885]

Thanks everyone for your kind responses.

[Twin Turbo Z]

Back when I worked for "a firm" it was standard policy never to charge the client for the preparation of an explanatory letter (using the firm's letterhead) in response to an IRS inquiry notice. Especially when (ahem!) the firm had made an error.
This was not "representation" but a common professional business courtesy. The clients were generally appreciative and any potential "loss of income" for not charging for such a letter was very often offset by the goodwill of a happy client who might later recommend the firm to others.
Of course. . .most things are different now. I wouldn't be surprised to see some tax pros now adding a surcharge for incidentals such as paper clips and staples.

With new clients, we require they bring in last years return. I see "storage charges", "technology charges", etc.. Some really strange ones. The "storage charge" gets me rolling

[Rapid Robert]

Helping a client write a response to a CP2000 letter, which the client signs and returns to IRS, is not representation, and there is no qualification or license required to do this, not even a PTIN. Whether you charge or not is up to you, there are no laws that apply that I am aware of, unless your state has some kind of blanket regulation of forms preparers, like NV. My engagement has always stated that I will render assistance with understanding and responding to CP2000 notices for tax years I prepared at no extra cost, but actual representation (compliance and collections) is separately billable (and I don't typically offer those services anyway, my clients rarely if ever need them).