A contingent fee is:
A)always allowed by Circular 230
B)a fee that is out of line with the value of the service provided
C)a fee based on a percentage of a taxpayer's refund on a tax return
D)all of these are correct

Question

Quizplus · Accepted Answer

A contingent fee, as defined by Circular 230, is a fee that is based on a percentage of the refund amount from a tax return. Circular 230 does not always allow contingent fees; it has specific rules governing when they are permissible. A fee being out of line with the value of the service provided is a separate issue and not specifically what defines a contingent fee.

A Contingent Fee Is