10.27—Fees.
(a) In general.
A practitioner
may not charge an unconscionable fee in connection
with any matter before the Internal Revenue
Service.
(b) Contingent fees—
(1)
Except as
provided in paragraphs (b)(2), (3), and (4) of
this section, a practitioner may not charge a
contingent fee for services rendered in connection
with any matter before the Internal Revenue
Service.
(2)
A practitioner may charge a contingent fee
for services rendered in connection with the
Service's examination of, or challenge to—
(ii)
An amended return or claim for refund or
credit where the amended return or claim for
refund or credit was filed within 120 days of the
taxpayer receiving a written notice of the
examination of, or a written challenge to the
original tax return.
(3)
A practitioner may charge a contingent fee
for services rendered in connection with a claim
for credit or refund filed solely in connection
with the determination of statutory interest or
penalties assessed by the Internal Revenue
Service.
(4)
A practitioner may charge a contingent fee
for services rendered in connection with any
judicial proceeding arising under the Internal
Revenue Code.
(1)
Contingent fee is any fee
that is based, in whole or in part, on whether or
not a position taken on a tax return or other
filing avoids challenge by the Internal Revenue
Service or is sustained either by the Internal
Revenue Service or in litigation. A contingent fee
includes a fee that is based on a percentage of
the refund reported on a return, that is based on
a percentage of the taxes saved, or that otherwise
depends on the specific result attained. A
contingent fee also includes any fee arrangement
in which the practitioner will reimburse the
client for all or a portion of the client's fee in
the event that a position taken on a tax return or
other filing is challenged by the Internal Revenue
Service or is not sustained, whether pursuant to
an indemnity agreement, a guarantee, rescission
rights, or any other arrangement with a similar
effect.
(2)
Matter before the Internal
Revenue Service includes tax planning and
advice, preparing or filing or assisting in
preparing or filing returns or claims for refund
or credit, and all matters connected with a
presentation to the Internal Revenue Service or
any of its officers or employees relating to a
taxpayer's rights, privileges, or liabilities
under laws or regulations administered by the
Internal Revenue Service. Such presentations
include, but are not limited to, preparing and
filing documents, corresponding and communicating
with the Internal Revenue Service, rendering
written advice with respect to any entity,
transaction, plan or arrangement, and representing
a client at conferences, hearings, and
meetings.
(d) Effective/applicability date.
This section is applicable for fee arrangements
entered into after March 26, 2008.