Tax Consulting Contigency Fees
Started by YougGovCon · Aug 3, 2017 · 1 replies
- YOriginal post
YougGovCon
Aug 3, 2017 · 8y ago
Looking into allowability of contingency fees charged by a tax consulting firm. A tax firm provided advisory/consulting support for city property valuations. The amount paid to the tax firm was 25% of the tax savings associated with the reduction in property valuations. I can't find anything in FAR 31 would expressly disallow these types of fees. Agreement/SOW, invoices, and work product were retained to support FAR 31.205-33 Consulting costs requirements. The 25% contingency fee seems to be a standard/reasonable amount for these types of services based on online research.
Anyone with background or other advice?
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here_2_help
Aug 4, 2017 · 8y ago
You wrote a check to the consultants equal to 25% of the tax savings received. The taxes would have been allowable costs. You reduced allowable costs and saved the government money. The consultants' fees are allowable.