FEES

But read carefully, as many fees for business forms and services have increased or been added

ESPECIALLY READ THIS SECTION CAREFULLY IF YOU UNDERWENT A FORECLOSURE, DEED IN LIEU SURRENDER, SHORT SALE, LOAN MODIFICATION OR CANCELLATION OF CONSUMER DEBT.

WHEN YOU PAY US TO COMPLETE YOUR TAX RETURN, OUR BASIC FEES DO NOT INCLUDE THE FOLLOWING:

a) The completion of a cancellation of debt analysis under one of the following conditions:

1. An insolvency analysis is required. This will occur where a property which was a primary residence at the time of sale or foreclosure is involved, and the resulting cancellation of debt is either not a factor because only original loans used to buy the property are involved, or the resulting cancellation of debt is excluded by the Mortgage Protection Act of 2007. An insolvency analysis would only be required if the amount of debt being cancelled exceeds the amount of debt used to acquire, build or substantially improve the property. As an example, an insolvency analysis would be required where equity was refinanced out of the property to pay bills, buy a car or take a vacation and more is owed in debt than the amount of the original purchase price. Click here to find out why we charge an extra fee.

2. An analysis using the Qualified Real Property Business Indebtedness exclusion is required. This would be for the sale of a rental unless the rental was a converted personal residence of the client and the loans still on the property were the original loans used to buy the property for use as a residence.

b) Form 4797(Disposition of Business Property) which is charged at $50 per transaction. This is a required form for the sale of a rental property unless the rental was a converted personal residence of the client and the loans still on the property were the original loans used to buy the property for use as a residence.

c) Forms relating to like kind exchanges - if we are presented with a properly completed Form 8824 where you have entered all the values for the exchange, and we are not required to perform any calculations, then we will not charge an extra fee. If we have to do the calculations there will be a minimum additional charge of $350.

d) Initial set-up of newly acquired, or newly converted rental property -$50 per property

g) Extra time for complex returns - especially involving sales of securities (stocks, mutual funds, exercise of options) where complete basis information is not provided and we must calculate all or part of the basis ourselves is charged at $350 per hour. This also includes extra time to complete large self employment Schedule C Forms.

i) Returns for anyone who is not listed as a dependent on the client's return

j) Extra time required for the input of complex information, such as extensive securities transactions or complex Forms K-1.

WHEN YOU PAY US TO COMPLETE YOUR TAX RETURN, OUR BASIC FEES DO INCLUDE THE FOLLOWING:

1) All civil legal administrative representation and costs up to and including IRS appeals prior to the filing of a court case. This includes all routine audits.

WARNING: We are only able to represent you without cost during examination, or audit proceedings. We do not represent you during collections actions, because how you pay the government what you owe is outside the scope of what is on your tax return. Unless you have made prior arrangements with us so we can maintain a legal presence with the IRS, it is impossible to provide any legal representation after a notice of deficiency has been issued and the last date to petition the United States Tax Court has passed. The IRS only has to send this notice via Certified Mail. If you do not receive it, or choose not to receive it, this will make no difference. Once the last date to petition the Tax Court passes, all opportunities for legal remedies have passed and we cannot act as attorneys on your behalf. Please note this is not a change in our policy, but a clarification made necessary by clients who have ignored IRS notices until the first collections bill comes and then expect action from us. At that point we are powerless to stop the IRS because the legal remedies set forth in the tax code have expired. The only relief available will be for a client to send in documents to the IRS and hope for the best. This is called the audit reconsideration process and is explained in IRS Publication 3598.

2) For returns originating after June 15, 2009, representation before the United States Tax Court will require the advance payment of a single, flat, non-refundable minimum of $500 to cover costs. Legal fees will be arranged on a contingent basis. It is possible to have the government pay all of your attorney fees and costs but in order to do this you must respond immediately to IRS document requests. Failure to do this will require you to pay costs and fees yourself.

3) Representation before any United States District Court or the United States Court of Claims will require the payment of actual costs. Attorney fees will be arranged on a contingency basis. The costs must be paid prior to the filing of a complaint. It is possible to have the government pay all of your attorney fees and costs but in order to do this you must respond immediately to IRS document requests.

4) Representation before any appellate court will require the payment of actual costs. Attorney fees will be arranged on a contingency basis. The costs must be paid prior to the filing of a petition, complaint or appeal.

6) Unlimited email consultation during the year concerning the tax matter and tax year for which our fee was paid and with the same client who paid the fee. Telephone and office conference rates are available on request and may be arranged through office manager Lynn Kelly at lynn@timkelly.com.

7) Amended returns for any reason are included, unless the need for an amended return is caused by your delay or decision.

Example: You receive a late Form 1098 in the mail and you have already filed - there will be no charge to amend the return.

Example - You do not have all your information ready but insist on filing your return to obtain a quick refund - we will bill you at our regular hourly rate.

Example - You are granted a retroactive disability retirement - We will file amended returns for all years without charge.

The basic personal contact appointment fee, whether by mail, phone or in the office, will be $350.