Red flag

Review support costs extra

Help with a tax authority review can be priced separately. That is a legitimate choice if it is clear, and a problem if it is hidden or open-ended.

A red flag is a reason to ask more questions. It does not mean an adviser has done anything wrong. This page describes a practice in general terms and is not about any particular firm.

When it is a problem

  • The proposal says nothing about reviews, and you learn that support is extra only when a review arrives.
  • Support is charged by the hour with no estimate, no cap and no say for you in how much time is spent.
  • The headline fee was compared against other proposals that included support, so the comparison was not fair.
  • The adviser's help is limited to the claim as filed, and new questions are treated as new work at a new price.

When it is not a problem

  • The letter says plainly that review support is separate, gives a rate and an estimate, and you chose the lower fee knowing that.
  • The fee model is hourly throughout, so review work is simply more hours at the same stated rate.
  • The adviser includes a fixed number of hours of support and prices the rest, and the letter says so.
  • You have your own tax adviser who will handle any review, and you asked for support to be left out.

What to do

  1. Ask whether review support is included, what it covers, and for how long after filing.
  2. If it is extra, ask for a rate, an estimate and a budget that cannot be exceeded without your agreement.
  3. When comparing proposals, add the likely cost of support to any fee that excludes it.
  4. Ask who would do the review work and whether the working papers will still be available when a review comes.
The matching green flagReview support is in the price