When Are Contingency Fees Permissible in Rendering Tax Services

question 6

Short Answer

When are contingency fees permissible in rendering tax services?

---

Definitions:

Fair Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability, or an unidentified firm commitment, that is attributable to a particular risk.

Cash Flow Hedge

A type of hedge that protects against the variability in cash flows arising from a particular risk, such as interest rate movements or currency fluctuations.

Foreign Exchange Loss

A loss that occurs when the value of a foreign currency declines in relation to the domestic currency, affecting transactions involving foreign currencies.

Merchandise

Goods that are bought and sold by businesses in the normal course of operations.