
Start-up R&D Tax Credit Question - Dwolb
An outside accounting firm has informed us we can count a percentage of engineering salaries in 2016 toward a payroll tax credit that can be used in 2017.<p>I&#x27;m concerned their fee is too high for the work. The cost is &lt;50% but &gt;30% of the credit so it&#x27;s in the end the engagement is worth it.<p>Does anyone know what this type of advice typically costs on an average hourly rate?
======
soloadventurer
I'm a CPA. We love to engage on a contingent fee basis where we collect a
percentage of credits approved. I once had a client that agreed to it, and we
ended up collecting hundreds of thousands in fees for a few hours of work.
They did not sign the same engagement the subsequent year, but insisted on
time incurred.

If I was you, I would insist on time-incurred and refuse contingent fee. Ask
them for their standard charge-out rates, insist on a minimum 20% discount on
those rates, and ask them to provide you with a estimated time budget. They
won't like it, but they'll accept the engagement because they will still make
money. If they don't accept, then choose a different service provider.

~~~
Dwolb
Thanks for the advice it gives me confidence in negotiating a bit. Any idea
what a partner would bill versus an associate in Chicago?

