Level 10

Survey - your charges for work in a dispute

Forum|Forum|2 years ago
March 11, 2024
2 replies
7 views

I am rarely involved in disputes between partners. They (two partners) are disputing compensation going back two years. The attorney has been hired - by the corporation - to mediate the dispute. The attorney will be asking me for pro forma financials and tax information to help determine the proper compensation. This work will mainly be amending tax returns as if both were partners since 2022. I think the financial work will take me 3-4 hours. However, this could be drawn out and there might be conversations where I am involved which could add 2-4 hours.

For tax preparation I bill based on value. However, for this engagement I think I will bill for hourly services.

What would you charge?

Tax Talk

sjrcpa

Level 15

Hourly, at a higher than "normal" rate.

The more I know the more I don’t know.

BobKamman

Level 15

So is this a partnership, or a corporation? And is it a dispute between two shareholders of a corporation? Are you sure that both of them agreed to your being hired for this work? And who is your client, anyway? Seems to be like it's the arbitrator, so you need to find out if he is going to pay you or he is just assuming that the corporation will.

Many arbitrations involve a hearing, and you may be called as a witness. Do you know when and where the hearing would be held? Does your agreement provide for payment of preparation, travel and appearance time?

sjrcpa

Level 15

And you get paid in full before you get on the stand.

The more I know the more I don’t know.

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