How to Compare Tax Advisor Proposals
Compare proposals by the decisions they address, the work they deliver, and the person responsible for implementation. Put both firms on the same entity list, tax years, filing scope, and service period before comparing the total fee.
The buying decision
Compare proposals by the decisions they address, the work they deliver, and the person responsible for implementation. Put both firms on the same entity list, tax years, filing scope, and service period before comparing the total fee.
Build a common scope
Start with an entity chart and a short list of decisions: a property acquisition, owner compensation, estimated payments, retirement funding, or a sale. Ask each firm to state which decisions it will analyze and which require another professional. A promise of access to an advisor is different from a documented recommendation with assumptions and a deadline.
Separate deliverables from access
Look for a written analysis, projections, action list, assigned owners, and a process for reviewing completed work. Record the number and type of meetings, but do not use meeting count as a substitute for substance. Ask whether the return preparer receives supporting calculations and whether the advisor answers implementation questions after delivery.
Example: the cheaper quote can have a larger total
Suppose one illustrative proposal charges $4,000 for analysis and another charges $7,000 for analysis plus implementation meetings and projections. If the first separately requires $2,000 for implementation and $1,500 for projections, its comparable total is $7,500. These are arithmetic examples, not market rates or AE quotes. Even after matching fees, check staff qualifications and whether the work fits your facts.
Questions to resolve before signing
Ask what happens if records are incomplete, if a recommendation is unsuitable, or if a pending deal changes. Request the additional-work approval process, renewal terms, cancellation terms, and secure document intake instructions. Keep the final scope and every approved change with your engagement records.
Apply this to your AE proposal
Ask AE to identify the entities, years, deliverables, implementation support, and filing work in your proposed engagement. Review current published fees and confirm exclusions in the agreement. General website content does not establish that a strategy applies to your circumstances.
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