Is TaxPlanIQ’s ROI Pricing Method Legal? Does It Violate IRS or AICPA Rules?

No — the ROI Pricing Method is a value-based pricing approach that can be structured consistently with IRS and AICPA guidelines.

The Concern

The IRS and AICPA restrict contingent fee arrangements in certain tax matters — meaning practitioners generally cannot set a fee on the back end based on the exact tax savings produced on a client’s return. These rules exist to protect objectivity and prevent conflicts of interest.

Why the ROI Pricing Method Is Different

The ROI Pricing Method is a value-based, upfront fee structure. The fee is determined before work begins, based on the projected value of the engagement. It accounts for four factors — Complexity, Urgency, Risk, and intangible Benefits (the CURB factors) — not the final dollar amount saved on a return.

You are pricing the work and the value proposition. You are never charging a percentage of actual tax savings after the fact.

The key distinction is that the ROI Pricing Method is designed as an upfront value-based pricing approach rather than a fee tied to the final tax outcome or a percentage of actual tax savings.

AICPA Recognition

The AICPA has featured the ROI Method of Value Pricing at their “Reimagining Your Tax Practice: Pricing and Billing Strategies” event and is actively sharing it with members as a best practice for advisory pricing.

Additional Resources

• Forbes Finance Council article by Jackie Meyer, CPA: The Ethical Dilemma of Hourly Billing and What to Do Instead

• Full methodology overview: What Is the ROI Pricing Method for Tax Planning?