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Policy Statement
(Last Revision: January 14, 2008)
Edelman Tax Services is the tax consulting division of Cyprus-based
PYXOS Management Consultancy Ltd, and is managed by Mr. Les Edelman,
an American tax lawyer with degrees in Economics (UC-Berkeley) and Law (UCLA) and
14 years of experience in U.S. and international personal and corporate income tax law.
Edelman Tax Services provides a wide range of U.S. and international tax services, including U.S. & State tax consulting,
U.S. & State tax return preparation, and representation before the IRS. In addition, Edelman Tax Services provides
Hungarian tax services, including Hungarian tax advice, tax return preparation, and representation before the
Hungarian tax office (APEH).
This document summarizes Edelman Tax Services' policies and fees.
Location of Client Service
During the tax season, Mr. Edelman travels regularly to Budapest,
and occasionally to other European locations on an as-needed basis.
When an in-person consultation is not possible, clients are
successfully served through a combination of phone, fax, email and
post/courier communications.
Tax Return Preparation Process
Initial Interview: The first step in preparing your tax return is the initial interview. At this stage, we gather essential information about your filing status,
dependents, the types and amounts of your income items, potential deductions or adjustments, where you have lived
over the last several years, your employment/self-employment status, etc. This initial interview is best conducted by telephone, but providing
information by email is also satisfactory (see bottom of this page for a list of information that will help us gain an overview of your tax situation). Following this initial interview,
we will provide an estimate of the fees to perform the required work. If you agree to engage our services, we will send you an engagement letter to confirm the arrangement.
Collection of Further Information: Once you have engaged us to prepare your tax returns,
we will provide a list of additional information required to prepare a complete and accurate tax return. We make efforts to tailor our information requests to each client's particular situation, but if you feel we have missed a relevant issue, please inform us immediately.
In addition, we would like to have copies of your income reports (e.g., W-2, 1099's, etc) for the relevant tax year, as well as copies of your last one or
two years' tax returns, especially if you have a any sort of carryover (capital loss, foreign tax credit, minimum tax credit, NOL, etc).
Filing Extensions: The federal deadline for taxpayers residing abroad is automatically extended
two months to June 16, 2008 (no form need be filed). The various U.S. states often have
similar extensions, but this must be determined on a state-by-state basis. If you are unable to send us all of your tax information by May
15, then we strongly advise you to request an extension by filing Form 4868,
which will extend your return filing deadline to October 15, 2008.
We can prepare the Form 4868 for you, or send you the blank form at your request.
Delivery/Submission of Returns: We offer electronic filing of U.S. tax returns, and encourage clients
to e-file whenever possible. When e-filing is not allowed or desired, the client must submit a paper return. In the case of a paper return,
either we can print the return and send it to the client (via post or courier), or we can e-mail a PDF file of the return for printing and
assembly by the client (the IRS no longer require the preparer's manual signature).
In all cases, we provide the client with detailed filing instructions.
For e-filing, we charge a fixed $25 e-file service charge. When a paper return is mailed to a client, we re-charge postage or courier charges to the client.
U.S. Tax Return Preparation Fees
Our fee to prepare your U.S. tax return will depend primarily on its complexity, which
is based on several factors such as the number of IRS forms and schedules required, the quality and organization of your data,
and the difficulty and time required to resolve any substantive tax issues that arise while preparing the return.
We endeavor to provide an accurate fee estimate before preparing a tax return, and
in most cases the fee initially quoted will be the final amount billed. However, occasionally additional information
or issues arise in the course of preparing a return which complicate matters to the extent that a fee adjustment
is warranted. We make best efforts to notify clients of these situations as soon as possible after we discover them and to
discuss any proposed fee adjustment.
We use the following guidelines to estimate our tax return preparation fees:
Federal Tax Returns:
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Basic Return: $500 to $750
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Moderately Complex Return: $750 to $1,250
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Highly Complex Return: $1,250 +
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Special IRS information reports pertaining to foreign entities (e.g., Forms 5471 & 8865) are subject to
separate fees, which generally fall in the $500 to $750 range.
More complex reports will command higher rates, e.g., $750 to $1,500.
We are able to prepare these forms based on financial statements provided in English, French, Hungarian, Serbian, Croatian, Czech and Romanian.
Financial statements in other languages will generally need to be translated to English.
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State Tax Returns: For State income tax returns, we generally charge a fee equal to 25% of the related Federal return fee.
E-Filing & Out-of-Pocket Expenses: We charge a fixed fee of $25 to transmit an e-filed tax return. Costs such as telephone and postage are generally re-charged to the client.
Discount for Certain Individuals: We provide a fixed 10% discount for U.S. government employees,
educators, religious workers, and any client with less than $30,000 in gross income (before exclusions) for the relevant tax year.
Other discounts are occasionally made on a case-by-case basis.
Discount for Large Engagements: When returns are to be prepared for multiple years at the same time, we generally offer a 5%-per-year discount from standard rates
(capped at a maximum discount of 25%).
Tax Consulting Fees
Tax consulting encompasses advice, planning, legal research, and review of tax returns prepared by the client or a third party, etc.
Mr. Edelman's consulting rate is generally $400/hour. However, lower rates or discounts
may apply, depending on factors such as the size/nature of the engagement, the client's income level and corresponding ability to pay, or a long
history of client service.
Out-of-pocket costs such as telephone and postage are also re-charged to the client.
Hungarian Tax Services Fees
Our standard fee for preparation of a Hungarian personal income tax return is $500, or $400 if a U.S. return is prepared for the same client.
Preparation of quarterly tax installment calculations are generally charged at $50 per installment calculation (thus, $200 per year, for 4 quarterly calculations).
Hungarian personal income tax returns for 2007 are due by May 20, 2008.
Hungarian tax consultations, or assisting clients at the Hungarian tax office, are charged at hourly rates as described above.
Payment of Fees
We currently accept only personal U.S. bank checks or wire transfers.
Detailed payment instructions will be included with our invoice.
Please make all checks payable to the order of "PYXOS Management Consultancy Ltd."
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Information Requested to
Establish Engagement and Estimate Fee
Your full name, birthdate, and social
security number:
[same information needed for spouse, if married]
Mailing address:
Email address:
Best phone number to reach you:
Names and birthdates of children (or other dependents):
If you are married, is your spouse a U.S. citizen or
a U.S. greencard holder?
FOR ALL THE FOLLOWING QUESTIONS PROVIDE SEPARATE
INFORMATION FOR YOURSELF AND YOUR SPOUSE [provide spouse's information
only if your spouse is a U.S. citizen, U.S. greencard holder, or you
have made (or will make) an election to treat your nonresident alien
spouse as a U.S. tax resident and to file a joint U.S. tax return]:
When did you leave the U.S. to make your home abroad?
Where have you lived for the last 3 years (provide places
and dates)?
If not obvious from the above, did you move (not just
across town) in 2007?
For whom did you work in 2007? If you were self-employed,
describe briefly the nature of your work and where you perform it.
Was your earned (work) income for 2007 less than $85,700?
Did you (or will you) pay any foreign taxes in or for 2007?
Do you own or rent your home overseas? If you rent, did your total 2007 foreign housing costs
(rent, utilities, etc, but not including pay TV or phone) exceed $13,700?
Describe briefly your sources and estimates of
non-earned income (i.e., investment income such as interest, dividends,
etc)
Did you have any of the following in 2007: extraordinary
medical/dental expenses, U.S. state/local taxes, charitable contributions
(to U.S. charities), U.S. real estate taxes or mortgage interest, or
unreimbursed employee busines expenses?
Do you own real estate anywhere? If so, where is it located, and do you rent it out?
Did you contribute to, or take distributions from, an IRA or any
other type of pension or retirement plan? If so, provide basic information.
Approximately how many days, if any, did you spend in the U.S. in
2007?
Do you have an ownership interest in any of the following? If so,
provide basic information.
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U.S. or foreign partnership |
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foreign corporation |
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U.S. or foreign trust (as grantor or beneficiary) |
Do you (or your spouse if applicable) have a financial interest in any foreign (i.e., non-U.S.) bank/financial account(s)?
Do you (or your spouse if applicable) have signature authority over any foreign financial account(s) in which you DO NOT have a financial interest? (for example, you have control over an employer's or relative's foreign financial account).
Any other interesting or unusual information that you think may affect
your 2007 tax situation?
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