1. (a) A certificate or registration holder shall not perform for a contingent fee any professional services for, or receive such a fee from, a client for whom the certificate or registration holder performs services requiring independence under §501.70 of this chapter (relating to Independence).
2. (b) A certificate or registration holder shall not prepare an original or amended federal, state, local or other jurisdiction tax return for a contingent fee for any client during the period in which the licensee or the licensee's firm is engaged to perform any of the services referenced by subsection (a) of this section and the period covered by any historical or prospective financial statements involved in any of the referenced services. Fees are not contingent if they are fixed by courts or governmental entities acting in a judicial or regulatory capacity, or in tax matters if determined based on the results of judicial proceedings or the findings of governmental agencies acting in a judicial or regulatory capacity, or if there is a reasonable expectation of substantive review by a taxing authority.
3. (c) A certificate or registration holder shall not perform an engagement as a testifying accounting expert for a contingent fee.
4. (d) The prohibitions outlined in subsections (a) and (b) of this section apply during any period in which the certificate or registration holder is engaged to perform any of the services referenced by subsections (a) and (b) of this section, and the period covered by any historical or prospective financial statements involved in any of the referenced services.
5. (e) A certificate or registration holder shall otherwise comply with the provisions of §501.70 of this chapter (relating to Independence).

Source Note:The provisions of this §501.72 adopted to be effective June 11, 2000, 25 TexReg 5338; amended to be effective April 7, 2004, 29 TexReg 3474.