Markups on covered services and IRS scrutiny

Markups on covered services and IRS scrutiny

I am interested to know if anyone has experienced IRS scrutiny of services markups in instances where the services are “covered services” under Rev. Proc. 2007-13, but the taxpayer chooses to markup the services using a method (e.g., the cost of services plus method, or the CPM) that provides a more favorable tax answer. Thanks.

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