For most individuals and business that have filed or plan to file a claim under the BP Settlement, significant accounting work is involved: compiling general financial records and tax information; choosing baseline years for comparison; showing changes in revenue patterns over time; establishing causation.
Suffice it to say that most claimants are going to want professional accounting support. Fortunately, the terms of the BP Settlement take this into consideration and offer reimbursement for “reasonable and necessary” accounting fees incurred in preparing a claim. Here’s how it works:
For Individual Claimants
BP will reimburse at $85 per hour for the preparation of the claim; and at $130 per hour for supervision of that preparation. For claims over $10,000, the total amount of accounting fees cannot exceed 2% of the total economic damage compensation amount; for all other claims, the limit is $200. An absolute upper limit of $6,000 applies to all claims.
For Business Claimants
BP sill reimburse at $110 per hour for claim preparation and $160 per hour for supervision. The accounting fees cannot exceed 2% of the total economic damage compensation amount for claims over $50,000. All other claims are limited to $1000. There is an overall accounting reimbursement limit of $50,000.
For All Claimants
For accounting fees to be reimbursed, the services must be provided or supervised by a Certified Public Accountant, or an enrolled agent or an individual with an IRS Preparer Tax Identification Number. The professional must also have all required state professional licenses and be active and in good standing with state regulatory bodies.