Individual Tax Prep Service Agreement
We appreciate the opportunity of working with you and advising you regarding your federal and state individual income taxes. To ensure an understanding of our mutual responsibilities, we ask all of our clients for whom returns are prepared to confirm the following arrangements.
1. We will prepare your federal and state individual tax returns. These returns will be prepared from information which you will furnish to us. We will not audit or make any other verification on the data you submit, although it may be necessary to ask you for clarification of some of the information. We will furnish you with a checklist to help you in gathering the necessary information (please note this list is not comprehensive, and any forms you are unsure about should be submitted to us prior to our preparing your tax forms). In the event of an audit by a taxing authority, you will be required to provide the documentation for all items in question to the taxing authority. It is the taxpayer’s (you) responsibility to obtain/retain all documentation that supports your tax liability.
2. It is your responsibility to provide all the information required for the preparation of a complete and accurate tax return. You should retain all documents, cancelled checks and other data that form the basis of income and deductions for at least the period of the statute of limitations (typically 3 years, but can be unlimited in certain situations). You should also retain documents that support items carried over into open years, such as cost basis information, nondeductible IRA’s, net operating losses, etc. This information may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You have the final responsibility for the income tax returns; therefore, you should review them carefully before you sign them. If for some reason, you believe your returns have not been received by the taxing authorities, (i.e., didn’t get your refund or they haven’t cashed your check), then please contact us.
3. Our work about the preparation of your income tax returns does not include any procedures designed to discover errors or omissions by you, fraud, misrepresentations, defalcations and/or other irregularities, should any exist. We will render such accounting and bookkeeping assistance as determined to be necessary only for the preparation of your income tax returns. It is your responsibility to provide us with accurate, truthful information for use in preparing your tax forms.
4. We will use our professional judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authority’s interpretation of the law and other supportable positions. To avoid penalties, we will apply the “more likely than not” reliance standard to resolve such issues. You agree to honor our decisions regarding the need to make protective disclosures in your returns. Unless otherwise instructed by you, we will resolve such questions in your favor whenever possible. Penalties of as much as $100,000 can be imposed on you for failing to disclose participation in “reportable transactions,” that is, certain arrangements the IRS has identified as potentially abusive. We will insist that all such transactions be properly disclosed.
5. The law provides various penalties that may be imposed when taxpayers understate their tax liability. The Internal Revenue Service also imposes penalties upon taxpayers and return preparers for failure to observe due care in reporting for income tax returns.
6. Your returns may be selected for review for any reason by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available upon request to help you resolve these issues.
7. However, such assistance is not included in our tax preparation fee and we will render additional fees for the time and expense incurred on a case by case basis. Moreover, the taxing authorities may correspond with you regarding your tax return. You agree to timely forward this correspondence to us for review and analysis. Additional fees may be charged depending upon the response required.
8. Our fees are based upon a standard rate schedule for the type of forms required to be filed. This way our clients know upfront what the cost is for preparing their returns. All invoices are due and payable upon presentation. Payment for services is due prior to us filing your tax returns.
Additional Charges will be imposed for the following:
Returned Checks – ATP&B may impose a $20.00 fee for any bounced checks.
Collection Fees – You will be responsible for all collection fees imposed if your account is sent to a collection agency for non-payment.
Non-Funded Payment – You are responsible for tax preparation fees if you choose a bank product and the money is not funded to ATP&B.
Interest Charges – To the extent permitted by state law, an interest charge may be added to all accounts not paid within thirty (30) days.
9. We will retain copies of records you supplied to us along with our work papers for your engagement for a period of three years. After three years, our work papers and engagement files will be destroyed. All your original records will be returned to you at the end of this engagement. You should keep the original records in secure storage. 10. Unless otherwise specified by you in writing (email is sufficient), we will create/generate a PIN for you that will be used as your signature on your tax forms (only applies to electronically filed tax forms — Beginning Jan. 2011, ALL returns prepared MUST be e-filed).
If the foregoing fairly sets forth your understanding, please sign. Thank you for your trust in our professional tax preparation services.
Leave this empty:
If you have questions about the contents of this document, you can email the document owner.
Document Name: Individual Tax Prep Service Agreement
Agree & Sign