Partnership Tax Prep Service Agreement
Thank you for selecting Affordable Tax Prep & Bookkeeping Services to assist your Partnership with tax compliance for the year. The purpose of this letter is to confirm the terms of our engagement and the services we will provide. You received this letter because we understand you are the person responsible for the tax matters of the partnership.
We expect to perform the following services:
Prepare the federal, state, and local income tax returns with supporting K-1 schedules for the Partnership return only. Individual returns are separate. Our work about the preparation of your income tax returns does not include procedures to verify your representations, discover defalcations, or other irregularities. We must use our judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities’ interpretations of the law and other supportable positions. We will apply the “more likely than not” reliance standard to resolve such issues avoid penalties that might be assessed against us as return preparers. You agree to honor our decisions regarding disclosure of return positions to avoid or mitigate penalties. Penalties of as much as $100,000 can be imposed on the corporation for failing to disclose participation in “reportable transactions,” that is, certain arrangement the IRS has identified as potentially abusive. We will insist that all such transactions be properly disclosed. The law also includes penalties that may be imposed when taxpayers simply understate their tax liability. If you would like information about those penalties, please call this office. Because a Partnership is an entity whose tax items are generally reported by its partners, any penalty for substantial understatement of tax relating to Partnership items will be imposed at the Partnership level. Management is responsible for proper recording of transactions in the accounts, safeguarding of assets, and substantial accuracy of the financial records. Because you have final responsibility for the returns, you should review them carefully before you sign and file them, and send tax reporting information (K-1s) to the partners.
To keep our prices low, we have designed our fees to cover all costs associated with filling the return for you as well as the amount of time it takes to file such returns. We also believe that you should not have to pay extra depending on the form you use, so we have “flat rate pricing” to allow you to know the cost of preparing your return upfront. All invoices are due and payable upon presentation. Tax returns will not be filed until full payment is made.
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.
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. To affirm that this letter correctly summarizes your understanding of the arrangements for this work and your agreeance to our filing fee, please sign.
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Document Name: Partnership Tax Prep Service Agreement
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