Terms of Service Agreement
Dear Client(s),
We appreciate the opportunity to work with you and advise you regarding your income taxes and other related matters. This letter is to confirm the arrangements with respect to the services which we will provide.
We will annually prepare your federal and state (if required) income tax returns from information you furnish us. You should note that in order to complete appropriate tax planning work on your returns, we require that all your information be provided to us no later than the date indicated on our deadline list. If we do not have all the information needed to complete your return by this date, an application for an extension of time to file will likely be necessary. This may require a tax payment to be made by you on or before the April filing date, in an amount approximating your unpaid tax liability. The exact final amount may differ upon review and completion of your delinquent documents. You assume responsibility for any differences in tax, including interest and penalties, arising out of the subsequently received information. Upon completion and receipt of the tax returns, you will be responsible for the timely filing of said returns. You have the final responsibility for the income tax returns and, therefore, should review them carefully before you sign and file them.
It is our understanding that unless we are informed in writing and engaged separately, you have fulfilled your filing requirements with respect to any Form(s) 1099 that you are responsible for filing for the year. By your signature below, you are confirming compliance with the 1099 reporting requirements.
It is our understanding, unless we are informed and engaged separately, that we will not prepare any forms relating to foreign entities and foreign transactions. By your signature below, you are confirming to us your required tax compliance, if any, for foreign accounts and/or investments. By your signature on this engagement letter, you are also confirming that you do not hold foreign financial assets with an aggregate value exceeding $50,000.
You understand that your income tax returns will be electronically filed through a secured third-party filing service. You may opt out of electronic filing if you so choose, for an additional printing fee (see fee chart).
Upon request we will be able to answer your inquiries on specific tax matters and to consult with you on income and estate tax planning, by appointment.
Our work in connection with the preparation of your income tax returns does not include any procedures designed to discover defalcation or other irregularities, should any exist. However, should we find any irregularities or unusual items we will bring them to your attention. We will render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns. If we discover any errors or omissions on a prior year return, we will bring that to your attention as well.
We will use our judgement in resolving questions where the tax law is unclear or where there may be conflicts between the taxing authorities’ interpretation of the law and what seem to be other supportable positions. We will resolve such questions in your favor if there is a reasonable belief that the position would “more likely than not be sustained on its merits.”
It is our understanding that all of the information submitted to us for the purpose of tax return preparation is true, correct and complete to the best of your knowledge and believe and that you have the necessary written support for that information. We will not audit or otherwise verify the data you submit, although we may ask you to clarify some of it.
By your signature below, you are confirming to us that unless we are otherwise advised, your travel, entertainment, gifts, and related expenses are supported by the necessary records required under the Internal Revenue Code. You are also confirming that you have receipts for all donations. Please note that you need a written letter of acknowledgement from a charitable organization for any donation of $250.00 or more on or before the date you file your income tax returns in order to claim a charitable tax deduction. As a last item, you are confirming to us that your business use of mixed-use property, such as computers or vehicles, is substantiated by a log of such use as to preclude the deduction of any personal expenses which may be related to such property. If you have any questions as to the type of records required, please ask us for advice in that regard.
Our fee for the above services will be billed upon completion of the returns. The fee will be based upon the amount of time required to complete the return, out-of-pocket expenses, the degree of responsibility we assume, and the value of services provided. Our invoices are due and payable upon presentation. If terms are necessary, all balances outstanding 30 days or more from the original billing date will accrue interest at 2% per month on the unpaid amount.
We invite you to visit our website at haightaccounting.com and take advantage of the information available relating to tax tips, deadlines, and pricing. We encourage you to advise us in advance of any major transactions you propose to undertake, in order that we may provide the greatest assistance in minimizing income tax burdens. Because tax rules change constantly, an earlier opinion expressed in connection with a transaction may not apply to one occurring at a later date. A fresh review of the tax consequences may be appropriate to obtain desired results.
This letter comprises the complete and exclusive statement of the agreement between the parties. If any provision of this letter is determined to be unenforceable, all other provisions shall remain in force.
Your returns are, of course, subject to review by taxing authorities. Any items resolved against you by the examining agent are subject to certain rights of appeal. In the event of an examination, we will refer you to a legal firm to represent you.
If the above fairly sets forth your understanding, please sign this letter and return it to us. You may submit this agreement at the time you furnish your tax information.
We are pleased to have you as a client and look forward to a long and mutually satisfying relationship.
Sincerely,
Haight Accounting Firm, Inc.