Don't Just Save on Taxes; Invest in Your Wealth
1. We will prepare your tax return using information you provide to us. We may ask for clarification of some items, but we will not audit or otherwise verify the data you provide. We will electronically file all tax returns that are eligible to be filed electronically, unless you provide us a written request to not do so. Any tax return that is NOT electronically filed will be given to you in a form ready for mailing, however, it is the CLIENT’S responsibility to mail or deliver the filing copy of the tax return to the tax authority.
2. FEES: Our fee for preparation of your tax return is based on a flat-fee minimum plus any additional charges based on the complexity of the return. All invoices are due and payable upon presentation. We will not file your tax return nor provide you a fileable copy of your tax return until all amounts due are paid in full.
3. It is solely the Client’s responsibility to provide information required for preparation of complete and accurate tax returns. You should keep copies of all documents and other data that support your reported income and deductions. They may be required in the future to prove the accuracy and completeness of the returns to the tax authorities. You are responsible for the content of all submitted returns therefore you should review them carefully before signing them.
4. Our work does not include any procedures to discover irregularities or missing items. If items are discovered missing or incorrect after the tax return has been filed, any additional work, including, but not limited to, the preparation of an amended (corrected) tax return, may require payment of additional fees unless all of the errors and omissions were wholly caused by us.
5. Any tax return we prepare will adhere to professional standards. We will not complete or sign a tax return for a client that causes us to have a conflict between the client’s request and professional standards. We do not provide any guaranty of a particular outcome or result in the preparation of tax returns. We must use our judgment in resolving questions where the tax law is unclear, or where there may be discrepancies between the tax authority’s interpretations of the law and other supportable positions. In order to avoid penalties, we will apply the “more likely than not” reliance standard to resolve such issues. Since severe penalties can be imposed for failing to disclose participation in what are known as “reportable transactions”, or other arrangements that the IRS has identified as potentially abusive, we will require that all such transactions be properly disclosed.
6. You acknowledge that the tax returns prepared under this engagement are designed for the sole use by the government agencies for which the returns are created. You agree to hold us harmless for any other use.
7. Your tax return may be selected for audit by a tax authority. Any proposed changes are subject to appeal. In the event your return is selected for examination, we can arrange to represent you before the tax authority. Such representation or defense is a separate engagement for which an engagement letter will be provided to you. Fees and expenses for defending the returns will be invoiced in accordance with the terms of the separate engagement letter.
8. At the conclusion of this engagement, we will return all original documents the Client has provided us. We will retain copies of records for a period of five years from the time we prepared your returns, unless a statute requires a longer retention period. This includes documents used to prepare your returns and a copy of the final tax return we prepared. At the expiration of the retention period, we will destroy the records. Clients should retain copies of all documents at least until the appropriate statute of limitations expires.
9. Federal law has extended the attorney-client privilege to some, but not all, communications between a client and a client’s tax preparer. The privilege applies only to non-criminal tax matters that are before the IRS or brought by or against the U.S. government in a federal court. The communications must be made in connection with tax advice. Communications solely concerning the preparation of a tax return will not be privileged. These rules might not apply to state level examinations. In addition, your confidentiality privilege can be inadvertently waived if you discuss the contents of any privileged communication with a third party, such as a lending institution, a friend, or a business associate. We recommend that you contact us before releasing any privileged information to a third party.
10. If we are asked to disclose any privileged communication, unless we are required to disclose the communication by law, we will not provide such disclosure until you have had an opportunity to argue that the communication is privileged. You agree to pay any and all reasonable expenses that we incur, including legal fees, that are a result of attempts to protect any communication as privileged.
11. If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to litigation. The costs of any mediation proceeding shall be shared equally by all parties.
12. Client and Next Tax representative both agree that any dispute over the services provided herein and any fees charged will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final. IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION. Any financial disputes concerning the preparation of a tax return will be limited by the amount paid to Next Tax. In no event will Next Tax be liable for any incidental damages or an amount greater than the amount actually paid to Next Tax.
13. By signing this agreement either physically or electronically, you agree that this letter correctly expresses your understanding of our engagement and that you wish for us to begin this engagement.
We appreciate the opportunity to work with you. Please call if you have any questions or need additional information.
FEDERAL INFORMATION DISCLOSURE CONSENT
Section 301-7216 of the Internal Revenue Code specifically governs the use and disclosure of Tax Return Information. Some states may also have additional laws and regulations related to use and disclosure of the same information. We use your Tax Return Information only in accordance with those applicable laws and regulations to prepare and assist in preparing your tax return, to provide services associated with preparing your tax return, and to provide you with other products and services you specifically request or consent to.
We use the information you provide (discussed above) to complete services you request. That is, we may use your information to show you additional products (if applicable), personalized tax tips, and other relevant products and services based upon your Tax Return Information. These offers may come from us or a third-party service provider. We may use your contact information to share with you other NEXT TAX products and services such as Tax Planning or financial advisory services. As permitted by law, we may also use the information you provide to address questions submitted to our customer or technical support systems, to send updates or security alerts, marketing messages, or to provide notification of new products, services, enhancements, and promotions.
We may also use the information we collect to monitor and investigate fraud, identity theft, and other illegal activity and to personalize and improve our Services.