TERMS & CONDITIONS FOR TAX PREPARATION ENGAGEMENTS
Terms and Conditions. This letter states the terms and conditions by which you (“you,” “client” or “your”) have engaged Savoy Bookkeeping and Tax Services ("Savoy," “We,” “us” or “our”) to provide certain tax return preparation, accounting and consulting services. To ensure a clear understanding of the separate responsibilities we and you have in this engagement, we ask all clients for whom returns are prepared or reviewed to confirm the following arrangements.
To protect you, the Client, this professional tax preparation firm follows accepted ethical procedures as specified by the Internal Revenue Code and/or applicable guidelines governing the conduct of professional tax preparers. After reading each statement below carefully, please acknowledge your acceptance by signing the bottom of this form. Thank you for your cooperation and understanding of the responsibilities we must accept as professional tax preparer.
The specified income tax returns have been prepared for me and/or my business at my direction by Michelle Savoy-Jones, EA through Savoy Bookkeeping and Tax Services, LLC. I have reviewed the completed returns and understand their contents and have received a copy of the returns. I realize it is my responsibility to include in my files all documentation necessary to substantiate all income, deductions,and credits reflected on the returns for at least 3 years. All information on these returns is true and accurate according to the information furnished by me to Savoy Bookkeeping and Tax Services, LLC. Nothing has been added or deleted by the preparer that would understate my tax liability. All taxable income has been reported, including any bartering, any partnership interests, any sales of business or personal assets, and all interest and dividend income from all sources.
I have informed my tax preparer of any adjustments or correspondence between any taxing authority and me and/or my business during the tax year. I understand my professional tax preparer has based the entries on these returns according to present laws, regulations, and other applicable authority.
I understand that tax law and its interpretation is subject to continual change and therefore the rules and principles followed in the preparation of these returns may not be applicable for any other tax year. My tax preparer has indicated any aggressive applications to me and I understand such a position may be questioned or overturned in the audit process. I agree to hold my preparer harmless from any examination and possible reversal on this (these) issues.
Services. We will prepare your federal and requested state/local income tax returns based solely on information provided in the Taxpayer Client Profile or from subsequent requests, questionnaires and tax documents you submit. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of some of the information. We will provide questionnaires and worksheets to guide you in organizing the information we need to prepare your tax returns. You represent that the information you are supplying to us is accurate and complete to the best of your knowledge and that you have disclosed to us all relevant facts affecting the returns. Your use of such forms will assist in keeping pertinent information from being overlooked.
Client Responsibilities. Please note that it is your responsibility to ensure that all information necessary to prepare your tax return is included in your tax package or portal submission. Since the returns will be prepared based on the information you provide, you should closely follow the questionnaires and worksheets in assembling required information. You should retain all the documents, canceled checks, and other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. As the taxpayer, you have the final responsibility for the income tax return(s) and, therefore, you should review them carefully before you sign them.
Termination of Services and Refunds. If Savoy Bookkeeping and Tax Services begins preparing your return and you then terminate the engagement, you will be charged $200 for the work completed to that point. This applies to tax returns that have been worked on but not yet shipped to the client. For returns that have been completed but not delivered, the full tax preparation fee will be invoiced and charged. Savoy Bookkeeping and Tax Services does NOT issue tax preparation fee refunds regardless of whether the return has or has not been filed.
Requests for Missing Information. Savoy will attempt to request additional information required to complete your federal and/or state tax returns using the contact information provided on your Client Tax Profile. If we do not receive a response within 5 days from the first request for information, we may close your order and charge you for the time spent on your tax return(s) up to that point. Your documents will be archived and you will be notified so you can find an alternate tax preparer.
Revisions of Returns. Should a tax return require revision after completion through no fault of Savoy, a revision fee of $150 will apply. Any tax return requiring revision due to a legitimate preparation error will be revised at NO CHARGE.
Errors, Misrepresentations, Fraud, Illegal Acts, Theft. Savoy Bookkeeping and Tax Services will not attempt to discover errors, misrepresentations, fraud, illegal acts, or theft. Therefore, we have not included any procedures designed or intended to discover such acts, as we have no responsibility to do so. If you require assistance with this, we can put you in contact with a local CPA who can perform Audit and Assurance services for you. We will only render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns at an additional charge.
Professional Judgment. We will use professional 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 in accordance with IRS Circular 230 guidelines (see last page of Engagement Letter).
Standards. The Internal Revenue Code and regulations impose preparation and disclosure standards with noncompliance penalties on both the preparer of a tax return and on the taxpayer. Unless we have a reasonable belief that any tax position in your return will be sustained on its merits due to having substantial authority, a preparer penalty will be imposed on us unless that position has a reasonable basis and is adequately disclosed in the return. And, while we might be able to avoid a preparer penalty by adequately disclosing the return position, you might not have to disclose the position in order to avoid applicable taxpayer penalties. If we determine that we would be subject to a preparer penalty by delivering your return to you, you agree to either adequately disclose that position on your return or change the position to one that would not subject us to penalty. If you do not choose to change your position or adequately disclose so as to eliminate, in our sole opinion, our exposure to the preparer penalty, we, in our sole discretion and at any time, may withdraw from the engagement without completing or delivering tax returns to you. Such withdrawal will complete our engagement, and you will be obligated to compensate us for all time expended and to reimburse us for all out-of- pocket expenses through the date of our withdrawal.
Bartering Transactions, Charitable Contributions, Travel and Phone Expenses, and Business Usage of Autos. You should also know that IRS audit procedures will almost always include questions on bartering transactions and on deductions that require strict documentation such as charitable contributions, travel, and entertainment expenses and expenses for business usage of autos, computers, and cell phones. In preparing your returns, we rely on your representations that we have been informed of all bartering transactions and that you understand and have complied with the documentation requirements for your expenses and deductions. If you have questions about these issues, please contact us.
Tax Liability. The client is responsible for the payment of all taxes, penalties and interest.
Early Bird Discount - $35 discount. To receive this special, your tax return must be filed by February 15th.
Returning Client - $35 discount. To receive this special, you must be a client of more than 2 years and not eligible for the Loyalty Program. Your tax return must be filed by February 28th.
Loyalty - $70 discount. If you have been a loyal client for 5 years or more and your tax return is filed by February 28th.
Filing Deadline and Extensions. The filing deadline for federal Individual tax returns is April 17 and March 15 for Corporations (or the next business day when the due date falls on a weekend). We will file an automatic extension for taxpayer profiles and information received after March 1 for an additional charge of $75.
Savoy Bookkeeping and Tax Services will make good faith efforts to complete tax returns prior to the April 17 deadline. However, due to the high volume of returns received, the vast majority of returns received at Savoy after March 1, 2017 will be extended. Therefore, regardless of the date we receive your tax information, Savoy Bookkeeping and Tax Services cannot guarantee the completion and filing of tax returns before the filing deadline.
Extensions. If necessary, extensions will be prepared by Savoy Bookkeeping and Tax Services in accordance with the Filing Deadline and Extensions clause above. When no payment is estimated to be due or there is no estimated tax, we will prepare and file an extension on the client’s behalf. In situations where an estimated tax liability exists (if we receive the client’s tax information prior to March 25), we will provide the extension form and amount due for the client’s submission and payment to the appropriate tax authority. Extensions will be prepared based on the information in the tax organizer or client portal questionnaire as well as the supporting documents provided by you, the taxpayer.
If an extension of time to file is required, any tax that may be due with this return must be paid with that extension. Any amounts not paid by the filing deadline are subject to interest and late payment penalties when those amounts are actually paid. The client is responsible for making all required payments. If the tax organizer or client portal questionnaire and supporting documentation is received after March 1 and you have not filed your own federal and state extension(s), Savoy will prepare estimated extensions based on the information provided by you, the taxpayer. We will not request additional information for extension preparation. Please note that this may prevent you from incurring late-filing penalties, but you may incur late-payment penalties in the event you owe additional federal or state taxes when your return is complete.
Tax Preparation and Other Fees. Fees for tax preparation services will be based upon fixed fee package pricing that include most tax forms and schedules that are required for you to properly file your federal tax return as noted on the pricing sheet included in the client tax organizer and client portal Service Fees Engagement Letter. There are additional charges for tax forms not included in any of the packages, state and other tax returns prepared by Savoy.
If a federal, state, or qualified dependent return is requested, but actual preparation determines that there is no filing requirement, a “no filing requirement” fee of $85 will apply as indicated in the price sheet of the Organizer and Fees engagement letter. This fee is based upon time spent determining the filing requirement and will be decided by the Tax Accountant.
In addition, we are happy to review and comment on a return and relevant schedules that you have prepared. The fees for review and comment of returns not prepared by us, whether or not those returns are required to be filed, are also found in the pricing sheet (see Additions Fees in the Organizer and the Client Portal Service Fees engagement letter). All invoices are due and payable upon completion.
Mailing of Completed Returns. In the event the Mailing Information section of the Client Tax Organizer is left blank, completed returns will be sent to the original sender (i.e. client/spouse) via email.
Disclosure of Personal and Tax Information. Savoy makes all reasonable efforts to maintain the privacy of client personal and tax information. We will share your information only with our staff(including seasonal employees and independent contractors), our affiliated companies and service providers that give direct service to us on your behalf, and as otherwise permitted or required by law. Should we receive a request for the disclosure of privileged information from any third party, including a subpoena or IRS summons, we will notify you. In the event you direct us not to make the disclosure, you agree to hold us harmless from any expenses incurred in defending the privilege, including, by way of illustration only, our attorney’s fees, court costs, outside adviser’s costs, or penalties or fines imposed as a result of your asserting the privilege or your direction to us to assert the privilege.
Examination of Returns. Your returns may be selected for examination or review 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 assist you. If an examination occurs, we will represent you if you so desire; however, these additional services are not included in our fee for preparation of your returns and we will render additional invoices for the time and expenses incurred.
Receipt of Notices from Tax Authorities. Please fax any notice/letter received to us at fax number (602) 841-7848. In preparing your returns, we are not responsible for a taxing authority’s assessment of underpayment penalties or interest where this action results from erroneous, incomplete, inaccurate, or misrepresented information provided by you to us. We have no ability to audit your information or search for correct data.
We will review a notice/letter at no cost, however; should it be determined that the notice/letter did not result from an error on the part of Savoy Bookkeeping and Tax Services, there will be a fee of $95 for optional IRS assistance. Notice/letters received due to an error on the part of Savoy Bookkeeping and Tax Services will be resolved at no charge. Additionally, Savoy Bookkeeping and Tax Services will reimburse the client for any penalties incurred as a result of the error. We do not reimburse for additional taxes due or for interest.
Original Documents. Be sure to only send copies of your tax information - do not send any original documents to Savoy Bookkeeping and Tax Services (tax forms, statements, receipts, etc.). If we receive original documents, for security purposes, they will be photocopied and shredded after your return is complete.
Paragraph Titles. The paragraph titles used in this agreement are for convenience of reference only and will not be considered in the interpretation or construction of any of the provisions thereof.
If the foregoing correctly states your understanding, please sign and return the enclosed copy of this letter in the space indicated and return it with your client tax organizer and your supporting tax documentation to our office.
We want to express our appreciation for this opportunity to work with you. Very truly yours,
Michelle Savoy-Jones, EA
President & CEO
Savoy Bookkeeping and Tax Services
The foregoing is in accordance with my (our) understanding of your engagmeent to provide tax and accounting services and you are hereby advised that each item of income, deduction, credits, revenue or expense can be sustantiated by receipts, cancelled checks, or other documents. This information is true, correct, and complete to the best of my (our) knowledge. Further, it is my (our) understanding that these terms will continue to be in force for the succeeding years of our engagement.
I HAVE READ THIS ENGAGEMENT LETTER AND AGREE TO AND ACCEPT ITS TERMS AND CONDITIONS.