(This must be signed prior to preparation of the entity tax return, by an authorized representative for the entity)

 
We are pleased to have this opportunity to assist you with your income tax return preparation.  This agreement confirms the understanding between you and Hampden Hills Tax Service, Inc., hereafter known as HHTS, concerning tax services we will provide.  We will prepare the federal and state income tax returns from the information you provide to us. We will not audit or verify the information you submit, although we may ask you to clarify it. We are responsible only for the preparation of the income tax returns. We return all original documents and give you a complete copy of the tax return.  For the purposes of this agreement, the word “Entity” means all corporations, partnerships, multiple member LLCs, non-profits, trust (form 1041), estates (form 706), and decedent estates (form 1041). 

We require records to be provided for extremely high audited areas of the tax return or if we cannot get the numbers on the tax return to agree with your records. We also require all of the following in order to prepare your return:  A Profit and Loss (P&L), a Balance Sheet, a Statement of Cash Flows (if available), a form with a breakdown of all equipment, assets, furniture, and vehicles purchased during the year, W-2 forms and 1099 Forms – if applicable, if you have W-2 and 1099 forms, we need the W-3 and 1096, and if you have rental a income and expense sheet for each rental.  We may require bank statements, if we cannot get your numbers to agree on the tax return.

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 belief and that you have the necessary written support for that information.

By providing your signature below, you are confirming to us that unless we are otherwise advised: your expenses and if applicable mileage records are supported by the necessary records required under the Internal Revenue Code; your business use of mixed-use property, such as computers and 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.

You should note that in order to complete appropriate tax preparation and timely filed tax returns, we require that all information for S-Corporations & Partnerships that are using a calendar filing year must be provided to us no later than March 1st of each year.  For Estates, Trust, and C-Corporations that use a calendar year, we must be provided your tax information no later than March 30th of each year.  If you submit paperwork after March 1st or March 30th, we do try and complete all returns by the due date, but if the information is submitted after those dates for your respective entity, then there is no guarantee that it will be done without an extension being needed.  If your entity uses a fiscal year, we require your information to be provided by the 30th of the 3rd month after your ending fiscal year, or an extension will have to be filed.  In saying that, we may, depending on other circumstances, have to file an extension even if you did provide your tax information before the timeline described above.  We always to all we can to not file an extension. 

If we do not have all the information needed to complete your return by the above date, it may be necessary to file an application for an extension. This may require a tax payment made by you by the due date of your tax returns.  S-Corporation and Partnerships do not normally owe anything, since they are pass-through entities.  Corporations, Trust, and Estates, who file as a calendar year filer and owe on the return, the payment is due, even if an extension if filed, by April 15th, or if extended, the due date of the return, in an amount approximating your unpaid tax liability. The exact amount may differ upon receipt of any subsequent information necessary to complete the return that we receive after March 30th. You assume responsibility for any differences in tax, including any penalties and interest, 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.

We will use our judgment to resolve questions in your favor where the tax law is unclear or where there are conflicts between the taxing authorities' interpretation of the law and what seems to be other supportable filing positions. Your return is 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 be available to represent you at our normal billing rates.

The IRS allows tax preparers as third-party designees, to communicate with them on behalf of their clients by indicating so on the face of the tax return. Unless instructed by you otherwise, we will answer affirmative to the question that allows us to communicate on your behalf with the IRS.

As part of our tax return process, we require each of our clients to do the Intake Form for the tax year we are preparing.  We also request that certain clients fill out different worksheets depending on their specific tax circumstances.  We use those forms to be more efficient and to help identify possible deductions that may potentially be overlooked. By signing below, you acknowledge that if you do not complete the intake accurately and/or requested worksheets, you understand that you could miss deductions, miss income not reported on information forms you gave us, or we could answer a question on your tax return incorrectly based on the incorrect information you provided. Also, we may require more time to prepare your tax return if we have missing information on the intake or worksheets. Submitting these worksheets will also help us minimize the cost of our services we provide to you.

When you provide us with your phone numbers, there may be times we send text notifications to you, including but not limited to: appointment reminders and important due dates. We will not send marketing communications via text messaging. By signing below, you agree to allow us to send text notifications to you.

Law Changes: Congress can change the law at any time and make it retroactive to the beginning of any prior year. After a law passes, IRS then has to apply the law and that application of the law can look very different than people think, what we hear on the news, or what politicians say.  A change in the law may mean you have to amend your prior returns or redo a return that has been finished, but not filed yet. We charge to amend returns since it is a completely new return, but if we prepared the original return, we charge at a discounted rate.  We also charge to redo a return.  Congress is constantly talking about law changes, but until it is actually law, we do not use or calculate it into the taxes, nor do we delay finishing a return.  Something is not a law until it passes both houses of congress and the President signs it.  The final versions of bills are normally very different than what the news media or politicians say, because of that, accountants would never finish taxes if we waited on laws to pass. We finish taxes as the law is on that day. If the law changes the next day, the return will have to be redone if not picked up or amended once filed.

Fees: Fees for our services will be based on forms that are on your return, how many forms we have to input into the software, and on the amount of time required to prepare your returns, at our normal billing rates, plus any out-of-pocket expenses. Our form fees are subject to change from year to year. If we have given you an estimate, the estimate is an average based on what you have told us you would have. The final amount might be higher or lower than quoted. Payment for taxes and/or services is due when work is completed by HHTS, regardless of an extension being filed. Payment is also due when work has been done but has not been completed, through no fault of HHTS, and/or we have not had contact with you for 60 days. If you want us to try and take our fees from your refund and we allow that service, there is no guarantee that we will be able to take any/all of the fees from the refund. If we are unable to take all or part of our fees from your refund, then you are responsible for paying the balance.

Once we start a return, if you choose to not have us complete the return, we still charge for what we have done and our time. Our minimum charge in this situation is $65.00.

If your taxes are being handled via mail, email, or our portal, then we will send your e-file forms to you with our fee for our services. Once we receive your e-file forms and payment, we will send your completed copy of the tax return and any original documents back to you. If you email us your documents, we do not return those, since they are copies. We cannot e-file your taxes with a payment due on the return. If you handling everything via mail, we will send you your invoice once the tax is completed with your e-file forms. Once payment is received, we will send your taxes and your copy to you. Since we cannot mark a mailed return complete without payment, keeping your documents and return until your e-file forms and payment comes in helps us to ensure your return is not missed being marked completed, which is an important step.

By signing below, you agree that you are personally responsible for any and all payments due to Hampden Hills Tax Service, Inc. for services provided for you.

Entity Return Minimum Fees (Federal & State)

The minimum fee for an original C-Corp tax return is $500.

The minimum fee for an amended C-Corp tax return (we prepared the original) is $125.00.

The minimum fee for an amended C-Corp tax return (we did not prepare the original) is $525.00.

The minimum fee for an original S-Corp tax return is $475.

The minimum fee for an amended S-Corp tax return (we prepared the original) is $125.00.

The minimum fee for an amended S-Corp tax return (we did not prepare the original) is $500.00.

The minimum fee for an original Partnership tax return is $500.

The minimum fee for an amended Partnership tax return (we prepared the original) is $125.00.

The minimum fee for an amended Partnership tax return (we did not prepare the original) is $525.00.

The minimum fee for an original Trust & Decedent Estate tax return (Form 1041) is $300.

The minimum fee for an amended Trust & Decedent Estate tax return (Form 1041) (we prepared the original) is $125.00.

The minimum fee for an amended Trust & Decedent Estate tax return (Form 1041) (we did not prepare the original) is $325.00.

Fees for Non-Profit Returns, you must ask us about.

The minimum fee for Homeowner’s Associations is $125.00

The minimum fee for a consultation appointment is $65.00.

The minimum fee for a letter written is $65.00.

The charge for hourly services connected to taxes, for example, tax bookkeeping $65/hour.

The tax bookkeeping for a tax return is not the same thing as the monthly bookkeeping fee we charge or offer. This is a bookkeeping charge for us to add up receipts or items so we can prepare your return.

Hourly services connected to taxes are tax bookkeeping, calculating the basis of property, research for tax positions or elections, audits, going through client receipts, calculating basis for partners or shareholders in their respective companies, going through documents to find what applies to a tax return, consultation appointments, and time spent on the phone getting information or assisting clients. We allow each client a total of 20 minutes of all combined calls on the phone for their tax returns without charging them.

Late Fees: After 30 days, payment is past due and is subject to a $20.00 late fee. The entire balance includes all related late & collection fees as well as any other fees incurred. HHTS charges a 9% interest rate on past due invoices compounded monthly. Checks returned for non-sufficient funds are subject to a $25.00 fee. If court action is required, court fees, attorney fees, and a $50.00 collection fee will be added to the total amount owed to HHTS.

Also, by signing below, you give us your permission to electronically file an applicable tax return(s) and authorize us to enter a Personal Identification Number (PIN) on your behalf. If you choose to electronically sign your tax returns, electronic filing documents, and any other correspondence with Hampden Hills Tax Service, Inc. your initials and signature below constitutes your permission to accept signing electronically. This does not mean you are signing the returns by signing this agreement, but authorizing us to use your electronic signature if and when you do sign your return(s) electronically. All electronically filed returns go through an IRS-approved 3rd party and your signature below is your acknowledgment that you understand that and give us permission to file them through the 3rd party.

Legally, we are not allowed to open your mail for you. If you receive tax documents in the mail, please open your envelopes for us prior to dropping off your documents.

We cannot sign taxes for clients and no tax can be e-filed without valid signature(s) prior to e-filing the tax return. THERE ARE NO EXCEPTIONS!

It is the responsibility of the client to inform HHTS of any tax filing requirements in other taxing jurisdictions. We file a federal and a state return for your home state. If we notice, when preparing your return, that you are required to file another state return, then we will inform you that it has to be filed, but is not our responsibility to find that information.

It is the responsibility of the client to inform HHTS if they have any foreign bank accounts or foreign assets. This is very important and has to be disclosed on a tax return and other taxes might be due as a result.

FBAR Note: HHTS does not prepare the FinCEN 114 Report of Foreign Bank & Financial Accounts (FBAR). The return is not a tax return and must be filed by April 15th of each year to FinCEN. It is to report information for any individual with ownership, joint ownership, or signature authority over one of several accounts, investments, foreign pensions or mutual funds, or foreign life insurance policies when the aggregate total value of all the accounts is over $10,000 on any day of the year. Since this is not a tax return, we do not file it. It is the responsibility of each customer to report and file this. Failure to do so is extreme including extreme penalties. We do ask questions for forms that we put on your tax return in reference to assets more than $10,000, but we do not screen or discuss the FBAR. You do not want to miss filing this form if you are required to do so.

Corporations, LLCs, & Partnerships: Corporate Transparency Act/Beneficial Ownership Reporting. New starting in 2024, is a new reporting requirement that is not a tax return, but does affect all corporations, LLCs, and Partnerships. Assisting you with your compliance with the Corporate Transparency Act (“CTA”), including beneficial ownership information (“BOI”) reporting, is not within the scope of this engagement. You have sole responsibility for your compliance with the CTA, including its BOI reporting requirements and the collection of relevant ownership information. We shall have no liability resulting from your failure to comply with CTA. Information regarding the BOI reporting requirements can be found at https://www.fincen.gov/boi. Consider consulting with legal counsel if you have questions regarding the applicability of the CTA’s reporting requirements and issues surrounding the collection of relevant ownership information.

Preparer: We cannot guarantee which preparer will do your taxes and preparers can change from year to year. We do attempt to have the preparer you ask for do your taxes, but we are responsible to get your taxes done as soon as possible and your tax might have something that someone else in the office has a specialty in and the return will be passed to that preparer to make sure you get the most tax savings.

Mailed Returns: If you have not selected to e-file your return(s) with our office or if your return is not allowed to be e-filed, because of a restriction due to IRS, a state, or U.S. Territory, you will be solely responsible to file the returns with the appropriate taxing authorities. Review all tax-return information carefully before signing the return(s). We do not mail any tax information to the IRS, a State, or a U.S. Territory. Customers are solely responsible to sign, date, and mail those returns.

Payment Due on Return: If there is a payment due on your return and you have not chosen to have that amount debited from your account, you are solely responsible to mail that payment to the proper agency or filing it online.  Some states require amounts to be paid by debit or paid online.  The IRS does not allow corporations to mail payments to them, but that payment must be paid on EFTPS.  Also, sometimes if you pass certain thresholds of amounts due then you will be required to pay amounts due either by debit or paid online from that point onward.  In those instances, the state will not accept a mailed-in payment.  If we advise you that this requirement applies to you and you choose to not have us debit your payment, then you are solely responsible for paying it online.  

Tax Savings: HHTS and its employees also offer other services including financial and insurance services. In the course of preparing your taxes, we will notice things that can save you money on your tax return. Some of those things include financial and insurance-related items. Unless you request otherwise, we will acknowledge that your signing of this document means you want us to discuss these items with you. We will in no way try to sell you our products, but simply let you know that you can save money if you do them or have them. From there, if you want them, you can get them anywhere that sells them. If you choose, on your own, to ask us about our products, then we will discuss our products with you.

Gervase Financial Service, Inc. and Hampden Hills Tax Service, Inc. both operate from the same location, have the same employees, and have the same owners. Hampden Hills Tax Service, Inc. is our legal name, but our trade name is Hampden Hills Tax & Financial.

You must be 18 years old to sign this agreement.

Please note that this letter defines our respective duties and responsibilities relating to your engagement with our firm. If you do not understand any of the terms of this agreement, please call so we can review them with you.

PLEASE REVIEW AND SIGN:

If this letter is in accordance with your understanding of the terms of this agreement, please sign and return it to our office. We require a signed letter to be in our file prior to beginning tax preparation.

I affirm that the information I provide to HHTS is true, complete, and correct to the best of my (our) knowledge.

Notwithstanding anything contained herein, both the accountant and the client(s) agree that regardless of where the client is domiciled and regardless of where this agreement is physically signed, this agreement shall have been deemed to have been entered into at the office of Hampden Hills Tax Service, Inc. Located at 101 N. Blair Street, Vinton, VA 24179, USA. Roanoke County shall be the exclusive jurisdiction for resolving disputes related to this agreement. This agreement shall be interpreted and governed in accordance with the laws of Virginia.

The entity which I represent has adequate records to support the information provided to our accountant for our tax return(s).

By signing below, I am personally responsible for the payment of all invoices and amounts due to Hampden Hills Tax Service, Inc.  Even though I am signing on behalf of the entity, if the entity does not pay, I personally will pay all amounts due to HHTS.