• Tax Engagement Agreement

    Tax Engagement Agreement

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  • Subject:TAX RETURN PREPARATION ENGAGEMENT

    Haro's Business Solutions is pleased to provide you with the professional services described below. This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide.

  • Scope of Engagement:

  • We will prepare the agreed upon federal and state income tax returns for you for the tax year ended      

  • Choose Type of Return to be prepared.        
                        
                   

  • We will only prepare the returns listed above unless given authorization by you to prepare additional returns. We will prepare your tax returns based on information and representations that you provide to us. We will not audit or otherwise verify the data you submit to us, although we may ask you to clarify some of the information. We will prepare the tax returns solely for filing with the Internal Revenue Service (“IRS”) and applicable state and local taxing authorities. The above-mentioned returns are not intended to benefit or influence any third party, either to obtain debt or equity financing or for any other purpose other than the purpose intended by the taxing authorities.

    As a result, you agree to indemnify and hold our firm including without limitation any of its partners, principals, shareholders, officers, directors, members, employees, agents or assigns harmless with respect to any and all claims arising from the use of the tax returns for any purpose other than filing with the IRS and state and local tax authorities regardless of the nature of the claim, including the negligence of any party.

  • Your Responsibilities

  • You are responsible for determining your state or local tax filing obligations with all state and local tax authorities, including, but not limited to income, franchise, sales, use, and property taxes. You agree that it is your sole responsibility to research and conform to all filing obligations. If it comes to our attention that you may have an obligation to file additional tax returns for which we have not been retained to prepare, we will notify you and ask you to contact us. If you ask us to prepare additional returns, additional fees will be charged to reflect this service.

    The Bank Secrecy Act requires the annual reporting of financial interests in or signature authority over foreign bank accounts (including authority comparable to signature authority Failure to file the Report of Foreign Bank and Financial Accounts (“FBAR”) can result in the imposition of both civil and criminal penalties, which can be significant. The FBAR is not a tax return, and preparation of same is not within the scope of this engagement. If you have questions regarding this filing obligation or wish to engage us to prepare such reports, please contact us to discuss these matters. As of now, these forms are due on the 30th day of June each year.

    You acknowledge your responsibility to inform us of any bartering transactions, listed transactions or transactions of interest as designated by the IRS. You agree to hold us harmless with respect to any additional taxes, penalties, or interest imposed on you by taxing authorities resulting from your failure to timely notify us, in writing, of all such transactions in order to facilitate the timely preparation and filing of your tax returns.

    You are responsible for maintaining adequate documentation to substantiate the accuracy and completeness of your tax returns. You should retain all documents that provide evidence and support for reported income, credits, and deductions on your returns as required under tax law. You are responsible for the adequacy of all such documents. You represent that you have such documentation and can produce it if needed to respond to any audit or inquiry by taxing agencies. You agree to hold us harmless with respect to any additional taxes, penalties, or interest imposed on you by taxing authorities resulting from the disallowance of tax deductions due to inadequate documentation.

    Unless we are otherwise advised, you confirm that expenses such as meals, travel, entertainment, vehicles use, gifts, and related expenses are supported by necessary records required by the IRS. At your request, we are available to answer your questions and advise you on the types of records required. You agree that you will not and are not entitled to rely on any advice unless it is provided in writing.

    You have final responsibility for your income tax returns. Check them carefully for accuracy and completeness before you sign them.

  • Our Responsibilities

  • We will use our judgment to resolve questions in your favor where a tax law is unclear if there is appropriate justification for doing so. Whenever we are aware that a possibly applicable tax law is unclear or there are conflicting interpretations of the law by authorities (e.g., IRS and courts), we will explain the possible positions that may be taken on your return. We will follow the position you request, provided it is consistent with our understanding of the current codes, regulations and their interpretations. If the IRS or state tax authorities later contest the position taken, there may be an assessment of additional tax, interest, and penalties. We assume no liability for and you hereby release us from any such additional tax, interest, and penalties or other fees and assessments.

    We may deem it necessary to provide you with accounting and bookkeeping assistance solely for the purpose of preparing the income tax returns. We will request your approval before rendering these services. Our engagement does not include any procedures designed to discover fraud, theft, or other irregularities, should any exist. You agree that you will not and are not entitled to rely on any advice unless it is provided in writing.

    We reserve the right to withdraw from this engagement without preparing your income tax returns in the event you disagree with our recommendations regarding tax return filing and reporting obligations, tax return positions to be taken, or disclosures to be made in the returns.

    Our engagement does not include tax-planning services, which are available as a separate engagement. During the course of preparing the tax returns identified above, we may bring to your attention certain available tax saving strategies for you to consider as possible means of reducing your income taxes in subsequent tax years. However, we have no responsibility to do so, and will take no action with respect to any such recommendations, as the responsibility for implementation remains with you, the taxpayer.

    This engagement does not include responding to inquiries by any governmental agency or tax authority. If your tax return is selected for examination or audit, you may request that we assist you in responding to such inquiry. In that event, we would be pleased to discuss providing assistance to you under the terms of a separate engagement letter for this purpose.

  • Timing of Engagement

  • We expect to begin the preparation of your returns upon receipt of a signed copy of this letter and delivery of all tax documents requested by our office. Our services will be concluded upon delivery, electronic or otherwise to you of your tax returns for your review and filing with the appropriate taxing authorities.

  • Penalties and Interest Charges

  • Federal, state and local taxing authorities impose various penalties and interest charges for noncompliance with tax law, including without limitation, failure to file or late filing of tax returns and underpayment of taxes. You, as the taxpayer, remain responsible for the payment of all taxes, penalties, and interest charges imposed by taxing authorities.

  • Affordable Healthcare Act (“ACA”)

  • Health Care Reform (also known as "Obamacare" or ACA) has passed and the result will be additional tax due for many taxpayers. The IRS is the administrator of these new taxes and unfortunately we are now required to do numerous additional calculations. There are two new taxes this year for certain income levels.

    In some cases the additional work involved will be minimal and will affect your tax return preparation fees slightly if at all. In other cases where substantial work is necessary, preparation fees may increase substantially. To minimize additional fees, you should provide all requested items in a timely manner.

  • Fees and Billings

  • The fees for the services outlined above will be billed monthly (or sooner) at our standard billing rates for each professional performing the work, plus out-of-pocket expenses plus an administrative charge of 3%. Our fee is based upon the complexity of the work to be performed and our professional time to complete the work. Additionally, this fee is dependent on the timely delivery, availability, quality, and completeness of the information you provide to us.Please refer to your

    If all necessary information you provide us to complete the return/s is not submitted in a timely manner, or is incomplete or unusable, we reserve the right to charge additional fees and expenses for services required to correct the problem. If this occurs, we will contact you to discuss the matter and the anticipated delay in performing our services.

    If our work is suspended or terminated, you agree that we will not be responsible for your failure to meet government and/or other deadlines, for any penalties or interest that may be assessed against you resulting from the failure to meet such deadlines, and for any other damages (including, but not limited to consequential, indirect, lost profits, or punitive damages) incurred as a result of the suspension or termination of our work.

  • Termination and Other Terms

  • We reserve the right to withdraw from this engagement without completing the services under any circumstance including without limitation your failure to comply with the terms of this engagement letter or as we determine professional standards require. If any portion of this agreement is deemed invalid or unenforceable, such a finding shall not invalidate the remainder of the terms set forth in this engagement letter.

  • Our records retention policy requires us to return all original records and documents that you have given us to you at the conclusion of the engagement. Your records are the primary records for your operations and comprise the backup and support for your financial reports and tax returns. Our records and files are our property and are not a substitute for your own records. Our firm destroys engagement files and workpapers after a period of 3 (three) years. Catastrophic events or physical or other deterioration may result in our firm's records being unavailable before the expiration of the above retention period.

    In the interest of facilitating our services to you, we may communicate by facsimile transmission or send data over the Internet. Such communications may include information that is confidential to you. While we will use reasonable efforts to keep such communications secure in accordance with our obligations under applicable laws and professional standards, you recognize and accept that we have no control over the unauthorized interception of these communications once they have been sent and consent to our use of these electronic devices during this engagement.

    We appreciate the opportunity to be of service to you. Please date and sign the enclosed copy of this engagement letter and return it to us to acknowledge your agreement with its terms (a scanned copy via email will suffice It is our policy to initiate services only after we receive the signed copy of this engagement letter from you.

    IF THE FOREGOING FAIRLY SETS FORTH YOUR UNDERSTANDING, PLEASE SIGN. WORK CANNOT COMMENCE UNTIL A SIGNED COPY OF THIS DOCUMENT IS RETURNED. IF THIS IS A JOINT RETURN, BOTH SPOUSES MUST SIGN.

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  • Haro’s Business Solutions 10550 Sepulveda Blvd., Suite 203 Mission Hills CA 91345 747.500.9853 office (818)286-1596 Fax

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