Intellitax Engagement Letter
NOTE: PLEASE READ THE CLIENT ENGAGEMENT LETTER BELOW. ONCE YOU HAVE READ THE AGREEMENT, SIGN STATING THAT YOU RECEIVED AND READ THE AGREEMENT.
INTELLITAX FINANCIAL SOLUTIONS, LLC is pleased to have the opportunity to prepare your personal income tax returns and provide you with premiere service this year. This process places responsibilities on both of us. The IRS and other taxing authorities impose penalties on taxpayers and tax preparers for failure to observe due care in reporting on income tax returns.
OUR RESPONSIBILITY:
We will prepare your 2025 federal and resident state individual income tax returns from information that you provide to us. We will electronically file all eligible returns unless you notify us in writing that you do not wish to electronically file your returns.
We will prepare the above referenced tax returns solely for filing with the Internal Revenue Service (“IRS”) and state and local (applicable) tax authorities as identified above. Our work is not intended to benefit or influence any third party, either to obtain credit or for any other purpose.
We will use reasonable care and expert judgment in preparing your returns. Whenever we are aware that possible applicable tax law is unclear or that there are conflicting interpretations of the law by authorities (e.g., tax agencies and courts), we will discuss with you our knowledge and understanding of the possible positions which may be taken on your return. We will adopt whatever position you request on your return so long as it is consistent with our standards and ethics. If the Internal Revenue Service should later contest the position taken, then there may be an assessment of additional tax liability, plus interest and possible penalties. We assume no liability for any such additional assessments.
Our engagement does not include any procedures designed to detect errors, fraud, or theft. Therefore, our engagement cannot be relied upon to disclose such matters. In addition, we are not responsible for identifying or communicating deficiencies in your internal controls.
YOUR RESPONSIBILITY:
The 2025 Client Intake Form is designed to be a guide as to the types of information we need to prepare your returns. Completing this form will assist us in making sure you are well served for a reasonable fee. Certain questions in the organizer are required to be answered prior to work beginning on 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. We will not verify the information you give us; however, we may ask for additional clarification of some information. It is your responsibility to provide all the information required for the preparation of complete and accurate returns. The final responsibility for the income tax returns is yours, so it's imperative that you review them carefully before you sign the electronic filing authorization, or, if paper filing, the actual tax returns.
MARRIED COUPLES:
It is important to note that there are ethical considerations for us to represent both of you in connection with preparation of your income tax return. We cannot represent two clients in the same matter if there is any possibility of them having conflicting interests. We are also obligated to preserve the confidentiality of our discussions with our clients. In order to prepare your income tax returns, we will discuss openly with both of you and share information freely. We will not keep information obtained from one party from being disclosed to the other party. We do not believe there is any reason to believe a conflict exists at the start of the engagement. By engaging us to prepare income tax returns for both of you, you waive any potential conflict of interest. In the event a conflict arises and we no longer believe we can ethically prepare the income tax return for both of you, we reserve the right to withdraw our services.
LIMITATIONS:
Our work in preparing your income tax returns does not include procedures designed to detect improper entries or other irregularities, should any exist. However, we will render such accounting assistance we find necessary to prepare your income taxes properly. We will use our best judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authority’s interpretation of the law and other supportable positions. Unless you tell us otherwise, we will resolve such questions in your favor, whenever possible.
PRIOR YEAR CORRECTIONS:
If, during our work, we discover information that affects prior-year tax returns, we will make you aware of the facts. However, we cannot be responsible for identifying all items that may affect prior-year returns. If you become aware of the facts. However, we cannot be responsible for identifying all items that may affect prior-year returns. If you become aware of such information during the year, please contact us to discuss the best resolution of the issue. We will be happy to prepare appropriate amended returns as separate engagements.
FOREIGN REGULATIONS:
Please note that any person having a financial interest in, or signature authority over, foreign bank accounts, securities, or other financial accounts having an aggregate value exceeding $10,000 at any time during the calendar year, must report such a relationship. Filing requirements also apply to taxpayers having direct or indirect control over a foreign or domestic entity with foreign financial accounts, even if the taxpayer does not have his/her own foreign account(s). Failure to disclose the required information to the U.S. Department of the Treasury may result in substantial civil and/or criminal penalties. If you have a financial interest in, or signature authority over, any foreign accounts, and you want us to prepare the filings, you are responsible for providing our firm with all the information necessary to prepare the FinCEN Form 114, Report of Foreign Bank and Financial Accounts. This form is required to be received by the Department of Treasury on or before April 15, 2026 for the 2025 tax year. If you do not provide our firm with information regarding any interest you have in a foreign account, or if we do not receive your signed authorization to file your foreign reporting form, we will not prepare and/or file any of the required disclosure statements.
In addition, the Internal Revenue Service requires foreign account reporting under applicable Internal Revenue Code sections and related regulations. These forms are due with the filing of your federal income tax return (including extensions). The IRS reporting requirements are in addition to the U.S. Department of Treasury reporting requirements stated above. Therefore, it is critical you disclose all foreign investments and/or transactions to our firm. Your signature below indicates you have read this section of the letter and accept responsibility for informing us if you believe you may have foreign reporting requirements with the U.S. Department of the Treasury and/or Internal Revenue Service, and you agree to timely provide us with the information necessary to prepare the appropriate form(s). We assume no liability for penalties associated with the failure to file, or untimely filing, of any of these forms.
AUDIT BY TAX AUTHORITIES:
It is important that you understand the law imposes various penalties when taxpayers understate their tax liability. You also should know that taxing authority audit procedures will likely include questions on bartering transactions and on deductions that require strict documentation. 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. We are not responsible for taxing authority disallowance of doubtful deductions or deductions unsupported by adequate documentation, or the resulting taxes, penalties and interest.
It is possible your returns may be selected for review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such an examination, we will be available upon request to assist you and will render additional invoices for the time and expenses incurred.
TAX CONSULTING:
You may need to consult with us or regarding your tax situation separately from preparation of your income tax return. Those services may be invoiced for the time and expenses incurred.
BREACH OF AGREEMENT:
The parties agree that any legal action related to an alleged breach of duties of this agreement shall be commenced with two years of the date of breach, without regard to the date the breach is discovered, except that this time requirement does not apply to collection of fees by Intellitax Financial Solutions, LLC. We reserve the right to collect our fees beyond one year, in conciliation court or by other legal means. If suit is brought to collect any amount due under this agreement, you agree to pay all related costs, disbursements, and reasonable attorney’s fees.
If any dispute arises among the parties regarding a breach of duties, not including fees and collection of such fees, the parties agree first to try in good faith to settle the dispute, and then if no agreement is reached to attend binding arbitration administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to litigation. Costs of any such binding arbitration shall be divided equally between the parties, unless otherwise agreed or determined by the arbitrator. In the event that the client owes fees for services to Intellitax Financial Solutions, LLC at the time of binding arbitration, the client will be responsible for the full cost of binding arbitration.
THIRD PARTY AUTHORIZATION:
The IRS and most state taxing authorities permit you to authorize us to discuss, on a limited basis, aspects of your return for one year after the return’s due date. Your consent to such a discussion is evidenced by checking a box on the return. Unless you tell us otherwise, we will check that box authorizing those taxing authorities to discuss your return with us.
In the interest of facilitating our services to you, we may send data over the Internet, store electronic data via computer software applications hosted remotely on the Internet, or allow access to data through third party vendors’ secured portals or clouds. Your confidential electronic data may be transmitted or stored using these methods. We may use third party service providers to store or transmit this data, such as providers of tax return preparation software security.
We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We require our third party vendors to do the same. You recognize and accept that we have no control over the unauthorized interception or breach of any communications or data once it has been sent or has been subject to unauthorized access, notwithstanding all reasonable security measures employed by us or our third party vendors. You consent to our use of these electronic devices and applications and submission of confidential client information to third party service providers during this engagement.
To enhance our services to you, we will use TaxDome, a collaborative virtual workspace in a protected online environment. TaxDome allows for real-time collaboration across geographic boundaries and times zones and allows Intellitax Financial Solutions, LLC and you to share data, engagement information, knowledge, and deliverables in a protected environment. In order to use TaxDome you will be required to execute a client portal agreement and agree to be bound by the terms, conditions and limitations of such agreement. You agree that Intellitax Financial Solutions, LLC has no responsibility for the activities of TaxDome and agree to hold Intellitax Financial Solutions, LLC harmless with respect to any and all arising from or related to the operation of TaxDome. While TaxDome backs up your files to a third party server, we recommend that you also maintain your own backup files of these records.
In using these data communication and storage methods, our firm employs measures designed to maintain data security. We use reasonable efforts to keep such communications and data access secure in accordance with our obligations under applicable laws and professional standards. We require our third party vendors to do the same. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, cloud based systems including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.
FEDERAL TRADE COMMISSION SAFEGUARD RULE: Intellitax Financial Solutions, LLC is in compliance with the IRS and Federal Trade Commission Safeguards Rule mandating that we create, enact and maintain an internal security plan to protect client data.
NEW DEVELOPMENTS: The COVID-19 pandemic has triggered numerous legislative laws, many of which may affect your tax situation to 2021 and beyond. We have provided you with a “Covid Questionnaire” which will alert us to many of the relevant circumstances that may have affected you. Based on your answers and any additional information you provide to us, we will utilize the current laws, subject to possible retroactive change, to complete your return as favorably and accurately as possible. If the laws change and an amendment of your return is required additional fees will apply unless you are participating in our Audit Protection package.
TIMING OF THE ENGAGEMENT: We expect to begin our services upon receipt of the completed 2025 income tax organizer and all tax documents requested either uploaded to the client portal or submitted to our office.
If your return is electronically filed, our services will conclude upon the earlier of: the filing and acceptance of your 2025 tax returns by the appropriate tax authorities, written notification by either party that the engagement is terminated, one year from the execution date of this agreement.
OTHER ACKNOWLEDGEMENTS:
You agree to indemnify and hold our firm and its partners, principles, shareholders, officers, directors, members, employees, agents or assigns (collectively, “firm,” “we,” “us,” or “our”) harmless with respects 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 acceptance below agrees that any dispute (other than our efforts to collect an outstanding invoice) that may arise regarding the meaning, performance or enforcement of this engagement or any prior engagement that we have performed for you, will, prior to resorting to litigation, be submitted to mediation, and that the parties will engage in the mediation process in good faith once a written request to mediate has been given by any party to the engagement. Any mediation initiated as a result of this engagement shall be administered within the county of Dallas County, Dallas, Texas according to its mediation rules, and any ensuing litigation shall be conducted within said county, according to Texas law. The results of any such mediation shall be binding only upon agreement of each party to be bound. The costs of any mediation proceeding shall be shared equally by the participating parties.
Any claim arising out of this agreement shall be commenced within one year of the delivery of the work product to the client. Any action not brought within that one year time period shall be barred despite any other limitations period set forth by either case law or statute. Our firm’s liability for claim, damages, and costs arising from this engagement is limited to the total amount of fees paid for the year(s) at issue by the client to our firm for services rendered under this agreement.
Notwithstanding anything contained herein, both our firm and client 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 entered into at our office located in Dallas, Texas, Dallas County, which shall be the exclusive jurisdiction for resolving disputes related to this agreement.
RECORD RETENTION:
It is our policy to keep records related to this engagement for 4 years. However, we do not keep any of your original records, we will return those to you upon the completion of the engagement. When records are returned to you, it is your responsibility to retain and protect the records for possible future use, including potential examination by government or regulatory agencies. By signing this engagement letter, you acknowledge and agree that upon the expiration of the 4 year period, we are free to destroy our records related to this engagement.
OUR FEES:
Fees for our tax return preparation service will be billed upon completion of your returns at the appropriate rate for the level and value of services rendered, plus out-of-pocket expenses. Our fees may include factors deemed relevant, including, but not limited to, the difficulty of the questions and the skill required to perform the tax services properly, time limitations imposed by either you or the circumstances, or additional time required to organize information. All fees and costs incurred to prepare your income tax returns are due and payable when the returns are released from our office. We reserve the right to hold the completed returns until your account is paid in full. Should your return be released without full payment, a finance charge at an annual rate of 18% (1 ½ % per month) will be assessed on any amount not paid by the 15th of the month following the billing date. Collection costs may also be assessed in certain circumstances.
