INCOME TAX ENGAGEMENT DETAILS
We will prepare your Federal and required State and City individual income tax returns from information you provide to us.
Although we will not audit or otherwise verify the data you submit, it may be necessary to ask you for clarification of some of the information.
It is your responsibility to provide all the information required for the preparation of complete and accurate return. You should retain all documents, cancelled 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. Our work in connection with the preparation of your income tax returns does not include any procedures designed to discover misuse of funds or other irregularities, should any exist.
You understand, if all tax information required to file an accurate return is not received in our office by April 1 we may need to file an extension. This extension requires a tax payment on or before April 15 in an amount approximating your unpaid tax liability. The exact final amount of tax may differ from the estimate and you therefore, assume responsibility for any differences in tax, including interest and penalties.
We will use our professional judgement in preparing your tax returns. Whenever we are aware that 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 are not attorneys and therefore, cannot provide you with legal opinions on these positions.
We will adopt whatever position you request on your tax return so long as it is consistent with our professional standards and ethics. If taxing authorities should later contest the position(s) taken there may be an assessment of additional tax, interest and penalty. We assume no liability for such additional assessments.
You have the final responsibility for the income tax returns and, therefore, should review all returns carefully before you sign the IRS Form 8879 and the returns are E-Filed.
As you know, your returns are subject to examination by the taxing authorities. In the event of an audit, you may be requested to produce documents, records or other evidence to substantiate the items of income and deductions shown on a tax return. In the event of such government tax examination, we will be available upon request to represent you and may render additional invoices for the time and expenses incurred.
Fees for our services will be based upon the published rates. Our hourly fee is $100 per hour. We reserve the right to charge interest at one percent per month on invoices past due. A $30.00 fee will be added for any check not honored by your bank. All invoices will be due and payable upon presentation.
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing electronically a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). There are severe penalties for not reporting these accounts. You are required to advise your Tax Preparer if you have a Foreign Bank Account.