2023 Income Tax Client Engagement and Agreement

Tod Marcus Inc DBA Tax Services Oahu – CLIENT SERVICE AGREEMENT

This Client Service Agreement (the “Agreement”) between the “Client(s)” -AND- Tod Marcus Inc DBA Tax Services Oahu.  (the “Tax Preparer”)

  • This client service engagement includes 2023 federal and state income tax preparation and filing services only. It does not include Hawaii General Excise Tax, Transient Accommodation Tax, Sales Tax, Payroll Tax, Bookkeeping Services, 1099 Filing, Annual Business Renewal, Beneficial Ownership Reporting as required by the Corporate Transparency Act, or other tax filings that might be required. If the client prefers services in addition to 2023 federal and state income tax services, the client must specifically request an additional engagement agreement for those services.
  • This agreement concludes when it is cancelled by the client, cancelled by the tax preparer, or upon the completed filing of the agreed upon 2023 income tax returns. The client and/or the tax preparer can terminate the agreement at any time requiring no specific explanation or advanced notice. Upon conclusion or termination of the agreement, neither the client nor the tax preparer have any obligation to continue engagement for current, continued, or future services of any kind.
  • If the client disengages prior to completion, the client agrees to pay the preparer’s normal and reasonable fees for the work that was completed.
  • Quoted rates are estimates only. The tax preparer charges by the complexity of the client’s tax situation. Not all fees and situations are listed in this agreement.
  • If a client requests tax planning or other tax advice, the tax preparer requires advanced payment of $350 plus tax. This fee is non-refundable or usable for other services, other years, or other clients; but it can be fully credited to the income tax return preparation service fees for 2023. The retainer expires in three years and is not refundable or creditable after that date.
  • For tax returns estimated to cost more than $750, the client agrees to pay a non-refundable deposit for half the estimated fee in advance of any work to be completed by the tax preparer.
  • Full payment is required prior to tax return finalization and filing. The client agrees to and should plan to settle any outstanding invoice in advance of any pertinent deadlines to help facilitate an on-time filing.
  • Automatic annual fee increases from 3 to 6% of prior year fees will be applied to all clients based on inflation and the tax preparer’s operating cost increases.
  • The tax preparer may choose to disregard the fees outlined in this agreement and honor a client’s previous year prices to include 3 to 6% price increases plus additional fees for any changes in complexity of the client’s tax situation.
  • The tax preparer does not guarantee appointment availability from January through April and most engagements will require online-only services with no appointment.
  • If payments are returned for insufficient funds the tax preparer charges an additional $50 to $100.
  • The tax preparer does not guarantee an on-time filing. During the peak of tax season and around the extension deadlines, the tax preparer’s turnaround time may be up to 6 weeks. The client acknowledges that the tax preparer’s workload will not likely allow for the fast processing of any items even if seemingly fast or simple.

2023/2024 Prices:

W2 Only Tax Returns

Single, no dependents from $250

Jointly or with dependents from $400

  • Includes:
  • W2 income
  • bank interest
  • student loan interest deduction
  • child tax credits
  • childcare credits
  • education credits
  • home mortgage interest
  • itemized deductions
  • 1099R retirement distributions
  • Hawaii State income tax return
  • Additional Fees:
    • $100 for earned income credit
  • These prices do not include:
    • tax season appointments
    • investment income / stocks / crypto / form K1 income
    • rental property
    • solar / EV credits
    • state tax returns other than Hawaii
    • 1099NEC income / self-employment / business / contractor
    • non-US interests
    • military spouse relief act / out of state home of record
    • bankruptcy/insolvency
    • professional traders
    • married filing separately status
    • injured or innocent spouse filings

Investment and/or Rental Property Income Tax Returns

Single, no dependents from $650

Jointly or with dependents from $800

  • Includes:
    • EA credentialed preparer
    • student loan interest deduction
    • child tax credits
    • childcare credits
    • education credits
    • home mortgage interest
    • itemized deductions
    • 1099R retirement distributions
    • Hawaii State income tax return
    • investment income / stock trades / crypto trades
    • one rental property
    • one K1 investment
    • IRA conversions
  • Additional Fees:
    • $50 for each additional rental property
    • $50 for each additional state tax return
    • $20 for each additional K1 investment
    • $300 for each like kind exchange
    • $150 for investments requiring estimated tax planning
    • $150 for sale of property or solar/EV credits (for 1st year clients only)
  • These prices do not include:
    • tax season appointments
    • 1099NEC income / self-employment / business / contractor income
    • non-US interests
    • military spouse relief act / out of state home of record
    • bankruptcy/insolvency
    • professional traders
    • married filing separately status
    • injured or innocent spouse filings
    • Hawaii GE Tax filing
    • bookkeeping and data management assistance (adding receipts, journals, bank statements, unorganized data, if client refuses to fill out simple organizers, etc.)
    • Beneficial Ownership Information Reporting or Reminders

Sole Proprietor (and Single Member LLC Taxed as Sole Proprietor)

Single, no dependents from $900

Jointly or with dependents from $1050

  • Includes:
    • EA credentialed preparer
    • 2 tax planning and estimated tax calculations per year
    • income from one business/self-employment activity
    • student loan interest deduction
    • child tax credits
    • childcare credits
    • education credits
    • home mortgage interest
    • itemized deductions
    • 1099R retirement distributions
    • Hawaii State income tax return
    • investment income / stock trades / crypto trades
    • one rental property
    • one K1 investment
    • IRA conversions
  • Additional Fees:
    • $50 for each additional rental property
    • $50 for each additional state tax return
    • $20 for each additional K1 investment
    • $300 for each like kind exchange
    • $150 for each additional business
    • $150 for sale of property or solar/EV credits (for 1st year clients only)
  • These prices do not include:
    • tax season appointments
    • non-US interests
    • military spouse relief act / out of state home of record
    • bankruptcy/insolvency
    • professional traders
    • married filing separately status
    • injured or innocent spouse filings
    • Hawaii GE Tax filing
    • bookkeeping and data management assistance (adding receipts, journals, bank statements, unorganized data, if client refuses to fill out simple organizers, etc.)
    • Beneficial Ownership Information Reporting or Reminders

S Corporation / Partnership Income Tax Returns

Up to $3M in Gross Sales s corporation tax return only from $750 (s corp only)

Up to $3M in gross sales s corporation plus individual taxes from $1500 (both)

  • Includes:
    • EA credentialed preparer
    • option of in-person appointment or online services
    • 2 tax planning and estimated tax calculations per year
    • income from one business/self-employment activity taxes as an s corporation
    • student loan interest deduction
    • child tax credits
    • childcare credits
    • education credits
    • home mortgage interest
    • itemized deductions
    • 1099R retirement distributions
    • Hawaii State income tax return
    • investment income / stock trades / crypto trades
    • one rental property
    • one K1 investment
    • IRA conversions
  • Additional Fees:
    • $50 for each additional rental property
    • $50 for each additional state tax return
    • $20 for each additional K1 investment
    • $300 for each like kind exchange
    • $300 for each additional sole proprietorship
    • $750 for each additional s corporation
  • These prices do not include:
    • non-US interests
    • military spouse relief act / out of state home of record
    • bankruptcy/insolvency
    • professional traders
    • married filing separately status
    • injured or innocent spouse filings
    • Hawaii GE Tax filing
    • Payroll filings
    • bookkeeping and data management assistance (adding receipts, journals, bank statements, unorganized data, if client refuses to fill out simple organizers, etc.)
    • Beneficial Ownership Information Reporting or Reminders

Included Support and Services:

  • Meetings will be available from May through December only. This meeting can be in person, by phone, or via online meeting. This engagement includes one 90-minute meeting for no additional fee.
  • After one meeting the tax preparer charges $150 for each additional meeting.
  • Extension filing and extension calculations are included for no additional fee, but the client must first enter into this agreement and request an extension. Extensions for clients are not otherwise filed automatically by the tax preparer. The client agrees to give the tax preparer 3 weeks to provide a calculation for the extension.
  • The tax preparer will include 1 hour of support to advise on IRS/State letters and correspondence, but only for issues specifically involving the tax year of the engagement. Power of attorney, representation, and calling the IRS/State on behalf of the client are not included.

Support and Services that are not Included:

The tax preparer will not include or provide the following services unless specifically requested by the client, the tax preparer has the availability to provide the services, and the client and the tax preparer enter into a new and specific engagement agreement for each type of service. If the following services are available and a new engagement is created, the tax preparer charges additional fees for these services.

  • Hawaii General Excise Tax or Transient Accommodations Tax filing.
  • Form 1099 filing.
  • Beneficial Ownership Information Reporting or Reminders
  • Support, advice, representation, amended returns, penalty abatement, tax balance support, or other services for tax years for which the tax preparer did not serve the client for that year or for services in which the client and the tax preparer have not engaged.
  • Power of attorney, representation, and phone calls to the IRS/States or other agencies on the client’s behalf.
  • Reminders of deadlines, when tax returns are due, and when it is time to file them.
  • Annual business registration renewal.
  • IRS or state tax installment or payment plans, IRS form 433, 433a, 433b, etc., or “offers in compromise”.
  • Letters to lenders (the tax preparer is not likely able to write these). Also not included are audits or attestations to financial statements, business valuations, the ability for a business to continue/sustain operations, or self-employment status (these are specialized services for which the client will need to engage elsewhere).
  • Services for non-US activity reporting requirements such as form 5471, 3520/3520a, etc., tax preparation for professional or active day traders, or taxpayers who are in or facing bankruptcy.
  • Communications with third parties to obtain or provide documents or other information.
  • Written tax advice or tax advice via email
  • Application services or support for economic relief, unemployment, other government benefits, or for other programs during times of economic downturns or disasters.
  • Processing of virtual currency transactions. (The tax preparer may suggest software and service solutions to help the client create the reports that are needed to prepare the tax returns).
  • Bookkeeping and data management. To avoid additional data management fees, the client will provide categorized income and expense statements, or they can complete organizers, questionnaires, and worksheets provided by the tax preparer. The tax preparer charges additionally to extract, interpret, sum, or merge data from receipts, ledgers, bank statements, or other documents that are not fully completed and categorized financial statements. Additional fees for data management services include expenses for self-employment/business, rental property, medical, tuition, charity, and all other expenses that need to be summed up and categorized. The tax preparer may or may not be able to provide bookkeeping services on a case-by-case basis depending on the tax preparer’s workload. Bookkeeping, specifically, will require a separate engagement agreement.
  • Any other non-income tax related item or item not listed as included in this engagement agreement.

Fee Payment Authorization:

  • By signing or checking the box to agree to this this agreement. I hereby authorize the payment processor (Bill.com, Intuit, Patriot, PayPal, and/or Chase Paymentech) on behalf of Tod Marcus Inc to initiate entries to the bank accounts and/or credit cards that I enter, or enable Tod Marcus Inc to enter, on the payment processor’s web site [in order to pay amounts that I owe to Tod Marcus Inc in accordance with instructions entered by Tod Marcus Inc on the payment processor’s web site according to this engagement agreement] and, if necessary, to initiate adjustments for any transactions credited or debited in error. I represent that I have authority to bind the organization that owns the bank accounts, and to authorize all transactions to the bank accounts that are initiated through the payment processor, I acknowledge that transactions initiated to the bank accounts must comply with the provisions of US law. This authorization will remain in effect until the organization notifies Tod Marcus Inc or the payment processor in writing to cancel it in such time as to afford the payment processor and the bank reasonable opportunity to act on it.

Client Documents:

  • Upon conclusion of this engagement, the tax preparer will provide one copy of the completed income tax return(s), either online via secure download or printed. The client agrees to download this copy promptly as the link will expire as per the tax preparer’s security policy. The tax preparer will not store client documentation or tax returns for the convenience of the client or guarantee their re-delivery.
  • The tax preparer will provide copies of engagement documents and previously delivered tax returns at the tax preparer’s discretion and if compensated for any time and costs associated with the effort.
  • The client agrees to store all provided records, along with all supporting documents, in a secure location in case these items are needed later to substantiate accuracy and completeness of a tax return.
  • The balance of the tax preparer’s engagement file, other than a copy of the completed tax return which the tax preparer will deliver to the client at the conclusion of the engagement, is the property of the tax preparer.
  • The client agrees that, if providing documents by mail or in person, the client will only provide copies of documents and retain the originals. To the extent the tax preparer accumulates any of the client’s original records during the engagement, the client can pick up those documents during normal business hours, or the client agrees that the tax preparer can return them via regular mail upon request.
  • It is the tax preparer’s policy to retain engagement documentation for a period of seven years, after which time the tax preparer will commence the process of destroying the contents of all engagement files.

Client and Tax Preparer Responsibilities and Expectations:

  • Unless the tax preparer was hired to organize the client’s business entity filings and elections, the client agrees to inform the tax preparer as to the correct type of tax treatment that is appropriate for their business. The client acknowledges that the tax preparer has no responsibility for penalties and additionally needed professional fees as a result of incorrect business entity filing treatment.
  • The client agrees that the tax preparer will not be responsible for additional taxes, penalties, and interest resulting from documents that were mistakenly omitted from a tax return. The client should check to see that all provided data was included on the tax return(s).
  • Starting January 1, 2024, many companies will be required to report information to the U.S. government about who ultimately owns and controls them. It is the client’s responsibility to prepare and file any required Beneficial Ownership Information Reports as required by the Financial Crimes Enforcement Network. Any questions concerning Beneficial Ownership Reporting should be directed to the client’s attorney. The client acknowledges that the tax preparer does not provide this service or provide reminders to file these reports.
  • The income tax returns are being prepared by the tax preparer with the sole purpose of being filed with the IRS and state income tax agencies. The completed tax returns, or drafts of the tax returns, are not authorized by the tax preparer to be used for any other purpose. The client agrees to indemnify and hold the tax preparer harmless with respect to 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.
  • The client agrees that the tax preparer will not be responsible for penalties because of incomplete disclosures and tax filings involving non-US situations. If the client has foreign interests of any kind, the tax preparer suggests that the client seek specialized tax professionals and/or legal counsel. This includes but is not limited to any association with foreign (non-US) income, bank accounts, assets, retirement accounts, investments, trusts, property, businesses, corporations (or other) entities, gifts, and/or distributions.
  • The client acknowledges that active day traders and professional traders should not engage with the tax preparer for tax preparation services of this specialized nature and the client should seek out tax preparation specialists that can help to apply correct tax treatment as appropriate. If a client engages with the tax preparer regardless of this disclosure, the client agrees that the tax preparer will not be responsible or held negligent for positions taken on the client’s tax returns that were not fully appropriate or did not provide the most favorable result.
  • The tax preparer will depend on the client to provide the information the tax preparer needs to prepare complete and accurate returns. The tax preparer may ask to clarify items but will not audit or otherwise verify the data submitted by the client.
  • The Tax Preparer will perform services only as needed to prepare the client’s tax returns or otherwise agreed upon by written agreement. All work will not include procedures to find defalcations or other irregularities. Accordingly, our engagement should not be relied upon to uncover or disclose errors, fraud, or other illegal acts.
  • Certain positions, elections, and deductions may be examined and reversed by the IRS. The tax preparer does not guarantee the allowance of positions, deductions, or tax credits taken on a tax return. The tax preparer will not be responsible for any additional taxes, penalties, or interest incurred or because of disallowances or adjustments.
  • The client agrees that the tax preparer will be filing the tax return(s) electronically. If a tax return cannot be filed electronically, the client and the tax preparer will both sign the tax return, and it will be mailed to the appropriate tax agency without modification of its contents. The client agrees not to copy or send in a tax return prepared by the tax preparer without the tax preparer’s consent, signature, and form 8948.
  • If the client requests tax return filings with the IRS and state/local agencies via US mail, the tax preparer will utilize regular mail only in such correspondence. If the client prefers or requires return receipt, certified mail, or other non-regular mail options, the client must mail the tax returns instead of the preparer. The client should seek guidance from the tax preparer to ensure that the tax return is assembled correctly and possesses all required signatures and dates.
  • The client is responsible for and agrees to track and provide all investment and property cost basis information. The tax preparer will not compute, research, or track cost basis for the client’s business or personal property.

Indemnification:

Each Party agrees to indemnify and hold harmless the other Party, and its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from or arise out of any act or omission of the indemnifying party, its respective affiliates, officers, agents, employees, and permitted successors and assigns that occurs in connection with this Agreement. This indemnification will survive the termination of this Agreement.

PRIVACY POLICY

We collect nonpublic personal information about you from various sources, including:

  • Interviews regarding your tax situation
  • Applications, organizers, or other documents that supply such information as your name, address, telephone number, Social Security Number, number of dependents, income, and other tax related data.
  • Tax related documents you provide that are required for processing your tax returns, such as forms W2, 1099R, 1099INT, and 1099DIV, and stock transactions.

We do not disclose any nonpublic information about our clients or former clients to anyone, except by request from the client or as required by law. We restrict access to personal information concerning you, except to our employees who need such information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your personal information.

If you have any questions about our privacy policy, please contact us.