Client Service Agreement and Privacy Policy

Tod Marcus Inc (Tax Services Oahu) – CLIENT SERVICE AGREEMENT

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

Terms of engagement:

  • This client service engagement remains in effect until cancelled by the client or by the tax preparer.
  • Both the client and/or the tax preparer can terminate the agreement at any time requiring no specific explanation or advanced notice.
  • If the client requests tax preparation work from the tax preparer, the tax preparer produces that work, and the client decides to disengage prior to completion, the client agrees to pay the preparer’s normal fees for the work that was completed.
  • Quoted rates are estimates and prices may be subject to change from year to year.
  • The tax preparer charges by the complexity of the client’s tax situation.
  • In the event of an increase in published rates as compared to a client’s previous year rate, the tax preparer might offer a discount to the client based on an inflation adjusted previous year’s rate. Any discount is solely at the tax preparer’s discretion.
  • Even if a discount is offered based on a previous year’s price, the fee will change based on a change in complexity of the client’s tax situation. For example, if a client opens a business or adds dependents, the price will change accordingly.

Current Standard Rates:

  • Individual and Family Income Tax Services Inclusive Rate – from $550 per year
  • Sole Proprietorship or Self-Employed Income Tax Services Inclusive Rate – from $900 per year
  • Corporate and Individual Income Tax Services Inclusive Rate – from $1200 per year
  • Payroll Services – from $2400 per year for s corporation owner payroll plus $25 per month for each additional employee
  • One rental property is included, then there is an additional fee of $50 per property
  • One state tax return is included, then there is an additional fee of $50 per state tax return
  • One business is included, then there are additional fees to be agreed upon by the client and the tax preparer
  • Tax Returns for dependents of the client are generally $100 each depending on complexity
  • Hawaii GE Tax Returns – $99 per filing
  • Annual 1099NEC Filings – $39 each (billed ala carte – we do not provide reminders to file these)
  • This is not a complete list of fees. Charges for other less common forms and tax situations may apply

Additional fees may apply when:

  • Bookkeeping services are requested or required
  • There are tax situations that were not presented, in addition to, or not discussed when the quote was originally provided
  • Extra time is needed to organize the client’s data
  • More than the included time amounts of meetings, advice, or support is requested by the client
  • The tax preparer must recalculate or redeliver a completed tax return because the client is requesting changes after the tax return had been completed and presented for review
  • The client is an active day trader or trades crypto currency actively

Bookkeeping is not included in the price quoted for tax preparation:

  • To avoid bookkeeping fees, clients will provide categorized income and expense statements or completed organizers/questionnaires as 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.
  • This includes expenses for self-employment/business, rental property, medical, tuition, charity, and all other expenses that need to be summed 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 for virtual currency transactions is beyond the scope of income tax preparation and we are not able to provide this service. The client must provide a processed summary of the transactions to the tax preparer that is similar to a 1099B statement from a stock brokerage (the tax preparer can provide an organizer with instructions on request). There are also software applications and third-party service providers that offer this service.

Tax Refunds:

  • The client is responsible to verify the correct bank information on the tax return. The tax preparer’s bank might also reject a refund for several reasons. Under no circumstance will the tax preparer reimburse or advance missing, misdirected, or delayed refunds to the client.
  • The tax preparer does not guarantee the amount of a refund stated on a tax return, the time in which it is received, or the method in which it is delivered.

Hawaii General Excise Tax Filings:

  • Income from self-employment, business, property rental, and other sources are subject to Hawaii General Excise Tax filing and payment requirements. Engagements for income tax services only do not include Hawaii General Excise Tax filing services. The client must specifically request Hawaii General Excise tax services in addition to this engagement.

For clients that receive a discount or pay less than published rates, support and services are included as follows:

  • 1 hour to review the tax return in person, by phone, or online meeting.
  • 1 hour/meeting in the off season for support, tax planning, estimated taxes, calculations, general bookkeeping advice, financial advice, and tax advice
  • Extension filing and calculations (the client must request an extension – they are not filed automatically)

Unless otherwise engaged in a separate inclusive service agreement, support for clients that receive a discount or pay less than the published rates do not include:

  • Amended tax returns
  • Hawaii GE Tax Returns
  • IRS/State representation with power of attorney in the event of an audit.
  • IRS power of attorney and representation for letter support and responses
  • SEP/SIMPLE/SOLO Calculations and collaborating with your financial advisor
  • Additional copies of tax returns and documents
  • Support, advice, representation, amended returns, penalty abatement, or tax balance support for tax years for which we did not serve as the tax preparer or for services in which the client has not engaged
  • Annual business registration
  • Bookkeeping
  • IRS/state tax installment or payment plans, IRS form 433, 433a, 433b, etc., or “offers in compromise”.
  • Letters to lenders (we are not able to write these under any circumstances). 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).
  • FBAR reports and other non-US activity reporting requirements such as form 3520/3520a
  • Communications with third parties to obtain documents or other information
  • Other non-income tax related items
  • Processing, form completion, and record keeping of payroll-related payments to third parties such as retirement account deposits, child support payments, prevailing wage, garnishments, or union payments
  • Written tax advice or tax advice via email
  • Applications or support for economic relief, unemployment, other government benefits, or for other programs during times of economic downturns or disasters.

For clients that pay our published inclusive rates, support and services are included as follows:

  • 4 hours/meetings for tax planning, estimated taxes, calculations, general bookkeeping advice, financial advice, and tax advice
  • Amended tax returns
  • Extension filing and extension calculations (the client must request an extension – they are not filed automatically)
  • IRS/State representation with power of attorney in the event of a tax return audit (up to 6 hours)
  • IRS power of attorney and representation for letter support and responses (up to 3 hours)
  • SEP/SIMPLE/SOLO Calculations and collaborating with your financial advisor
  • Additional copies of tax returns and documents on request as available (we do not guarantee the storage of tax documents, though we will provide copies for the client when possible)

Support and services for all clients do not include:

  • Support, advice, representation, amended returns, penalty abatement, or tax balance support for tax years for which we did not serve as the tax preparer or for services in which the client has not engaged
  • Annual business registration
  • Bookkeeping
  • IRS or state tax installment or payment plans, IRS form 433, 433a, 433b, etc., or “offers in compromise”.
  • Letters to lenders (we are not able to write these under any circumstances). 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).
  • FBAR reports and other non-US activity reporting requirements such as form 3520/3520a
  • Communications with third parties to obtain documents or other information
  • Other non-income tax related items
  • Processing, form completion, and record keeping of payroll-related payments to third parties such as retirement account deposits, child support payments, prevailing wage, garnishments, or union payments
  • Written tax advice or tax advice via email
  • Applications or support for economic relief, unemployment, other government benefits, or for other programs during times of economic downturns or disasters.
  • Taxes for Active Day Traders or Traders of Crypto Currency
  • Tax services for taxpayers that are in bankruptcy

Deadlines:

  • During the peak of tax season and around the extension deadlines, the tax preparer’s turnaround time may be up to 6 weeks.
  • The tax preparer does not guarantee an on-time filing.
  • The tax preparer will not remind the client of deadlines.
  • Extensions are not filed unless requested by the client, and all tax return data must be provided within 3 weeks to any deadline, so the tax preparer has time to calculate the extension payment.
  • Penalties, interest, and fees related to late filing are the responsibility of the client. The Tax Preparer will not cover or share in the cost of penalties and interest under any circumstance.
  • If an extension is filed, the tax preparer suggests that the client files the tax returns as soon as possible as penalties and interest for tax balances might accumulate monthly.
  • Certain elections and credits may expire after various time periods. Any losses incurred because of late election or credit filings will be the responsibility of the client.

Other Items and Expectations:

  • 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.
  • It is expected of the client to disclose all worldwide income to the tax preparer.
  • It is expected of the client to withhold enough tax or pay enough in estimated tax.
  • The client is expected to disclose and participate in multi-state state residency determinations. Since not all multi-state situations are black and white, the tax preparer will not be responsible for penalties caused from incorrect state filings.
  • Unless the tax preparer was hired to organize the client’s business, the client must inform the tax preparer as to the type of tax treatment that is appropriate for their business. For example, the client must tell the tax preparer to file an income tax return as a sole proprietor, partnership, s corporation, fiscal year, etc. Penalties for incorrect filings will be the responsibility of the client.
  • The tax preparer will not be responsible for additional taxes, penalties, and interest resulting from documents that were mistakenly omitted form a tax return. The client should check to see that all provide data was include on the tax return(s).
  • The tax preparer will return the client’s original records and does not retain or store copies of the client’s documents or tax returns. The client must store these records, along with all supporting documents, in a secure location in case these items are needed later to prove accuracy and completeness of a tax return.
  • Certain positions, elections, and deductions may be examined and reversed by the IRS. The tax preparer does not guarantee positions, deductions, or tax credits. Any additional taxes, penalties, interest, or amendments incurred or as a result from disallowances, adjustments, or misunderstandings between the client and the tax preparer are the responsibility of the client.
  • 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, we suggest legal counsel. This includes but is not limited to any association with foreign (non-US) income, bank accounts, assets, retirement accounts, trusts, property, businesses, corporations (or other) entities, gifts, and distributions.
  • The Tax Preparer will perform services only as needed to prepare your 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.
  • The tax preparer does not guarantee the accuracy of estimated tax calculations
  • Invoices are due and payable prior to presentation and delivery of the tax returns and prior to filing the tax returns. Interest or collection actions may be imposed for payments beyond 30 days.
  • 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 may not be used for any other purpose. The client agrees to indemnify and hold the tax preparer 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.
  • 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.

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.

By checking the box on the client questionnaire or other form as appropriate, the Client(s) agree that they have read our full policy, accept the terms and conditions (the 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.