Terms of Service and Engagement Agreement

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.
  • This is not a contract. 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 services 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 and reasonable fees for the work that was completed.
  • Prices will often change from year to year with the published inflation rate.
  • Quoted rates are estimates and the tax preparer charges by the complexity of the client’s actual tax situation.
  • At the tax preparer’s discretion, in the event the published rates in this agreement are greater than 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.
  • Even if a discount is offered based on a previous year’s price, the fee will change based with any change in complexity of the client’s tax situation. For example, if a client opens a business or becomes an active crypto-currency trader, the price will change accordingly.
  • If a client requests tax planning or other tax advice prior to the normal tax preparation and filing time window, a retainer of $350 plus tax will be charged to the client. This retainer 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 the appropriate year. The retainer expires in three years and is not refundable or creditable after that date.

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, for additional businesses there will be additional fees as 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 (this service must be specifically requested by the client)
  • 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
  • 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 tax preparer must fix or amend tax returns or help with other tax-related situations for years in which the client and the tax preparer were not engaged.

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

  • To avoid bookkeeping fees, clients will provide categorized income and expense statements or complete the 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 the reporting of virtual currency transactions is not a service in which the tax preparer can provide, but the tax preparer can suggest software and service solutions to help the client create the reports that are needed to prepare the tax returns.

Tax Overpayment Refunds:

  • The client is responsible to verify the correct bank information on the tax returns. 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 generally subject to Hawaii General Excise Tax filing and payment requirements. Hawaii GE Tax is a separate tax imposed by the state of Hawaii and the preparation and filing of Hawaii GE Tax returns is not included with income tax preparation services. The tax preparer will not prepare and file Hawaii GE Tax forms for the client unless this service is specifically requested by the client.

1099 Filings:

  • Many tax situations require that the client files form 1099. The tax preparer will not prepare and file 1099 forms for the client unless this service is specifically requested by the client.

For tax years in which the client is engaged, support and services are included as follows:

  • 4 hours/meetings for tax planning, estimated taxes, calculations, general bookkeeping advice, financial advice, and tax advice per year
  • 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 the client’s financial advisor
  • Additional copies of tax returns and documents on request as available (the tax preparer does not guarantee the storage of the client’s tax documents, though the tax preparer will provide copies for the client when possible)

Support and services for all clients do not include:

  • 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.
  • Reminders when tax returns are due and when it is time to file them.
  • Annual business registration renewal
  • Bookkeeping
  • 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 able to write these under any circumstance). 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, levies, 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 Professional 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 client must review and sign the tax returns and provide prompt/complete responses to the tax preparer’s inquiries based on the tax preparer’s 6-week turnaround time.
  • The tax preparer will not remind the client of deadlines.
  • Extensions are not filed unless specifically requested by the client each year.
  • All tax return data must be provided by the client within 3 weeks to the tax deadline, so the tax preparer has time to estimate any needed extension payment.
  • Certain tax situations create large penalties when the tax return is filed late. Any Penalties, interest, fees, canceled payment agreements with the IRS/states, and other unforeseen consequences related to late filing are the responsibility of the client. The Tax Preparer will not cover or share in the cost of taxes, penalties, fees, 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.
  • 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.
  • The client will 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.
  • Certain counties, cities, and localities across the United States have their own tax codes and filing requirements. It is not possible for the tax preparer to stay current on every locality’s tax laws. The tax preparer will not be responsible for taxes, penalties, interest, and other consequences as a result of a failure to comply with local tax requirements. It is suggested that the client seeks out professional consultation and services in the appropriate locality.
  • Responses from the tax preparer via email are summaries and suggestions only and are not to be considered written tax advice. Any accounting, business or tax advice contained in email communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid additional tax or tax-related penalties and interest. Information provided via email may be general in nature or based on previous communication, so it may not be applicable to the client’s specific circumstances. The client must notify the tax preparer in writing if the client would like official written tax advice services, and this will require an in-depth analysis of the tax issues involved and a separate written engagement agreement.
  • 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 substantiate 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 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 as a result from disallowances or adjustments.
  • 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 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, trusts, property, businesses, corporations (or other) entities, gifts, and distributions.
  • The tax preparer does not guarantee the accuracy of estimated tax calculations or that any provided tax planning advice is the most optimal for the client.
  • Invoices are due and payable prior to presentation and delivery of the tax returns and prior to filing the tax returns. Interest and 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 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 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.
  • 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.
  • If the client is providing documents by mail or in person, the client should provide copies of documents and retain the originals.
  • Upon request by the client, the tax preparer will return any documents either in person at the office of the tax preparer by appointment only during regular business hours or by regular mail only.
  • Payroll tax filing services do not include counsel on federal or state payroll laws. This includes but is not limited to items such as maximum hours, overtime rules, minimum wages, required benefits, workers compensation requirements, temporary disability insurance requirements health insurance requirements, contractor vs. employee rules, child labor laws, payday time deadlines, and other payroll rules and laws. The client should seek an attorney to ensure payroll law compliance.
  • Payroll tax filing services do not include tracking or entering hours, creating employee paychecks, or paying employees. The tax preparer will provide an online interface so the client can manage paying employees.
  • Payroll tax filing services do not include communicating with employees, or the issuance of W2 forms directly to employees. The tax preparer will communicate and provide documents and services to the client only. It is up to the client to deliver W2 forms to the client’s employees. If a client’s employee wishes to contact, receive advice, or receive documents from the tax preparer, a separate written engagement with the employee will be required.

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 agreeing and checking the box, the Client(s) agree that they have read our full policy, accept the terms and conditions (the Agreement).

I authorize Tod Marcus Inc to charge my provided credit card or bank account for agreed upon services. I understand that my information will be saved to file for future automated transactions on my account.

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.