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, or other tax filings that might be needed. If the client would like these 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 nature.
- 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 and the tax preparer charges by the complexity of the client’s actual tax situation. The tax preparer charges a base rate depending on filing status, and then by the form and situation depending on the needs and complexity of the client’s tax situation. Some, but not all of these additional fees are listed in this agreement.
- If a client requests tax planning or other tax advice, 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 2023. The retainer expires in three years and is not refundable or creditable after that date.
- For tax returns estimated to cost more than $500, 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 of the invoice is required prior to finalization and filing of the prepared tax returns. The client should plan to settle any outstanding invoice in advance of any pertinent deadlines to ensure an on-time filing.
- Unless the tax preparer notifies a prior-year client of a change in fees, the tax preparer will honor a previous year’s price with adjustments for inflation and changes in complexity.
- The client has a choice between two tiers of rates/services. The first tier is for clients that do not need in-person services (online only) and that do not need to work with an EA (Tod Marcus) as their tax preparer. The 2nd tier is for clients who prefer in-person appointments and/or working with an EA (Tod Marcus). The price chart in this agreement addresses those rates.
- If payments are returned for insufficient funds the tax preparer charges $50 to $100 (depending on the situation).
- 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 agrees to review and sign the tax returns and to provide prompt/complete responses to the tax preparer’s inquiries based on the tax preparer’s turnaround time.
|Base Rates – Includes one state return* (see below for schedules and forms)||Online-Only||In Person or EA|
|Single, no dependents||From $200||From $400|
|Single, with dependents||From $300||From $500|
|Married, no dependents||From $300||From $500|
|Married, with dependents||From $400||From $600|
|Married Filing Separately||From $400||From $600|
|Additional State Tax Returns||$100 each||$100 each|
|Schedule C (Sole Proprietor Business)||$150 / $300 / $450**|
|Schedule D (Capital Gains and Losses / Sale of Home)||$50 / $150 / $300**|
|Schedule EIC (Earned Income Credit)||$150|
|Schedule E (Rental Property)||$150 for one property, $75 for each additional property|
|*Additional Forms, Situations, and Data Management|
|Form K1 entry||$20 each|
|Form 8283 (non-cash charity deduction exceeding $500)||$50|
|Form 8379 (injured spouse – with tax return only)||$50|
|Form 8606 (IRA conversions or non-taxable IRA basis)||$50|
|Form 5695 / N342 / 8936 (solar or electric car credits)||$100|
|Military Spouse Relief Act||$100|
|Form 1116 (foreign tax credit)||$100|
|Form 2555 (foreign income exclusion)||$100|
|Form 1040 for dependents (with parent’s tax return only)||$150|
|Form 4797 (sale of rental property)||$150 each|
|FINCEN Form 114 (FBAR Report)||$150 (up to 5 accounts, $10 each additional account)|
|Form 8938 (foreign specified assets)||$150 up to 5 accounts, $10 each additional account|
|Married filing separately in a community property state||$200|
|Form 8824 (like kind exchange)||$300 each|
|Form 3115 (change of accounting method)||$350 (with tax return only)|
|Form 709 Gift Tax Return (with tax return only)||From $400 each|
|Data management assistance (adding of receipts, journals, bank statements, unorganized data, if client refuses to fill out simple organizers, etc.)||$200/hr|
|Other Tax Returns (EA-Prepared Only – Includes one State Return)|
|S Corporation or Partnership||$750-$2400|
|Trust or Estate||From $600|
|Additional State (Business or Trust)||$150 each|
**Depends on complexity
Included Support and Services:
- As the pricing table indicates, clients that choose to work with an EA or prefer in-person appointments pay a higher rate. This higher rate includes tax preparation by Tod Marcus (EA) and a one-hour meeting with Tod Marcus EA to review the client’s income tax returns prior to them being finalized. During the months of February, March, and April, this can be in person or by phone, but online meetings (such as with Google Meet or Zoom) are not available during this period. This higher rate also includes one additional one-hour meeting to discuss tax planning, estimated taxes, other tax calculations, general bookkeeping advice, general financial advice, and tax advice. This 2nd meeting will only be available from May through December. This meeting can be in person, by phone, or via online meeting.
- If a meeting is requested by the client who pays the lower tier rate or if an additional meeting is requested by a client who pays the higher tier rate in excess of what is outlined in this agreement, the tax preparer charges $150 for each meeting/calculation.
- For all clients, this engagement includes an online only (no meeting) tax planning update and calculation for no additional fee. After one tax planning/calculation, the tax preparer charges $150 per planning/calculation.
- For all clients, 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 filed automatically by the tax preparer. The client agrees to give the tax preparer 3 weeks to provide a calculation.
- For all clients, 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.
- 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 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 can 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.
- 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.
- 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 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:
- The law provides various penalties and interest that may be imposed when taxpayers underestimate their tax liability, are late with tax liability payments, and file late tax returns or other reports. The client acknowledges and agrees that the tax preparer has no responsibility regarding any such understated tax, late filings, late payments, and any imposed interest and penalties of any kind and for any reason.
- The client is responsible for verifying the correct bank information indicated on the tax returns. The client acknowledges that the client’s bank or that the IRS/State might 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.
- The client agrees that 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.
- The client acknowledges that some elections and credits may expire after various time periods. The client agrees that the tax preparer has no responsibility regarding any losses or other unintended consequences incurred because of late election or credit filings.
- If an extension is filed, the preparer suggests that the client files the tax returns as soon as possible as penalties and interest for unexpected tax balances might accumulate monthly.
- The client agrees to disclose all worldwide income to the tax preparer.
- The client agrees to inform the tax preparer of all IRA (and similar) retirement contributions and to check with the tax preparer prior to making them to ensure eligibility.
- The client agrees to disclose and participate in multi-state state residency determinations.
- The client agrees that the tax preparer will not be responsible for taxes, penalties, interest, and other consequences because of a failure to comply with local, city, or school tax requirements. It is suggested that the client seeks out professional consultation and services in the appropriate locality.
- In connection with this engagement, the tax preparer may communicate with the client or others via email transmission. As emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, the tax preparer cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, the tax preparer specifically disclaims and waives any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance of this engagement. In that regard, the client agrees that the tax preparer shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, 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.
- The client agrees that 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 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).
- 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.
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, 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.
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.