TAX PREPARATION ENGAGEMENT LETTER

INCOME TAX PREPARATION ENGAGEMENT LETTER

Terms and Conditions. This letter states the terms and conditions by which you (“you,” “client” or “your”) have engaged Turtle Tax, (“We,” “us” or “our”) to provide certain tax return preparation and/or consulting services. To ensure a clear understanding of the separate responsibilities we and you have in this engagement, we ask all clients for whom returns are prepared or reviewed to confirm the following arrangements.

Services. We will prepare your federal and requested state/local income tax returns based solely on information provided in the Client Tax Organizers and via the tax documents you submit. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of some of the information. We will provide questionnaires and worksheets to guide you in organizing the information we need to prepare your tax returns. You represent that the information you are supplying to us is accurate and complete to the best of your knowledge and that you have disclosed to us all relevant facts affecting the returns. Your use of such forms will assist in keeping pertinent information from being overlooked.

Client Responsibilities. Please note that it is your responsibility to ensure that all information necessary to prepare your tax return is included in your tax package. Since the returns will be prepared based on the information you provide, you should closely follow the questionnaires and worksheets in assembling required information. You should retain all the original documents, canceled 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. As the taxpayer, you have the final responsibility for the income tax return(s) and, therefore, you should review them carefully before you sign them.

Processing Times. We strive to prepare tax returns efficiently while maintaining accuracy and compliance. Estimated processing times after all required documents are received:
Individual Tax Returns Average processing time: 1–2 business days Peak tax season (January–mid April): 1–2 weeks
Business Tax Returns Average processing time: 1–2 weeks Peak tax season: 1–2 months

These time frames are estimates only and may vary based on complexity, volume, and the completeness of information provided. Specific completion or filing dates are not guaranteed.

Revisions of Returns. Should a tax return require revision after completion through no fault of Tax Services, revision fees will apply as indicated in the price sheet of the Organizer. Any tax return requiring revision due to a legitimate preparation error will be revised at no charge.

Errors, Misrepresentations, Fraud, Illegal Acts, Theft. Turtle Tax will not attempt to discover errors, misrepresentations, fraud, illegal acts, or theft. Therefore, we have not included any procedures designed or intended to discover such acts, as we have no responsibility to do so. If you require assistance with this, we can put you in contact with a local CPA who can perform these services for you. We will only render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns.

Professional Judgment. We will use professional judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities’ interpretations of the law and other supportable positions in accordance with IRS Circular 230 guidelines (see last page of Engagement Letter).

Standards. The Internal Revenue Code and regulations impose preparation and disclosure standards with noncompliance penalties on both the preparer of a tax return and on the taxpayer. Unless we have a reasonable belief that any tax position in your return will be sustained on its merits due to having substantial authority, a preparer penalty will be imposed on us unless that position has a reasonable basis and is adequately disclosed in the return. And, while we might be able to avoid a preparer penalty by adequately disclosing the return position, you might not have to disclose the position in order to avoid applicable taxpayer penalties. If we determine that we would be subject to a preparer penalty by delivering your return to you, you agree to either adequately disclose that position on your return or change the position to one that would not subject us to penalty. If you do not choose to change your position or adequately disclose so as to eliminate, in our sole opinion, our exposure to the preparer penalty, we, in our sole discretion and at any time, may withdraw from the engagement without completing or delivering tax returns to you. Such withdrawal will complete our engagement, and you will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenses through the date of our withdrawal.

Bartering Transactions, Charitable Contributions, Travel and Phone Expenses, and Business Usage of Autos. You should also know that IRS audit procedures will almost always include questions on bartering transactions and on deductions that require strict documentation such as charitable contributions, travel, and entertainment expenses and expenses for business usage of autos, computers, and cell phones. In preparing your returns, we rely on your representations that we have been informed of all bartering transactions and that you understand and have complied with the documentation requirements for your expenses and deductions. If you have questions about these issues, please contact us.

Filing Deadline and Extensions. The filing deadline for Individual and C-Corp federal tax returns is April 15th (or the next business day when April 15th falls on a weekend). In order to meet this filing deadline, the information needed to complete the return should be received by us no later than approximately March 5th. Additionally, tax organizers and information received after April 1st must include a copy of the extension (Form 4868) filed with the IRS for the current tax year as applicable. Extended deadline date is October 15th.

Business deadlines for S-Corp structures are March 15th. In order to meet this filing deadline, the information needed to complete the return should be received by us no later than approximately February 5th. Additionally, tax organizers and information received after February 5th must include a copy of the extension (Form 4868) filed with the IRS for the current tax year as applicable. Extended deadline date is September 15th.

Turtle Tax will make every good faith effort to file complete tax returns prior to the tax deadlines. However, circumstances may require filing for an extension; therefore, Turtle Tax cannot guarantee the completion and filing of tax returns before the filing deadline, even if all information is provided prior to due date.

Tax Liability. The client is responsible for the payment of all taxes and penalties due. Under no circumstance is Turtle Tax responsible for late filing penalties or interest.

Extensions. If necessary, extensions will be prepared by Turtle Tax. If the tax return and supporting information is received after April 1st, and no payment is due or there is no tax, we will prepare and file an extension. In situations where a tax liability exists, we will provide the extension form and amount due for the client’s submission and payment to the appropriate tax authority.

Fees and Payment Policy. Our fees for these services will be based upon the extent of the tax forms that are required for you to properly file your tax return as noted on the pricing sheet included in the client tax organizer.

If a federal, state, or qualified dependent return is requested, but actual preparation determines that there is no filing requirement, a “no filing requirement” fee will apply as indicated in the price sheet of the Organizer. This fee is based upon time spent determining the filing requirement and will be decided by the Company. All invoices are due and payable upon completion.

If an extension of time to file is required, any tax that may be due with this return must be paid with that extension. Any amounts not paid by the filing deadline are subject to interest and late payment penalties when those amounts are actually paid. You are responsible for making all required payments.

All preparation fees are invoiced per tax return per tax year.
Our fees are based on the complexity of your tax return(s) as well as out-of-pocket expenses.
Tax preparation fees must be paid BEFORE we will electronically file or release your tax return(s) to you. (If you were given Special Terms to pay AFTER receiving your federal refund, you will have 3 business days to remit payment after receiving refund or must abide to the terms of your agreement to pay.)
We reserve the right to ask for a retainer to be paid in advance of work done from new clients and any client with whom we have experienced payment problems.
If you terminate this engagement before completion, you agree to pay for time and expenses incurred prior to the date of termination, even if the tax return(s) are not completed.
In the event the client has any past due balances, we reserve the right to cease working on your tax return(s) or providing any other services until the balance has been paid in full or other acceptable payment arrangements have been made.

Since payment is due at the time of service rendered, we reserve the right to place a small claims filing through Pasco County Clerk of Courts, where you will also be held liable for all legal, clerk and court costs associated with pursuance, as well as add up to 1.8% monthly accruing late charges from the date of your tax filing until the day payment submitted in full.

“A Small Claims case is a legal action filed in County Court in order to settle a claim or minor legal dispute in which demand for monies or the value of property does not exceed $5,000 excluding costs, interest and attorney fees. Small Claims Court is less formal than other types of courts and parties usually represents themselves. However, if your case is complex you want to consider obtaining legal counsel.”

This claim would involve the original cost of the invoice, any collection representative fees, and reimbursement of all legal representation and clerk/court fees incurred by the company.

Termination of Services and Refunds. If Turtle Tax begins preparing or completing your return and you then terminate the engagement, you will be invoiced and charged for work completed to that point based on the pricing sheet. This applies to tax returns that have been worked on but not yet shipped to the advisor or client. Turtle Tax does not provide tax preparation refunds in situations where returns have been prepared, signed by Turtle Tax tax preparer, and shipped to the client or advisor, regardless of whether the return has or has not been filed. Termination prior to filing will result in originals being returned to the client and a copy being retained by Tax Services.

Disclosure of Personal and Tax Information. Turtle Tax makes all reasonable efforts to maintain the privacy of client personal and tax information. Should we receive any request for the disclosure of privileged information from any third party, including a subpoena or IRS summons, we will notify you. In the event you direct us not to make the disclosure, you agree to hold us harmless from any expenses incurred in defending the privilege, including, by way of illustration only, our attorney’s fees, court costs, outside adviser’s costs, or penalties or fines imposed as a result of your asserting the privilege or your direction to us to assert the privilege.

Examination of Returns. Your returns may be selected for examination or review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available upon request to assist you. If an examination occurs, we will represent you if you so desire; however, these additional services are not included in our fee for preparation of your returns and we will render additional invoices for the time and expenses incurred.

Paragraph Titles. The paragraph titles used in this agreement are for convenience of reference only and will not be considered in the interpretation or construction of any of the provisions thereof.

Receipt of Notices from Tax Authorities. In preparing your returns, we are not responsible for a taxing authority’s assessment of underpayment penalties or interest where this action results from erroneous, incomplete, inaccurate, or misrepresented information provided by you to us. We have no ability to audit your information or search for correct data.

Privacy Policy. We highly value our clients and their privacy is important to us. We collect public and nonpublic personal and business information about our clients from various sources. We do not disclose any nonpublic personal information concerning our clients except to employees who need access to such information in order to provide products or services. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard all nonpublic personal information.

By creating this online client account with Turtle Tax, I understand that I hereby authorize Turtle Tax and all its representatives, agents, and employees to furnish my/our full and complete personal financial information and documents as necessary to those personnel connected with preparing and reviewing my federal and/or state tax return(s), amendments or other tax services that are required/requested.

IRS CIRCULAR 230 DISCLOSURE In order for us to comply with certain U.S. Treasury regulations, unless expressly stated otherwise, any U.S. federal tax advice that may be contained in this written or electronic communication, including any attachments, is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. federal taxing authority or agency or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.