class-act-tax.com

Firm-Client Agreement

Nancy Kurts dba Class Act Tax (collectively referred to as “The Firm”) and the undersigned parties (collectively referred to as “Client”) hereby agree that the Firm will provide services to the Client on the terms set forth below.

1. CONDITIONS

This Agreement will not take effect, and the Firm will have no obligation to provide services, until; (a) the Client returns a signed copy of this Agreement, and (b) the Client pays the fees called for under Paragraph 4. This Agreement need not be countersigned by the Firm to be considered effective. Upon satisfaction of these conditions, this Agreement will be deemed to take effect as of the date executed by the undersigned parties.

2. SERVICES TO BE PROVIDED BY THE FIRM

Income Tax Preparation The Firm will prepare the Client’s federal and state income tax returns for which the Firm is made aware as of the date of this Agreement. 

The Firm is aware of the following federal and state income tax returns to be prepared as part of This Agreement:

1040 1041 1065 1120-S and all appurtenant forms and schedules

This Agreement pertains to the 2024 tax year only, and the Firm is not responsible for any tax return unrelated to the 2024 tax year to said agencies listed herein.

The Firm will take reasonable steps to keep the Client informed of progress and to respond to the Client’s inquiries. This Agreement does not cover tax representative services. This Agreement does not cover legal services. This Agreement does not include filing services for federal and/or State-level entity registration and compliance reports (e.g. annual reports required by Comptroller and/or Secretary of State agencies, Beneficial Ownership Information Reporting required by FinCen, etc.). The Firm’s services are not intended to determine whether the Client has filing requirements in other taxing jurisdictions than the one(s) the Client has informed the Firm of as of the date of this Agreement. The Firm will provide copies of all relevant correspondence concerning this matter.

3. CLIENT’S DUTIES

  1. The Client understands the Firm is rendering services and acting on behalf of the Client in reliance upon information received by the Firm from the Client. The Firm may ask to clarify some items but will not audit or otherwise verify the data the Client submits. It is the Client’s responsibility for the proper classification of income and expenses.
  2. The Client agrees to be truthful with the Firm and not withhold information. Further Client agrees to cooperate, to keep the Firm informed of any information or developments which may come to the Client’s attention, to abide by this Agreement, to pay the Firm’s bills on time, and to keep The Firm advised of the Client’s address, telephone number, and whereabouts. The Client will assist the Firm by timely providing necessary information and documents from any third party or otherwise. The Client acknowledges and understands that failure to diligently assist the Firm could lead to a less favorable result in this matter, and may result in filing delays and penalties.
  3. The Client acknowledges that they are responsible for maintaining adequate documentation to substantiate the accuracy and completeness of the Client’s tax returns. The Client should retain all documents that provide evidence and support for reported income, credits, and deductions on the Client’s returns as required under tax law. The Client acknowledges that they are responsible for the adequacy of all such documents. The Client represents that you have such documentation and can produce it if needed to respond to any audit or inquiry by taxing agencies. The Client agrees to hold us harmless with respect to any additional taxes, penalties, or interest imposed on the Client by taxing authorities resulting from the disallowance of tax deductions due to inadequate documentation.  
  4. The Client acknowledges that they are responsible for determining the Client’s state or local tax filing obligations with all state and local tax authorities, including, but not limited to income, franchise, sales, use, payroll, and property taxes.
  5. The Client acknowledges that they are responsible for researching and conforming to all filing obligations. If it comes to the Firm’s attention that the Client may have an obligation to file additional tax returns for which the Firm has not been retained to prepare, the Firm will notify the Client. If the Client requires the Firm to prepare additional returns, additional fees will be charged to reflect this service and shall be invoiced to the Client by the Firm.
  6. The Client acknowledges that they are responsible for timely remitting the payment of the estimated tax payments to the applicable tax authorities and will hold the Firm harmless for any penalties incurred as a result of late payment.
  7. The Client acknowledges that they are responsible for researching and conforming to all state-level employer registration obligations. If it comes to the Firm’s attention that the Client may have an obligation to obtain additional state-level employer registration for which the Firm has not been retained to perform, the Firm will notify the Client. If the Client requires the Firm to perform additional state-level employer registration, additional fees will be charged to reflect this service and shall be invoiced to the Client by the Firm.
  8. The Client acknowledges that they are responsible for timely remitting the payment of the federal tax deposits to the applicable tax authorities and will hold the Firm harmless for any penalties incurred as a result of late payment.
  9. The Client acknowledges that they are responsible for researching and conforming all state-level entity filing obligations. If it comes to the Firm’s attention that the Client may have an obligation to file additional registrations in other state taxing jurisdictions for which the Firm has not been retained to monitor, the Firm will notify the Client. If the Client requires the Firm perform additional state-level entity registration, additional fees will be charged to reflect this service and shall be invoiced to the Client by the Firm.
  10. The Client acknowledges that they are responsible for the Client’s compliance with the Corporate Transparency Act (“CTA”), if applicable to its business, and for ensuring that any required reporting of beneficial ownership information is timely filed with the Financial Crimes Enforcement Network (“FinCEN”) as required by the CTA. The Firm will not be responsible for advising the Client regarding the legal or regulatory aspects of the Client’s compliance with the CTA. The Firm is not responsible for the preparation or submission of Client’s beneficial ownership information reports to FinCEN. The Firm strongly encourages the Client to consult with qualified legal counsel with any questions regarding Client’s compliance with the CTA, including but not limited to whether an exemption may apply to the Client’s organization or to ascertain whether relationships constitute beneficial ownership under CTA rules.

4. FEES

The Client agrees to pay a minimum fee of $150 for the Firm’s services under this Agreement. Payment is due upon execution of the contract via cash, check, or an automatic draft of the Client’s credit card. 

The Client agrees to pay a total fee based on the complexity required to complete the Client’s income tax returns summarized within the final invoice. The Firm will provide the Client with the final invoice to be paid in full prior to the booking of the review appointment via cash, check, or an automatic draft of the Client’s credit card. Credit for the minimum fee will be applied to the final invoice.

The Client acknowledges that fees are subject to change. In the event that additional fees apply, the Firm will provide the Client with an invoice to be paid prior to the e-filing of the income tax returns and/or the delivery of final documentation outlined within this Agreement.

  1. This fee does not depend on the amount of work performed or the results obtained. The Client acknowledges that this fee is negotiated and is not set by law. The fee shall be paid by the Client via cash, check, or an automatic draft of the Client’s credit card. 
  2. The Client may terminate the Firm’s services outlined within this Agreement with written notice no later than three days from the date this Agreement is executed sent to nancy@class-act-tax.com. The Client acknowledges that the Firm will not issue a refund to the Client for termination of the Firm’s services outside of the required notice period.
  3. Late Payment Policy The Firm will make additional attempts to process payment for services in the event the Client’s credit card payment is declined. Payments received after the 5th of the month are subject to a penalty of $25.00 and will collect interest at a rate of 1% per month (12% annually).

An unpaid balance is determined by taking the beginning balance of an account for each month, adding any new charges, and subtracting any payments made to a client’s account. The Firm then multiplies this amount by the 1% monthly periodic interest rate to compute the late charge for an account for that month. 

5. COSTS AND OTHER CHARGES

The Firm may incur various costs and expenses in performing services under this Agreement. The Client agrees to pay for all costs, disbursements, and expenses in addition to the fee. The costs and expenses commonly include service of process charges, filing fees, and other similar items. The foregoing external costs and expenses will be charged to your credit card on file. The Firm will obtain the Client’s written consent before incurring any costs in excess of $50.

6. BILLS

The Firm will send the Client periodic bills for fees and costs incurred. Each bill will be payable within ten (10) days of its mailing date. Clients may request a bill at intervals of no less than 30 days. If the Client so requests, The Firm will provide one within ten (10) days. Bills for the fee portion of the bill will include the amount, rate, basis for calculation, or other methods of determination of the Firm’s fees. Bills for the cost and expense portion of the bill will clearly identify the costs and expenses incurred and the amount of the costs and expenses. 

7. DELIVERY OF THE RECORDS

Client documents will be provided via secure electronic storage methods. The Firm will retain the case file for a period of three years after which the Firm is authorized by this Agreement to have the case file destroyed. (see §1.6695-2(b)(4)(i))

The Client is entitled, upon written request, to any files in the Firm’s possession relating to the services performed by the Firm for the Client, excluding the Firm’s internal accounting records or other documents not reasonably necessary to the services provided hereunder for a fee commensurate with the time required to compile the records billed at a rate of $150/hour billed in increments of 0.1 of an hour or for a minimum fee of $250 whichever is greater. Payment of the minimum fee is required prior to the start of any services to be performed by the Firm to compile the requested records. The case file includes Client papers and property as defined in Treasury Department Circular No. 230. 

Should the Client require additional tax return copies after the initial delivery of the final tax return upon confirmation of filing, the Firm will require a fee of $50 to be paid prior to remitting additional tax return copies to the Client.

8. DISCHARGE AND WITHDRAWAL

The Client may discharge the Firm at any time. The Firm may withdraw with the Client’s consent or for good cause or if permitted under the Treasury Department Circular No. 230 and/or applicable law. Among the circumstances under which the Firm may withdraw are: (a) with the consent of the Client; (b) Client’s conduct renders it unreasonably difficult for the Firm to carry out the employment effectively; and/or (c) Client fails to pay the Firm’s fees or costs as required by this Agreement. 

Notwithstanding the discharge, the Client will remain obligated to pay the Firm at the agreed rates for all services provided and to reimburse the Firm for all costs advanced. 

9. CONCLUSION OF SERVICES

When the Firm’s services conclude, whether by completing the services covered by this Agreement or by discharge or withdrawal, all unpaid charges for fees or costs will be due and payable immediately. 

10. DISCLAIMERS 

  1. The Client acknowledges and understands the Firm and its employees are not registered investment advisors; therefore, the Firm will not give any investment advice as part of this engagement.
  2. The Client acknowledges and understands that the Firm and its employees are not Certified Public Accountants. The Firm will prepare the Client’s tax returns based on information and representations that the Client provides to the Firm. The Firm will not audit or otherwise verify the data the Client submits to us, although the Firm may ask the Client to clarify some of the information provided. The Firm will prepare the tax returns solely for filing with the IRS and applicable state and local taxing authorities. The above-mentioned returns are not intended to benefit or influence any third party, either to obtain debt or equity financing or for any other purpose other than the purpose intended by the taxing authorities.  
  3. Nothing in this Agreement and nothing in the Firm’s statements to the Client will be construed as a promise or guarantee about the outcome of the matter. The Firm makes no such promises or guarantees. The Firm’s comments about the outcome of the matter are expressions of opinion only, are neither promises nor guarantees and will not be construed as promises or guarantees. Any deposits made by the Client, or estimate of fees given by the Firm, are not a representation of a flat fee and will not be a limitation on fees or a guarantee that fees and costs will not exceed the amount of the deposit or estimate. Actual fees may vary significantly from the estimates given. 

11. PROFESSIONAL LIABILITY INSURANCE DISCLOSURE

Pursuant to Treasury Department Circular No. 230, the Firm hereby informs the Client that the Firm maintains professional liability insurance. 

12. CONSENT TO USE OF E-MAIL AND CLOUD SERVICES

In order to provide the Client with efficient and convenient services, the Firm may communicate using e-mail. Because e-mail continues to evolve, there may be risks in communicating in this manner, including risks related to confidentiality and security. To mitigate these risks, the Firm discourages email attachments sent to the Firm or sent by the Firm except when appropriate secure electronic storage methods are available. By entering into this Agreement, Client is consenting to such e-mail transmissions with Client and Client’s agents. 

In addition, the Firm uses a cloud computing service with servers located in a facility other than the Firm’s office. Most of the Firm’s electronic data, including emails and documents, are stored in this manner. By entering into this Agreement, the Client understands and consents to have communications, documents, and information pertinent to the Client’s matter stored through such a cloud-based service. 

13. CHOICE OF LAW & DISPUTE RESOLUTION

This agreement will be governed and interpreted in accordance with the laws of the State of Idaho. Any and all controversies arising under this Agreement or in connection with the existence, execution, or validity hereof, or in connection with the Company or its property, shall be first submitted to mediation and then settled by arbitration in Boise, Idaho unless the parties are able to arrive at a mutually satisfactory resolution to any such controversy by written agreement. Any arbitration hereunder shall be before one neutral arbitrator and administered by Judicial Arbitration and Mediation Services (“JAMS”) pursuant to its Comprehensive Arbitration Rules and Procedures and in accordance with the Expedited Procedures in those Rules, or if the parties agree, pursuant to JAMS’ Streamlined Arbitration Rules and Procedures. Each party will be responsible for any fees and costs, including, but not limited to, attorney’s fees resulting from the arbitration.

14. INDEMNIFICATION

The Client agrees to indemnify, hold harmless, and has the duty to defend the Firm from any and all liabilities, including but not limited to, litigation costs and attorneys fees that may arise as a result of the Client’s negligence or breach of any of the representations herein.

15. LIMITATION OF LIABILITY

In any event, the Firm’s maximum liability for any reason relating to the services under this letter shall be limited to the fees paid to the Firm for the services or work product giving rise to the liability, except to the extent finally determined to have resulted from my gross negligence or willful misconduct. 

17. SEVERABILITY IN THE EVENT OF PARTIAL INVALIDITY

If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.

18. MODIFICATION BY SUBSEQUENT AGREEMENT

This Agreement may be modified by subsequent Agreement of the parties only by an instrument in writing signed by both of them.

19. EFFECTIVE DATE

This Agreement will govern all services performed by the Firm on behalf of the Client commencing with the date this Agreement is executed by the undersigned parties. Even if this Agreement does not take effect, the Client will be obligated to pay the Firm the reasonable value of any services the Firm may have performed for the Client.  

THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS AND AGREE TO THEM AS OF THE DATE THE FIRM FIRST PROVIDED SERVICES. IF MORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE, JOINTLY AND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT. 

ENGAGEMENT LETTER ACKNOWLEDGEMENT