We appreciate the opportunity of working with you in completing your federal and state income tax returns for Tax Year 2018 In order to ensure an understanding of our mutual responsibilities, we ask all of our clients to confirm the following agreements:
1. Returns will be prepared based on information that you provide us. We will not audit or make ANY verification on data you submit, it is your responsibility to clarify any of this information, if necessary. In the event of an audit by a taxing authority, you will be required to provide the documentation for all items in question to the taxing authority. It is the taxpayer’s (you) responsibility to obtain/retain all documentation that supports your tax liability. Any documents that pertain to the basis of income, deductions or support items carried over into open years should be retained for a minimum of 5 years but can vary form case to case i.g. cancelled checks, cost basis information, nondeductible IRA's, net operating losses, etc.
2. The Internal Revenue Service (IRS) and State of California (FTB) provides various penalties that may be imposed when taxpayers understate their tax liability. For this reason, it is in your best interest to provide us with accurate, truthful information for use in preparing your tax forms. Our main goal in the preparation of your income tax returns is to provide you with the best possible service, unfortunately we cannot guarantee that all errors or omissions by you, fraud, misrepresentations, defalcations and/or other irregularities, should any exist, will be identified. We will use our professional judgment in resolving questions where the tax law is unclear, to better help you understand your tax return. Unless otherwise instructed by you, we will resolve such questions in your favor whenever possible.
3. Because your returns may be selected for review for any reason by taxing authorities, any proposed adjustments by the examining agent are subject to certain rights of appeal. In the case that your tax return is selected for review, you must forward all correspondence you receive to us for review & analysis. Please keep in mind we can only assist you if you contact us, otherwise we will not be aware the audit occurred. These services ARE NOT included in your tax preparation fee, therefore render additional fees for the time and expense incurred on a case by case basis, also additional fees may be charged depending upon the type of response required. Unfortunately, PRADO TAX SERVICES cannot represent you in before any tax court or authority, you will have to hire a Tax Attorney or represent yourself.
4. Our fees are based upon a standard rate schedule for the type of forms required to be filed. PAYMENT FOR SERVICES IS DUE PRIOR TO THE FILING OF YOUR TAXES. We will provide you with a COPY of your return, additional Copies will be available for an additional fee for a Period up to 5 years. After 5 years you might have to contact the taxing authorities for a copy of your return.
5. All Income Tax returns filed by Prado Tax Services will be E-FILED with the taxing authorities Department of the Treasury (I.R.S) or Franchise Tax Board (State) whenever possible. All original documents used for in the preparation of your return will be returned to you, we will only keep a copy for our records. We offer the option of creating/generating a PIN for you, that can be used as your signature on your E-filed tax forms. If you do not wish to use a pin as your signature, please specify in writing (email/fax are sufficient)
If for some reason you should encounter any issues with your return/s (i.e., did not receive your refund or check has not been cashed) do not hesitate to contact us. However, we cannot be held liable if the Department of the Treasury (I.R.S) or Franchise Tax Board (State) delays or holds your refund for any reason.
I declare that I have proof that my dependents live with me and I shall have them ready for the IRS or FTB in case of an audit. And I understand that It is the taxpayer's final responsibility for the income tax returns; therefore, the income tax retursn should be reviewed carefully before signing.
If the foregoing fairly sets forth your understanding,