2015 Individual Income Tax Return Annual Engagement Template (Page 2 of 4) in pdf

Taxpayer Responsibilities

5. Please note that any person or entity subject to the jurisdiction of the United States (includes individuals, corporations,

partnerships, trusts, and estates) having a financial interest in, or signature or other authority over, bank accounts, securities,

or other financial accounts having an aggregate value exceeding $10,000 in a foreign country, shall report such a

relationship. Although there are some limited exceptions, filing requirements also apply to taxpayers that have direct or

indirect control over a foreign or domestic entity with foreign financial accounts, even if the taxpayer does not have foreign

account(s). For example, a corporate-owned foreign account would require filings by the corporation and by the individual

corporate officers with signature authority. Failure to disclose the required information to the U.S. Department of the

Treasury may result in substantial civil and/or criminal penalties. Such disclosure includes filing Form 8938 with this Form

1040. If you do not provide our firm with information regarding any interest you may have in a foreign account, we

will not be able to prepare any of the required Income Tax related forms and penalties may be due, for which we

have no responsibility. In the absence of such information being provided we will presume you do not have any

foreign assets or financial interests and will not file any applicable disclosure forms without separate written

authorization.

6. If you and/or your entity have a financial interest in any foreign accounts, you are responsible for filing Form FinCen 114

required by the U.S. Department of the Treasury on or before June 30th of each tax year.

7. In addition, currently the Internal Revenue Service, under IRC §6038 and §6046, requires information reporting if you are

an officer, director or shareholder with respect to certain foreign corporations (Form 5471); foreign-owned U.S. corporation

or foreign corporation engaged in a U.S. trade or business (Form 5472); U.S. transferor of property to a foreign corporation

(Form 926) ); and, for taxable years beginning after March 18, 2010, if you hold foreign financial assets with an aggregate

value exceeding $50,000 (Form 8938) . These code sections describe the information required to be reported on the

respective forms, which are due when your income tax return is due, including extensions. Therefore, if you fall into one of

the above categories you may be required to file one of the above listed forms. Failure to timely file may result in substantial

monetary penalties. By your signature below, you accept responsibility for informing us if you believe that you fall into one

of the above categories and you agree to provide us with the information necessary to prepare the appropriate form(s). We

assume no liability for penalties associated with the failure to file or untimely filing of any of these forms.

Other Items

8. Our fee does not include responding to inquires or examination by taxing authorities or third parties, for which

you will be separately billed for time and expenses involved. However, we are available to represent you and our

fees for such services are at our standard rates and would be covered under a separate engagement letter. You

agree to immediately notify us upon the receipt of any correspondence from any agency covered by this letter.

Please do not respond to or click on any links from emails purportedly from the IRS-the IRS never initiates

correspondence via email and any such emails are attempts to steal your identity. Additionally in order to protect

your identity we will verify your id, birthdate and social security number when you call or visiting our office.

9. It is your responsibility to maintain, in your records, the documentation necessary to support the data used in preparing

your tax returns, including but not limited to the auto, travel, entertainment, and related expenses and the required

documents to support charitable contributions for three years from the filing date. If you have any questions as to the type

of records required, please ask us for advice in that regard. It is also your responsibility to carefully examine and approve

your completed tax returns before signing and mailing them to the tax authorities. We are not responsible for the

disallowance of doubtful deductions or inadequately supported documentation, nor for resulting taxes, penalties and

interest. We will rely, without further verification, upon information you provide to us from 3

parties including, but not limited

to, K1’s, 1099’s, 1098’s, and receipts and similar items. We DO NOT automatically file tax extensions for clients-you

must notify us in writing, email or fax if you wish us to file an extension, and the notification should include your

estimate of any balance due with the extension. We must receive your information by April 1 in order to complete

your return in a timely manner and information received after that date may cause your return to be extended and

completed after the April 15 due date. Failure to file an extension may make you subject to various penalties and interest.

Additionally, if your return is extended it does not relieve you from paying any tax due on the due date, or making quarterly

estimated tax payments for the current year. Failure to pay any tax due with the extension or failure to pay quarterly

estimated tax payments may make you subject to various penalties and interest.

2015 Individual Income Tax Return Annual Engagement Template Page 2

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