First Class Tax Experts LLC
Annual Engagement Letter
First Class Tax Experts LLC (the “Firm”) will prepare your personal federal income tax return (Form 1040) and applicable personal state income tax returns for the tax year ending December 31, 2025.
The following outlines the terms of our engagement (this “Agreement”) with you.
Scope of Services
We will prepare your tax returns based solely on the information you provide. You are responsible for providing all information necessary for the preparation of complete and accurate tax returns. We will rely on the information you supply as being accurate and complete to the best of your knowledge.
You represent that you have maintained all documentation required by law to support the information provided, including but not limited to records for meals, entertainment, travel, gifts, vehicle use, and charitable contributions. We may request clarification of information as needed. We will not audit or otherwise verify the data you submit.
Our engagement cannot be relied upon by you or by third parties to discover errors, fraud, or other illegal acts that may exist. We expressly disclaim any obligation to do so. However, we will inform you of any bookkeeping or accounting errors that come to our attention.
Tax Authority Reviews and Additional Services
Your tax returns may be selected for review or examination by one or more taxing authorities. Any additional work required as a result of such review, including responding to inquiries, tax planning, or preparing amended returns, is not included in this engagement.
If you are examined by a taxing authority, we will refer you to an appropriate professional to assist with representation.
Client Responsibilities and Deadlines
Timely cooperation is essential to completing this engagement. You must provide sufficient information within a reasonable time prior to the applicable filing deadline. If information is not received in a timely manner, it may be necessary for you to file an extension for an additional charge. An extension does not extend the time to pay taxes owed.
Taxes paid after the due date may result in penalties and interest imposed by taxing authorities. First Class Tax Experts LLC is not responsible for such penalties or interest.
You acknowledge that penalties and interest resulting from underpayment or understatement of tax liability are your responsibility.
Electronic Filing and Third-Party Software
We use a third-party software vendor to process tax information and electronically transmit tax returns. This vendor operates within the United States and is subject to the same confidentiality and privacy requirements imposed by the Internal Revenue Service.
Where possible, we will electronically file your tax return upon receipt of a signed Form 8879 (IRS e-file Authorization). If an electronic filing is rejected, we will prepare the return for paper filing. Additional charges may apply for re-compiling returns for paper submission.
Fees and Payment
Our fees are not contingent upon the results of our services. Fees are based on the time required, prevailing billing rates, and or charges for specific tax forms used.
Payment for tax preparation services is due when the completed return is delivered and ready for your review and signature. Tax returns will not be electronically filed until payment is received.
Review of Returns
You agree to review your tax returns thoroughly before signing the return or Form 8879. You are ultimately responsible for the accuracy of the filed return.
Professional Judgment and Indemnification
We will use professional judgment when resolving questions involving unclear or conflicting tax law. Unless otherwise instructed, we will resolve such matters in your favor when possible. Our ability to do so depends on the accuracy and completeness of the information you provide.
If penalties are assessed due to inaccurate, incomplete, or misleading information you supplied with or without intent, you agree to indemnify, defend, and hold First Class Tax Experts LLC harmless from such penalties.
Any advice or recommendations we provide are based on the facts you provide and the applicable law at the time.
Records Retention
We do not retain original client records. All original documents will be returned to you at the completion of the engagement. You are responsible for retaining and safeguarding your records for future use, including potential examinations by taxing authorities.
Our internal files, excluding a copy of your completed tax return, remain our property. Copies of such documents may be provided at our discretion and may be subject to additional fees.
Joint Returns
When a joint tax return is prepared, tax returns and supporting information may be released to either spouse without notice to or consent from the other spouse.
Legal Requests and Indemnification
If we are required to respond to a subpoena, court order, or other legal process related to this engagement, you agree to compensate us at our prevailing hourly rate for time spent and reimburse all related out-of-pocket costs.
If we incur costs, settlements, judgments, fines, penalties, or sanctions resulting from inaccurate or misleading information you provided, you agree to indemnify, defend, and hold us harmless.
Agreement Terms
This Agreement represents the complete understanding between the parties and may only be modified in writing signed by both parties. We reserve the right to terminate this engagement at our discretion.
When work involves more than one taxpayer, the individual signing this Agreement represents all affected parties.
If any provision of this Agreement is deemed unenforceable, the remaining provisions shall remain in full force and effect.
Acknowledgment
