Personal Tax Preparation Service Agreement

What a good one includes

• A detailed breakdown of the exact tax forms to be prepared, including federal, state, and any necessary local filings.
• A transparent fee schedule outlining flat rates, hourly charges for extra consultation, and any additional costs for electronic filing.
• A clear clause stating that the client is responsible for providing accurate, complete, and timely financial records and receipts.
• Specific milestone dates for when the client must submit their documents and when the preparer promises to deliver the completed return for review.
• Robust privacy terms that dictate how your sensitive financial data and social security numbers will be securely stored and protected.
• A distinct section clarifying whether the preparer will assist or represent you in the event of an IRS audit, and if that service costs extra.

Common mistakes to avoid

• Leaving the scope of work vague, which often leads to unexpected fees when complex out-of-state returns or extra schedules are required.
• Failing to define who is legally liable for penalties and interest if an mathematical or clerical error is made on the filed tax return.
• Omitting a firm cutoff date for document submission, resulting in rushed filings or missed deadlines near the tax-day rush.
• Relying on verbal agreements for add-on services like year-round tax planning or amended returns instead of writing them into the contract.

Frequently asked questions