Personal Tax Preparation Terms & Conditions

What a good one includes

• A detailed description of the exact tax forms and schedules you will prepare, clearly stating that services do not include audit representation unless separately contracted.
• A clear clause stating that the client is solely responsible for the accuracy and completeness of the financial records and receipts they provide.
• Concrete cutoff dates for submitting tax documents, along with specified surcharges or a disclaimer of liability if documents are received too close to the filing deadline.
• Unambiguous billing terms outlining when payments are due, accepted payment methods, and your policy on withholding the final filing until the invoice is settled.
• A legal provision that caps your maximum liability to the total amount of the preparation fee paid by the client.
• A clear explanation of how long you will store the client's physical or electronic tax files and when those records will be securely destroyed.

Common mistakes to avoid

• Failing to explicitly state that you rely on the client's information without independent verification, leaving you vulnerable if they provide fraudulent or inaccurate data.
• Omitting a specific document submission deadline, which often leads to a chaotic, last-minute rush of clients delivering paperwork days before the filing deadline.
• Forgetting to outline the fees and terms for filing amended returns or handling unexpected IRS inquiries after the initial return is filed.
• Relying on verbal agreements or handshake deals instead of requiring a signed digital or physical copy of the terms before starting any tax preparation work.

Frequently asked questions