SDO CPA LLC Terms and Conditions

Last updated: 2026-03-25

Overview

This addendum to the engagement letter describes our standard terms and conditions (“Terms and Conditions Addendum”) related to our provision of services to you. This addendum, and the accompanying engagement letter, comprise your agreement with us (“Agreement”). If there is any inconsistency between the engagement letter and this Terms and Conditions Addendum, the engagement letter will prevail.

For the purposes of this Terms and Conditions Addendum, any reference to “firm,” “we,” “us,” or “our” is a reference to SDO CPA LLC, and any reference to “you,” or “your” is a reference to the party or parties that have engaged us to provide services.

Website and Online Tools

Applicability

The provisions in this section apply to all visitors who use our website (sdocpa.com), our online pricing calculator (at pricing.sdocpa.com or embedded on sdocpa.com), or any other online tools we provide, whether or not you become a client of the firm. By using these tools, you agree to be bound by this section. If you subsequently engage our services, the remaining sections of these Terms also apply.

Pricing Calculator

Our online pricing calculator is provided for informational purposes only. Calculator results are estimates based on the information you provide and are not offers, quotes, or guarantees of services or pricing. You acknowledge that:

• Estimates depend entirely on the accuracy and completeness of the information you enter
• Actual pricing will be confirmed through a formal engagement letter based on the details of your specific situation
• Estimates may differ materially from final pricing due to factors not captured by the calculator, including but not limited to: complexity discovered during return preparation, unreported income sources, additional filing requirements, and quality of documentation provided
• We reserve the right to decline to provide services regardless of any estimate generated by the calculator

Automated Service Routing

Based on your responses in the pricing calculator, our system may suggest different service options, such as self-service client portal onboarding, a consultation with our team, or specialist review. This routing is automated and advisory. It does not limit or guarantee your eligibility for any particular service level, and it does not create an engagement or obligation on our part to provide services. Final service scope and pricing are determined through the engagement process. You may contact us at sdocpa.com/contact or 972-296-0981 at any time to request a different service path or to bypass the calculator entirely and discuss your needs directly with our team.

Third-Party Services in Online Tools

Our online tools integrate with third-party services to provide scheduling, analytics, and communication features:

• Cal.com, Inc. provides embedded appointment scheduling. When you book a consultation through the calculator, your name, email, phone number, and a summary of your service selections are transmitted directly from your browser to Cal.com’s servers when the scheduling interface loads. This data transfer occurs before you confirm a booking. Cal.com’s use of your information is governed by Cal.com’s own terms of service and privacy policy. We are not responsible for Cal.com’s system availability, scheduling errors, or data handling practices.
• PostHog, Inc. provides analytics to help us understand how visitors use the calculator. See our Privacy Policy at sdocpa.com/privacy for details.
• Customer.io, Inc. sends automated confirmation and follow-up emails after you submit the contact form.

No Engagement Created

Use of the pricing calculator, submission of the contact form, or booking a consultation through our website does not create a client-accountant relationship or professional engagement. No professional judgment, tax advice, or individualized analysis is delivered through the calculator — it produces automated estimates based on general pricing parameters, not a professional evaluation of your specific situation. A professional engagement exists only when you and SDO CPA LLC execute a written engagement letter. Until an engagement letter is signed, we owe you no professional duties, and you should not rely on calculator estimates or automated communications as professional advice.

Acceptable Use

You agree not to: (a) use automated systems, bots, or scripts to access the calculator or submit forms; (b) submit false, misleading, or fraudulent information; (c) attempt to reverse-engineer the calculator’s pricing logic or routing algorithms; or (d) use the calculator for competitive analysis or to develop competing products. We reserve the right to block access to our online tools for any reason.

Limitation of Liability for Online Tools

Estimates generated by the pricing calculator are for general informational purposes only and should not be used as the sole basis for any financial decision. We encourage you to compare estimates from multiple providers before making any commitment. You acknowledge that you have not relied, and will not rely, on any estimate generated by the calculator as a guarantee of pricing, an offer to provide services, or professional advice.

OUR LIABILITY FOR CLAIMS ARISING FROM YOUR USE OF THE PRICING CALCULATOR, WEBSITE, OR OTHER ONLINE TOOLS — INCLUDING RELIANCE ON ESTIMATES, ROUTING SUGGESTIONS, OR AUTOMATED COMMUNICATIONS — IS LIMITED TO $0. ONLINE TOOLS ARE PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND. WE DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND ACCURACY OF ESTIMATES. THIS LIMITATION APPLIES WHETHER OR NOT YOU SUBSEQUENTLY BECOME A CLIENT.

Tax Preparation Services

The provisions in this section apply to all tax preparation engagements unless specifically modified in the engagement letter.

Standard of Care

It is our duty to prepare your returns based on the same standard of care that a reasonable tax return preparer would exercise in this type of engagement. Unless otherwise noted, the applicable standard of care for a “reasonable tax return preparer” shall be based upon the following pronouncements: the Statements on Standards for Tax Services (“SSTS”) issued by the American Institute of Certified Public Accountants (“AICPA”); U.S. Treasury Department Circular 230 (“Circular 230”); and the Internal Revenue Code, Treasury Regulations, and any applicable state/local corollaries (collectively, “the Code”).

As tax return preparers, these pronouncements restrict our ability to sign a tax return when the tax positions you report do not comply with tax law. We will be unable to sign your return and may terminate the Agreement if you: request that we report a tax position on your return which we feel is contrary to published guidance, frivolous, or a willful attempt to evade tax; request that we include a deduction, credit or refund on your return that we believe you do not qualify for; or decline to disclose a position where in our professional judgment tax law requires disclosure.

No Management Decisions

SDO CPA LLC will not make any management decisions or perform management functions on your behalf.

Arguable Tax Positions

If there are conflicting interpretations of tax law, or if tax law is unclear, we will explain the possible positions that may be taken in order for us to sign your return. We will follow the position you request, provided it is consistent with our understanding of tax reference materials and our professional standards. Tax reference materials include, but are not limited to, the Code, Revenue Rulings, Revenue Procedures, court cases, and similar state and local guidance. If the IRS, state or local tax authorities later contest the position you select, additional tax, penalties, and interest may be assessed. You will be responsible for any additional tax, penalties, interest, and related professional fees you may incur to respond to the tax authority.

Tax Planning Services

Our engagement does not include tax advice which affects the calculation of tax due or the filing of tax forms and schedules for previous or future tax years. However, we may communicate potential tax strategies to you, and you may ask high-level questions of us. It is your responsibility to communicate to us, in writing, any interest in pursuing a tax strategy identified, or if you require more than a cursory response to your question. If you do not request our assistance in writing, we will infer that you do not wish to pursue any suggestion made to you. If you do request our assistance and we agree, we will confirm our understanding with you in a separate agreement prior to proceeding.

We shall not be liable for any forgone tax or other benefits if you fail to advise us of your desire to investigate or pursue any tax strategy communicated to or by us.

Government Inquiries

Our engagement does not include responding to inquiries by any governmental agency or tax authority. If you are contacted by a tax authority, either for an examination or other inquiry, you may request our assistance in responding. Such assistance will be subject to a separate agreement.

Tax Authority Communications

If we receive communications from a tax authority regarding your returns, we will forward such communications to you at the contact information on file. Responding to tax authority inquiries, examinations, or audits is not within the scope of this engagement unless separately agreed in writing. You are responsible for timely responding to all tax authority communications.

Third Party Requests

Our services are not intended to benefit or influence any third party, including any entity or investment which may seek to evaluate your creditworthiness or financial strength. We will not respond to any request from banks, mortgage brokers or others for verification of any information reported on these tax returns. Except where compelled by court order or subpoena, we do not communicate with third parties or provide them with copies of tax returns.

Reliance on Other Advisors

There may be times when you engage another advisor to assist you. If you wish to take a tax position based upon the advice of another advisor, before we are able to sign your tax return, we must comply with the applicable provisions of the Code and the SSTS. We will review the other advisor’s work and may require a written statement from the advisor describing the statutory basis for the position and the suggested disclosure needed to appropriately report the position. If we believe additional research is required, we will discuss the matter with you. You agree to pay for the additional charges necessary to complete the disclosure or research as this is not included in the scope of our service.

Moreover, you understand that the IRS, state or local tax authority may disagree with the position taken on the return. If this occurs, you will be responsible for any additional tax, penalties and interest, as well as any related professional fees, you may incur. If, after review of the work prepared by your other advisor, we determine that we are unable to sign the tax return, we will be unable to proceed and may terminate the Agreement.

Abusive Tax Strategies

Certain tax positions or strategies, while not currently identified as “abusive” by the IRS, may ultimately be determined to be so in the future. Consequently, you agree to advise us of any transaction you have entered into that entitles you to disproportionate tax benefits (deductions, credits, or refunds), that generates significant income deferral or non-recognition, or that generates significant tax losses without corresponding cash impacts (“abusive tax strategy”). If you fail to timely notify us, in writing, of any abusive tax strategy you have entered into, you will be responsible for any liability, including but not limited to, additional tax, penalties, interest and related professional fees.

Prior Year Return Analysis

Our analysis of prior year tax returns, whether prepared by us or another preparer, will necessarily be limited and may not find errors. We will, however, bring to your attention errors that we do find. Similarly, if you become aware of any information affecting prior year tax returns, please contact us. If an error or information affecting a prior year tax return comes to our attention, we will advise you and provide a recommendation. You are responsible for the decision whether or not to amend a prior year return.

Reasonable Cause Statements and Penalty Abatement

When filing delinquent returns or responding to penalty notices, we may prepare reasonable cause statements on your behalf explaining circumstances that contributed to late filing or non-compliance. You acknowledge that the IRS and state tax authorities have sole discretion to accept or reject reasonable cause explanations. The preparation of a reasonable cause statement does not constitute a guarantee that penalties will be abated or reduced.

Factors affecting penalty abatement decisions are outside our control and may include your compliance history, the nature and duration of the delay, and the specific facts and circumstances of your situation. You remain responsible for any penalties, interest, and related costs assessed by the IRS or state tax authorities regardless of reasonable cause arguments made on your behalf.

If your situation involves willful non-compliance, ongoing IRS examination, or penalties exceeding $50,000, we may recommend that you engage a tax attorney for specialized representation. We will advise you if we believe your situation requires specialized representation beyond the scope of our services.

Accuracy of Information. You will provide truthful, accurate, and complete information for any reasonable cause statement we prepare on your behalf. The statement will be based solely on facts you provide. You represent that all facts provided are true and accurate to the best of your knowledge. We are not responsible for verifying the truthfulness of information you provide, and we are entitled to rely on your representations. Providing false or misleading information to the IRS may constitute fraud and result in civil and/or criminal penalties. You agree to indemnify and hold harmless the Firm from any claims arising from false or misleading information you provide for reasonable cause statements.

Bookkeeping Assistance

We may deem it necessary to provide you with limited accounting and bookkeeping assistance solely for the purpose of helping you organize your information. This assistance is intended to be nominal and is not a separate accounting or bookkeeping service. In the event we conclude that bookkeeping or accounting assistance is necessary to prepare your tax returns, we will advise you in writing before proceeding. Any assistance will be billed at our standard hourly rates and will be subject to the terms of this Agreement.

Error Discovery

If we discover an error in work we performed under this Agreement, we will notify you promptly and discuss corrective options. Correction of errors caused by inaccurate, incomplete, or untimely information you provided is not within the scope of this engagement and may be billed at our standard hourly rates. Correction of errors caused solely by our firm will be corrected at no additional charge, subject to the Limitation of Liability provisions herein. Our obligation to correct errors at no charge does not extend to errors discovered more than three (3) years after the filing of the affected return.

Draft Work Product

Any documents marked “draft,” “preliminary,” or provided for your review prior to finalization are preliminary and may contain errors or omissions. You may not rely on, file, or submit draft documents to any tax authority, financial institution, or third party. We are not responsible for any consequences arising from your reliance on, filing of, or submission of draft documents. Final work product will be clearly identified as such.

Client Responsibilities for Tax Services

Authority to Engage

By signing the engagement letter, you represent and warrant that you have full authority to bind yourself or the entity named in the engagement letter to this Agreement and to provide all information necessary for the services described herein. If signing on behalf of an entity, you represent that you are duly authorized by that entity to enter into this Agreement on its behalf.

Reliance on Information Provided

We will rely on the accuracy and completeness of information you provide without independent verification or audit. You represent and warrant that all information provided to us is true, complete, and accurate to the best of your knowledge. This includes information provided directly by you, through your representatives, via our client portal, or through integrated third-party systems.

We have no obligation to verify, audit, or independently confirm information you provide, and we shall not be liable for any deficiency, penalty, interest, or other consequence resulting from your failure to provide accurate, complete, or timely information—including information you inadvertently omit. If information you provide is later determined to be inaccurate or incomplete, you remain responsible for any resulting tax, penalties, interest, and professional fees incurred to correct the affected returns.

Client Cooperation and Responsiveness

You agree to respond to our requests for information, documentation, or clarification within ten (10) business days of our request, unless a shorter timeframe is required by filing deadlines or other circumstances we communicate to you. Failure to provide timely information may result in:

(a) Inability to meet filing deadlines, for which we bear no liability for resulting penalties or interest;

(b) Additional fees for rush processing at 100% of the base service fee, or our then-current hourly rates for time-based services;

(c) Delay in the delivery of services or work product;

(d) Termination of the engagement pursuant to the Termination and Withdrawal provisions herein.

We are not responsible for penalties, interest, missed elections, or other consequences resulting from your failure to provide timely information, access, or responses. If our performance of the Services is prevented or delayed by any act or omission by you or your agents, vendors, consultants, or employees, we will not be in breach of our obligations or otherwise liable for any related costs, charges, or losses incurred by you.

Electronic Payments Requirement

IMPORTANT: The Modernizing Payments To and From America’s Bank Account Executive Order, signed on March 25, 2025, mandated that all payments from the U.S. government after September 30, 2025, must be made electronically. All payments to the U.S. government, including quarterly estimated tax payments, should be made electronically as soon as practicable. We do not process tax payments on your behalf. You are solely responsible for initiating and completing all tax payments by the applicable due dates. Payments can be made via IRS Direct Pay at irs.gov/payments/direct-pay or other authorized methods. We shall not be liable for any tax, penalties, interest, or other expenses you may incur as a result of late payment or non-payment.

IRC §7216 Consent and Contractor Exception

Federal law under Internal Revenue Code §7216 restricts tax return preparers from disclosing or using your tax return information except as permitted by law. The engagement letter does not replace any individual consent required under §7216.

Certain disclosures to service providers who assist in tax return preparation do not require individual client consent. Under Treas. Reg. §301.7216-2(d)(2), we may disclose tax return information to contractors and service providers who assist in the preparation of your returns, provided they are bound by written confidentiality agreements and use the information solely for tax preparation purposes. Our use of tax preparation software, AI-assisted processing tools (including services provided by Anthropic, PBC and TracePrep Inc.), and other professional tools falls within this contractor exception. Written data processing agreements with each of these providers are on file at our firm.

A separate §7216 consent form will be provided when disclosure outside the contractor exception is required — for example, when sharing your information with third parties for purposes other than tax return preparation. Our Privacy Policy at sdocpa.com/privacy describes our data handling practices in full.

Privacy Policy and Data Rights

Our collection, use, and disclosure of your personal information is governed by our Privacy Policy, available at sdocpa.com/privacy. The Privacy Policy describes:

• The categories of information we collect and how we use it
• Our disclosure practices and the service providers we use
• Your rights under the Texas Data Privacy and Security Act (TDPSA), including the right to access, correct, delete, or obtain a portable copy of your personal data
• Our data breach notification obligations and procedures
• Our data retention practices

To exercise your privacy rights or submit a privacy inquiry, contact us at sdocpa.com/contact or 972-296-0981.

Corporate Transparency Act (BOI Reporting)

Assisting you with your compliance with the Corporate Transparency Act (“CTA”), including beneficial ownership information (“BOI”) reporting, is not within the scope of this engagement. You have sole responsibility for your compliance with the CTA, including its BOI reporting requirements and the collection of relevant ownership information. We shall have no liability resulting from your failure to comply with CTA. Information regarding the BOI reporting requirements can be found at https://www.fincen.gov/boi. Consider consulting with legal counsel if you have questions regarding the applicability of the CTA’s reporting requirements.

Documentation Responsibility

You are responsible for maintaining adequate documentation to substantiate the accuracy and completeness of your tax returns. Our workpapers do not satisfy your documentation responsibility. You should retain all documents that provide evidence and support for reported income, credits, deductions, and other information on your returns, as required under applicable tax laws and regulations. The IRS recommends that you maintain this documentation for as long as it may be relevant to your taxes. You represent that you have such documentation and can produce it, if necessary, to respond to any examination or inquiry by tax authorities. You will be responsible for any liability resulting from the disallowance of tax deductions due to inadequate documentation.

Personal Expenses

In general, personal expenses are not deductible for income tax purposes. You are responsible for ensuring that personal expenses, if any, are separated from business expenses and that expenses such as meals, travel, vehicle use, gifts, and related expenses are supported by documentation and records required by the IRS and other tax authorities.

State and Local Filing Obligations

The preparation of any state or local tax return not listed in the Engagement Objective and Scope section of the engagement letter is not within the scope of our engagement. You are responsible for fulfilling your filing obligations with any state or local tax authorities, including but not limited to, income, franchise, sales, use, and property taxes or abandoned and unclaimed property. If you are unsure if you have any other filing obligation with other state or local tax authorities, you are responsible for alerting us and requesting assistance. You will be responsible for tax due and penalties associated with the failure to file or untimely filing of any form for which we were not engaged to prepare.

U.S. Filing Obligations Related to Foreign Investments and Activities

U.S. citizens, residents, and entities generally must report income and activities related to both domestic and foreign assets (worldwide income). You are responsible for fulfilling your filing obligations related to foreign activity where required. U.S. reporting requirements related to foreign activity are very complex. Contact us immediately if you have:

• Ownership of, investment in, or officer responsibilities for a corporation, partnership, or other business entity formed under the laws of another country
• Fiduciary, grantor, or beneficiary relationships in connection with an entity formed under the laws of another country
• Ownership of, signature authority over, or control over any financial account held in a financial institution located in another country
• Citizenship or government-approved employment/visa status with a country other than the U.S.
• Transferred property, including cash, offshore either directly or through investment in a foreign entity
• Received property, including cash, from a trust, business, or investment formed under foreign laws
• Conducted business with any entity or person physically located in another country
• Received income from a source outside of the U.S. not reported on a brokerage statement
• Any other activity or economic arrangement which takes place outside of the U.S.

Failure to timely file the required forms may result in substantial civil and/or criminal penalties. If you do not alert us or request assistance, we will infer that you do not have foreign activity. You will be responsible for tax due, penalties, and interest associated with the failure to file any form for which we were not engaged to prepare.

Foreign Filing Obligations

You are responsible for complying with the tax filing requirements of any non-U.S. country. You acknowledge and agree that we have no responsibility to raise these issues with you and that any foreign filing obligation is not within the scope of this engagement.

Digital Assets

There are specific tax implications of investing in digital assets (e.g., virtual currencies, non-fungible tokens, virtual real estate and similar assets). The IRS considers these to be property for U.S. federal income tax purposes. As such, any transactions in, or transactions that use, digital assets are subject to the same general tax principles that apply to other property transactions. If you transacted in digital assets during the tax year, you may have tax consequences and/or additional reporting obligations. You are responsible for providing us with complete and accurate information, including basis, regarding any digital asset transactions.

Information Return Penalties

Certain information returns carry substantial penalties for late filing, failure to file, or incomplete or inaccurate filing. These returns include, but are not limited to:

• Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations)
• Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation)
• Form 3520 (Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts)
• Form 3520-A (Annual Information Return of Foreign Trust With a U.S. Owner)
• Form 8865 (Return of U.S. Persons With Respect to Certain Foreign Partnerships)
• FinCEN Form 114 (FBAR — Report of Foreign Bank and Financial Accounts) — see FBAR section below for penalty details
• Form 8938 (Statement of Specified Foreign Financial Assets)

Penalties for these returns may be assessed per form, per year, and can accumulate rapidly. For example, the penalty for failure to file Form 5472 is $25,000 per form per year, with additional penalties for continued non-compliance after IRS notification.

You are responsible for timely providing all information necessary for the preparation of required information returns. You are also responsible for alerting us to any foreign ownership, foreign accounts, foreign activities, or reportable transactions that may trigger information return filing requirements.

We shall not be liable for penalties resulting from information you fail to provide, provide late, or provide inaccurately. If you are uncertain whether you have information return filing obligations, you are responsible for requesting our assistance in making that determination.

Compensation and Withholding Compliance

If you or your business compensates individuals for services performed, there are various federal, state, and/or local payroll tax and income tax obligations. We will not provide employment, labor, or immigration law advice, including the classification of workers as employees or independent contractors. You should seek the advice of an employment attorney to address classification questions. You agree to indemnify and hold us harmless for any claims related to misclassification of individuals whom you compensate for services, excepting claims arising from our gross negligence or intentional wrongful acts.

You acknowledge it is your responsibility to timely comply with all payroll tax filing and remittance obligations. Preparation of payroll forms and calculation of any withholding amount due is not within the scope of this engagement unless specifically stated in the engagement letter.

FBAR (FinCEN Form 114) — Report of Foreign Bank and Financial Accounts

FBAR is not a tax return. It is a financial disclosure report filed with the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of the Treasury under the Bank Secrecy Act (31 U.S.C. § 5314) and its implementing regulations (31 C.F.R. Part 1010). FBAR is separate from and independent of your federal income tax return. It is filed electronically through the BSA E-Filing System, not through the IRS e-file system, and is not governed by the Internal Revenue Code or Circular 230.

Our standard of care for FBAR engagements is based on applicable FinCEN and Treasury guidance under the Bank Secrecy Act, not on the SSTS or Circular 230 which apply to tax return preparation. References in these Terms to “tax authority,” “IRS,” “tax return,” or “the Code” do not apply to FBAR unless expressly stated.

Scope of FBAR Services

Preparation and filing of FinCEN Form 114 is not included in your tax preparation engagement unless expressly stated in the engagement letter. If you have or may have a foreign account filing obligation, you are responsible for requesting FBAR assistance separately. If FBAR preparation is not listed in your engagement letter and you have a reportable foreign account, you remain solely responsible for ensuring timely FBAR filing.

If we are engaged to file FBAR on your behalf, that engagement is governed by these Terms as supplemented by the engagement letter. We will rely on your disclosure of all foreign accounts and maximum account balances; we do not independently verify foreign account holdings or balances.

Filing Obligation Thresholds

You may be required to file an FBAR if you are a U.S. person who, at any time during the calendar year, had a financial interest in, signature authority over, or other authority over one or more financial accounts located outside of the United States and the aggregate maximum value of all such accounts exceeded $10,000 at any point during the year. You are not required to own the account — signature authority alone (such as authority over a business account of a foreign employer or related entity) is sufficient to trigger the filing obligation.

You are responsible for identifying and disclosing to us all foreign financial accounts for which you hold either a financial interest or signature authority, regardless of whether you have an ownership stake in the underlying account.

Filing Deadlines

The FBAR annual filing due date is April 15, with an automatic extension to October 15. There is no separate extension form required.

FBAR E-Filing

FBAR must be filed electronically through FinCEN’s BSA E-Filing System. It cannot be submitted to the IRS and is not subject to the IRS e-file authorization procedures described elsewhere in these Terms. Where we are engaged to file FBAR on your behalf, you authorize us to submit FinCEN Form 114 through the BSA E-Filing System using FinCEN’s third-party filer authorization process. You remain responsible for reviewing the completed form for accuracy prior to submission.

FBAR Penalty Structure

FBAR penalties are imposed by FinCEN and the U.S. Department of Justice, not the IRS. Penalties for FBAR non-compliance are distinct from tax penalties and are not subject to IRS abatement procedures. Penalties may be assessed as follows:

Non-willful violations: Up to $10,000 per violation per year (adjusted for inflation under the Federal Civil Penalties Inflation Adjustment Act).

Willful violations: The greater of $100,000 or 50% of the highest aggregate account balance for each violation per year. Willful violations may also result in criminal prosecution, including fines and imprisonment.

You acknowledge that the distinction between willful and non-willful non-compliance is determined by FinCEN and the courts based on facts and circumstances, and that “willful blindness” (deliberate avoidance of knowledge of the filing obligation) may be treated as willful. We do not make this determination and cannot represent that your non-compliance, if any, will be treated as non-willful.

FBAR Reasonable Cause

If you have failed to file FBAR for prior years, we may prepare reasonable cause statements requesting penalty mitigation. You acknowledge that FinCEN has sole discretion to accept or reject reasonable cause explanations, and that the standards for reasonable cause differ from IRS penalty abatement standards. The preparation of a reasonable cause statement does not constitute a guarantee that penalties will be waived or reduced. You remain responsible for all penalties assessed regardless of reasonable cause arguments made on your behalf.

FBAR Record Retention

You are responsible for maintaining records of all foreign financial accounts, including account statements, maximum balances, and documentation of signature authority, for at least six (6) years from the FBAR due date. Our workpapers do not satisfy your record retention obligation.

FBAR and Related Filing Obligations

Your FBAR filing obligation may exist independently of, or in addition to, obligations to file Form 8938 (Statement of Specified Foreign Financial Assets), Form 3520 (Annual Return to Report Transactions with Foreign Trusts), or other information returns. Engagement to prepare FBAR does not include preparation of these additional forms unless expressly stated in the engagement letter.

Foreign-Owned Entity Reporting

If you are a U.S. corporation (including an entity disregarded as separate from its owner for U.S. tax purposes) that is 25% or more foreign-owned, or if you are a foreign corporation engaged in a U.S. trade or business, you may be required to file Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business) to report transactions with related foreign parties.

Form 5472 must be attached to a timely filed Form 1120 (or Form 1120 filed as a pro forma return for disregarded entities). A separate Form 5472 is required for each related foreign party with whom you had reportable transactions during the tax year.

You are responsible for:

• Identifying all foreign persons who are related parties as defined under IRC §267 and §707
• Providing complete and accurate information regarding all reportable transactions with each related party
• Maintaining records sufficient to establish the correctness of Form 5472 for at least seven (7) years from the filing date
• Alerting us to any changes in foreign ownership during the tax year

Failure to timely file Form 5472, or filing an incomplete or inaccurate return, may result in penalties of $25,000 per form per year, with additional penalties for continued non-compliance. These penalties apply regardless of whether any tax is due.

Arm’s Length Transactions. You represent and warrant that all transactions with related foreign parties reported on Form 5472 or any other information return were conducted at arm’s length and reflect fair market value. You are responsible for maintaining documentation to support the arm’s length nature of these transactions, including any transfer pricing documentation required under IRC §6662(e). We rely on your representation that transactions are arm’s length; we do not independently evaluate or verify pricing.

Transfer Pricing. We do not provide transfer pricing studies, economic analyses, or advice regarding the arm’s length nature of intercompany transactions. Transfer pricing compliance is a specialized area requiring economic analysis beyond the scope of tax return preparation. If you require transfer pricing advice, you should engage a qualified transfer pricing specialist. We do not verify or opine on whether your transactions with related parties meet arm’s length standards under IRC §482 or applicable Treasury Regulations.

Delinquent Filings. If you are filing Form 5472 or other information returns for prior tax years, you acknowledge that penalties of $25,000 per Form 5472 per year (or the applicable penalty for other information returns) may be assessed by the IRS. While we may prepare reasonable cause statements on your behalf explaining circumstances that contributed to late filing, the IRS has sole discretion to accept or reject reasonable cause explanations, and penalty abatement is not guaranteed.

Representation in any penalty dispute, appeal, or abatement proceeding beyond the initial reasonable cause statement included in the filing is not within the scope of this engagement and would require a separate written agreement. You accept full responsibility for any penalties, interest, and related costs assessed by the IRS or state tax authorities regardless of reasonable cause arguments made on your behalf.

If your situation involves willful non-compliance, ongoing IRS examination, or potential penalties exceeding $50,000, we may recommend that you engage a tax attorney for specialized representation.

Entity Election Services

The provisions in this section apply to engagements for entity classification elections, including S-corporation elections (Form 2553), entity classification elections (Form 8832), and related filings.

Scope of Election Services

Our engagement is limited to evaluating your apparent eligibility for the requested election based on information you provide, preparing the applicable IRS form and any required attachments (including reasonable cause statements for late elections), and providing filing instructions or submitting the election to the IRS on your behalf if agreed in writing. Our engagement does not include preparing the entity’s annual tax return (Form 1120-S, Form 1065, or other returns), preparing individual tax returns for owners or shareholders, preparing state or local entity classification elections unless explicitly listed in the engagement letter, establishing or administering payroll, determining reasonable compensation, performing valuation work, or providing legal advice regarding entity formation, corporate law, shareholder agreements, or securities matters.

No Guarantee of Acceptance

We cannot guarantee that the IRS will accept your election. The IRS has sole authority to approve or deny entity classification elections, including requests for late-election relief. Our services are limited to preparing and submitting the election based on the facts you provide.

Late-Election Relief

If you are requesting late-election relief under Revenue Procedure 2013-30 or other IRS guidance, you acknowledge that the IRS has sole discretion to grant or deny relief. The preparation of a reasonable cause statement does not constitute a guarantee that late-election relief will be granted. You are responsible for providing truthful, accurate, and complete information regarding the circumstances that caused the late filing. Providing false or misleading information to the IRS may constitute fraud and result in civil and criminal penalties. You agree to indemnify and hold harmless the Firm from any claims arising from false or misleading information you provide for reasonable cause statements.

If the IRS denies the late-election request, any further action — including appeal, resubmission, alternative election strategies, or representation before the IRS — would require a separate written engagement.

Eligibility and Ongoing Compliance

Our evaluation of your eligibility for the requested election is based solely on information you provide at the time of the engagement. We do not monitor your ongoing compliance with election requirements after the election is filed. After an S-corporation election is effective, you are solely responsible for:

• Operating the entity in a manner consistent with S-corporation rules, including maintaining only one class of stock
• Establishing and running payroll for shareholder-employees and paying reasonable compensation
• Maintaining appropriate books, records, and shareholder basis tracking
• Meeting all federal, state, and local filing and payment obligations
• Ensuring that no event occurs that would inadvertently terminate the S-corporation election (such as exceeding the shareholder limit, admitting an ineligible shareholder, or creating a second class of stock)

These items are outside the scope of this engagement. We may assist with these matters under separate written engagements.

Shareholder Consent

You are responsible for obtaining all required shareholder consents for the election, including consents from spouses where community property laws apply. We will advise you of the consent requirements, but obtaining timely and valid consents is your responsibility. An election may be invalid if required consents are missing or defective.

State Elections

Federal entity classification elections do not automatically apply at the state level. Many states require separate elections, notifications, or filings. Unless the engagement letter specifically lists state elections in the scope of services, you are responsible for determining and completing any required state-level filings. You will be responsible for any taxes, penalties, or interest resulting from failure to make required state elections.

Individual Tax Return Provisions

The following provisions apply to individual (Form 1040) tax returns.

Confidentiality for Joint Filers

If the tax returns prepared in connection with this engagement are filed using the married filing jointly filing status, both spouses are deemed to be clients of the firm under the terms of the Agreement. Both spouses acknowledge that any tax return information, including supporting documents provided to us, used in the preparation of your joint return, and any communications made to us by either of you in connection with the preparation of your joint return, may ultimately be shared with either spouse, without prior consent of the other.

All Income Disclosure

You are responsible for identifying and communicating to us all income earned and received by you from any U.S. or non-U.S. source. This includes income earned from gambling and online wagers, gig or hobby work, and activity for which you should receive a Form 1099-K (online sales) whether or not you actually receive a 1099-K.

Gifts from Foreign Persons

The preparation of IRS Form 3520 or Form 3520-A is not within the scope of this engagement. If you transferred property to or received property from a foreign person or trust, or are a U.S. person who “owns” assets in a foreign trust, you may be required to file a separate IRS Form 3520 or Form 3520-A. You are responsible for providing us with details of any cash, property, or value exchanged with foreign persons or trusts.

Estate, Trust, and Gift Tax Provisions

The following provisions apply to estate (Form 706), trust (Form 1041), and gift (Form 709) tax returns.

Trust Accounting Income

You are responsible for the calculation of trust accounting income. We will not audit or otherwise verify the data you submit, although we may ask you to clarify your calculations.

Appraisals and Valuations

Determining the value of property to be reported on estate or gift tax returns, other than cash or publicly traded securities, may require an appraisal or valuation. You acknowledge that you are responsible for both engaging a qualified independent third party to determine values of assets other than cash or publicly traded securities, and for obtaining formal, complete written appraisals as may be required by law.

In preparing the tax returns, we will rely on the appraisal you provide. However, our reliance shall not be unreasonable. If you do not provide a formal appraisal where we believe IRS rules require, or if we, in our professional judgment, determine that the appraiser used is not professionally qualified for the type of asset being appraised, we may be unable to proceed with filing your tax returns.

Tax Return Elections

Estate, trust, and gift tax returns include elections that may affect both the taxes owed now and the future income and estate taxes owed by heirs and beneficiaries. We will explain tax return elections and provide recommendations based upon the information you provide. However, you remain responsible for consulting with any necessary attorney, as well as the heirs and beneficiaries, as needed, regarding the advisability of making such elections. You agree to instruct us in writing regarding the tax return elections to be made or declined.

Crummey Notices

A Crummey trust is created for the purpose of making annual exclusion gifts to beneficiaries while retaining the assets in trust. The beneficiary recipient must be notified of the temporary right to withdraw from the trust all or a portion of the gift (a Crummey notice) at the time the gift is made. The notification letter is sent by the trustee to the beneficiary of the trust. You acknowledge that it is your responsibility, as trustee, to send and retain such notices in the event of a future examination.

Estate or Trust Expense Deductions

In the year of death, certain expenses may be deductible on either the estate tax return (Form 706) or on the estate’s income tax return (Form 1041). While we will explain the options to you, you should discuss the options with the estate’s attorneys, other advisors, heirs and beneficiaries. You must notify us, in writing, of your election of where to take these deductions.

Gift Tax Statute of Limitations

The IRS can assess a gift tax liability within three (3) years after the due date of the return, or three (3) years after the return is actually filed, whichever is later. If a gift is determined not to have been adequately disclosed per Treasury Regulations, the three (3) year statute of limitations on assessment does not begin to run, meaning the IRS may assess gift tax and/or penalties at any time. You should retain copies of all previously filed gift tax returns until the date of your death to substantiate the usage of your lifetime exclusion.

Portability Election

If an estate tax return is filed so that a surviving spouse may receive the benefit, for estate tax purposes, of using the decedent’s unused lifetime gift exemption (“portability”), the statute of limitations for the decedent’s estate tax return does not expire until the statute of limitations expires for the estate tax return of the surviving spouse.

Amended Tax Return Provisions

The following provisions apply to amended tax return engagements.

No Guarantee of Acceptance

The IRS and state tax authorities are not required to accept an amended tax return. Our preparation of your amended return does not constitute a guarantee that the IRS or state tax authority will accept, process, or ultimately agree with the positions taken on the return.

Statute of Limitations Impact

If an amended return assessing additional tax is filed within 60 days of the day the statute of limitations would otherwise expire, the statute of limitations is extended an additional 60 days.

State Notification Requirements

Several states require notification when an amended federal tax return is accepted, as a change to federal taxable income may affect state taxable income. Similarly, an amendment to a flow-through entity (partnership or S corporation) return may produce an amended K-1 which affects the tax liability of partners, members, or shareholders. You are responsible for ensuring that all impacted parties are notified of changes to their K-1s.

Tax Consulting Services Provisions

The following provisions apply to tax consulting engagements.

Consulting Standard of Care

Tax consulting services will be performed in accordance with the AICPA Statement on Standards for Consulting Services, Circular 230, and the SSTS.

No Guarantee of Outcome

With any tax consulting, it is possible that the IRS or other revenue authorities may disagree with tax positions taken or tax benefits claimed. We do not guarantee, either expressly or impliedly, any outcome or success of any examination of your tax filings by revenue authorities.

Implementation Responsibility

You have final responsibility for the use and implementation of the tax consulting services. We will provide you with a draft copy of the deliverable(s) for review prior to finalization. You agree to review and examine deliverables carefully for accuracy and completeness. You are solely responsible for determining the suitability of any recommendations and ensuring proper implementation.

Bookkeeping Services

The provisions in this section apply to all bookkeeping engagements unless specifically modified in the engagement letter.

Standard of Care for Bookkeeping

We will perform bookkeeping services with reasonable care and professional diligence. Our bookkeeping operations follow standardized processes based broadly on generally accepted accounting principles (GAAP), where applicable and feasible. However, we do not guarantee full GAAP compliance, and financial statements prepared by us may vary from strict GAAP standards based on your instructions or Company-specific situations.

You acknowledge that bookkeeping services are distinct from audit, review, or compilation engagements. Our services do not constitute any form of audit, review, or assurance engagement as defined by the American Institute of Certified Public Accountants (AICPA).

No Audit or Assurance Services

We do not provide audit, assurance, or attestation services of any kind in connection with our bookkeeping engagement. This includes, but is not limited to:

• Certifications of GAAP compliance
• Assessments of internal controls
• Fraud risk assessments
• Opinions on the accuracy or completeness of financial statements
• Compilation reports or review reports

AICPA guidelines require that audits be performed by a firm independent from the entity’s bookkeeper. If you require audit, review, or assurance services, you should engage an independent audit firm.

No Fraud Detection Responsibility

Accuracy of information provided to us, the design and maintenance of internal controls, and any representations made are the sole responsibility of your management. We do not take any responsibility to audit, detect, prevent, or remedy potential fraud, embezzlement, theft, or errors by management or your employees. If fraud detection or internal control assessment is required, you should engage an independent audit firm or forensic accountant.

Management Responsibility for Estimates and Judgments

Preparation of financial statements may require management to make estimates and assumptions that affect the amounts reported and disclosed. On an ongoing basis, management is responsible for evaluating estimates including, but not limited to:

• Bad debt allowances and sales allowances
• Fair values of financial instruments
• Intangible asset and goodwill valuations
• Useful lives of intangible assets and property and equipment
• Income tax accruals and deferred tax calculations
• Contingent liabilities
• Inventory valuations and write-downs

Management should base estimates on assumptions, both historical and forward-looking, that management believes to be reasonable. We will record estimates as directed by management but do not independently verify their reasonableness or accuracy. Actual results could differ materially from management’s estimates.

Single Entity Scope

Unless otherwise indicated in the engagement letter, our bookkeeping services are limited to the single entity that signs the engagement letter. We do not provide bookkeeping for related entities, subsidiaries, or variable interest entities unless explicitly engaged to do so.

If you require consolidated financial statements across multiple entities, you must: (a) inform us of all related entities, and (b) purchase bookkeeping services for consolidated financial statements under a separate or modified engagement. In such cases, intercompany balances and transactions will be eliminated in consolidation.

Revenue and Expense Recognition

We rely on management to provide data with respect to revenue and expense recognition based on pre-agreed workflows. Revenue is recognized when management believes: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred or services have been rendered; (c) the arrangement fee is fixed or determinable; and (d) collectability is reasonably assured.

We do not independently verify whether revenue recognition criteria have been met. You are responsible for ensuring that revenue and expense recognition complies with applicable accounting standards and tax law.

Balance Sheet Accounts

We maintain balance sheet accounts based on records, statements, or communications provided by management. Specific account responsibilities include:

Inventory: Inventory balances are recorded based on information from management or third-party inventory management systems. We rely on management to: (a) verify physical inventory counts; (b) identify obsolete or slow-moving inventory; and (c) determine required write-downs. Physical inventory counts and inventory valuations are management’s responsibility.

Fixed Assets: Property and equipment over the fixed asset threshold are recorded at cost. Management is responsible for identifying assets to be capitalized, determining useful lives, and notifying us of asset disposals. We calculate depreciation using the straight-line method based on useful lives provided by management or IRS/industry standards.

Accounts Receivable and Payable: We record receivables and payables based on information you provide. Management is responsible for collection efforts, aging analysis, and determining bad debt write-offs.

Monthly Close Process

Our standard monthly close process includes:

• Reconciling bank and credit card accounts to statements
• Reconciling payroll entries against your payroll system
• Categorizing bank and credit card transactions
• Recording prepaid expenses, depreciation, and standard accruals
• Analyzing variance in profit and loss and balance sheet accounts

We will identify significant variances and items requiring management input. However, resolution of variances and final determination of account accuracy and completeness is management’s responsibility.

Financial Statement Limitations

Financial statements prepared in connection with our bookkeeping engagement:

• Are prepared for your internal use and are not intended for external distribution
• Have not been audited, reviewed, or compiled in accordance with AICPA standards
• May not comply with GAAP in all respects
• Should not be relied upon by banks, lenders, investors, creditors, or other third parties

We disclaim any responsibility to third parties who obtain or rely upon financial statements prepared by us. If you intend to provide financial statements to third parties, you should disclose that the statements were prepared by a bookkeeper and have not been audited or reviewed by an independent accountant.

Third-Party Reliance Disclaimer

Our bookkeeping services and any financial statements or reports we prepare are intended solely for your internal management purposes. We do not consent to the use of our work product by any third party, including but not limited to:

• Banks, lenders, or financial institutions
• Investors, private equity firms, or venture capital firms
• Potential acquirers or merger partners
• Regulatory agencies (except as required by law)
• Credit rating agencies
• Litigation parties

If third-party reliance is required, you should engage an independent CPA firm to perform a compilation, review, or audit engagement appropriate for third-party use.

Financial Account Access and Authorization

By entering into a bookkeeping engagement, you authorize us to access your bank accounts, credit card accounts, and other financial systems solely for the purpose of viewing and downloading transaction data to provide bookkeeping services. Unless otherwise specified in the engagement letter (such as for Back-Office services), this access is strictly read-only, and we will not transfer, manage, or otherwise manipulate funds.

You are responsible for:

• Granting access through secure platform features (such as QuickBooks Online user permissions) rather than sharing login credentials directly
• Maintaining two-factor authentication where available
• Promptly notifying us of any suspected unauthorized access
• Ensuring the security of your own financial accounts

We are not liable for unauthorized transactions, data breaches, or security incidents arising from your failure to follow recommended security practices or your direct sharing of login credentials.

Software and Subscriptions

If our engagement includes maintaining software subscriptions on your behalf (such as QuickBooks Online), the following terms apply:

Ownership: Unless otherwise agreed in writing, software accounts and data remain your property. Upon termination of the engagement, we will assist with transitioning account access to you or your designee.

Subscription Fees: Subscription fees will be billed to you as part of our regular invoicing. You authorize us to maintain the subscription at the level necessary to provide the agreed-upon services.

Data Responsibility: While we maintain the subscription, you remain responsible for ensuring that data in the system is backed up and that you retain copies of financial records for your own files. We are not a data backup service.

Catch-Up and Cleanup Bookkeeping

If your books require catch-up or cleanup work for prior periods, this work will be scoped and billed separately from ongoing monthly bookkeeping. The scope of catch-up work, including the number of months and estimated fees, will be determined during onboarding and documented in your engagement letter or a separate statement of work.

Catch-up bookkeeping is limited to organizing and recording historical transactions. It does not include reconstruction of records from incomplete data, forensic analysis, or fraud investigation.

Volume-Based Pricing

Monthly bookkeeping fees are based on anticipated transaction volume and complexity. If your actual activity exceeds the levels specified in your engagement letter (such as monthly expense thresholds or number of financial accounts), additional fees will apply as specified in the engagement letter.

We will notify you of pricing tier changes when they occur. Continued use of our services after notification constitutes acceptance of the adjusted pricing.

Client Responsibilities for Bookkeeping Services

Information and Documentation

You agree to provide all necessary documents and access, including but not limited to:

• Bank statements, sales reports, and credit card statements
• Supporting documentation for deposits and expenditures (invoices, receipts, contracts)
• Read-only online access to financial accounts and related systems
• Disclosure and documentation of all business-related transactions conducted outside company accounts, including transactions through personal accounts
• Any other documentation required to complete financial records

You are responsible for all management decisions and for designating an individual with suitable skills, knowledge, and experience to oversee our bookkeeping services. You are responsible for evaluating the adequacy and results of services performed and accepting responsibility for such services.

Timely Response

You agree to respond to our requests for information, clarification, or approval within five (5) business days of our request, unless a different timeframe is specified. Failure to provide timely responses may result in:

• Delays in completing monthly close procedures
• Inaccurate or incomplete financial statements
• Additional fees for expedited processing when delayed information is provided

We are not responsible for financial statement inaccuracies or delays caused by your failure to provide timely or accurate information.

Ultimate Responsibility

You have ultimate responsibility for the accuracy of your financial records and compliance with applicable laws and regulations. Our role is to record and organize financial information based on what you provide. We do not independently verify the legitimacy, accuracy, or completeness of underlying transactions.

Accounts Payable and Payment Processing Services

Authorization and Third-Party Processing

By engaging us for accounts payable services, you authorize us to process payments on your behalf through our third-party payment processing vendor. This authorization includes:

• Initiating ACH payments and check payments to vendors you approve
• Accessing payment account information you provide
• Processing payments according to the approval thresholds specified in your engagement letter

You acknowledge that payments are processed through a third-party platform and that we are not responsible for:

• Payment processor errors, delays, or system outages
• Third-party processor fees for expedited or card-based payment options
• Payment processing delays caused by incorrect banking information
• Bank or payment processor policy changes

Client Responsibilities for Payment Processing

You are responsible for:

• Timely Submission: Providing invoices within the timeframe specified in your engagement letter to allow for timely payment processing
• Timely Approvals: Responding to payment approval requests within the timeframe specified in your engagement letter
• Sufficient Funds: Ensuring sufficient funds are available in designated payment accounts before scheduled payment runs
• Accurate Information: Providing and maintaining accurate vendor information and banking details
• Vendor Management: All vendor relationships, contract terms, pricing negotiations, and dispute resolution

You are responsible for all insufficient funds fees, returned payment fees, bank charges, and any resulting vendor late fees or penalties.

Scope and Limitations

Our accounts payable services are limited to processing payments based on invoices and approval instructions you provide. We do not:

• Verify invoice accuracy, pricing, or contract compliance
• Audit vendor invoices or supporting documentation
• Negotiate vendor contracts or payment terms
• Resolve vendor disputes or billing disagreements
• Detect or investigate fraudulent invoices or vendor impersonation
• Guarantee vendor payment satisfaction or relationship management

We perform basic reasonableness checks (duplicate payments, unusual amounts, new vendors flagged for confirmation) but do not conduct forensic review or fraud detection services.

Liability Limitations for Payment Processing

In addition to the liability limitations elsewhere in these Terms, we are specifically not liable for:

• Late vendor payments resulting from your delayed invoice submission or approval responses
• Vendor late fees, penalties, or relationship issues resulting from client delays
• Insufficient funds fees or returned payment fees
• Payment processing errors caused by incorrect information you provide
• Vendor disputes, pricing disagreements, or contract interpretation issues
• Fraudulent invoices, vendor impersonation, or payment redirection schemes, except where we had actual knowledge of fraud and failed to alert you
• Losses resulting from vendor actions or vendor non-performance
• Third-party payment processor errors, delays, or security breaches

Fraud and Security

While we implement reasonable procedures to identify obvious irregularities, you acknowledge that:

• You remain responsible for verifying vendor legitimacy and invoice accuracy
• Sophisticated fraud schemes may not be apparent from invoice review alone
• We are not providing fraud detection, forensic accounting, or security services
• You should implement your own internal controls and vendor verification procedures

We will notify you of obvious red flags or suspicious activity when identified, but you acknowledge this does not constitute a comprehensive fraud prevention service.

Billing and Payment Terms

Fee Estimates and Pricing Calculator

Fee estimates provided through our website, pricing calculator, initial consultations, or other communications are based on information available at the time of the estimate and are for informational purposes only. Estimates are not binding quotes and do not constitute an offer or acceptance of services at the estimated price.

Final pricing is determined by the actual complexity of your return and the work required to complete the engagement, including but not limited to: foreign activity, multi-state filing requirements, K-3 requirements, additional schedules, unreported income sources, prior year amendments, volume of transactions, quality and organization of information provided, and information not disclosed during the estimate process.

Estimates may contain technical errors. We reserve the right to adjust pricing based on actual work required. If we discover complexity that would materially affect pricing (generally exceeding the initial estimate by 25% or more), we will contact you before proceeding with additional work. Your authorization to proceed after such notification constitutes acceptance of the revised pricing.

For additional terms governing use of our online pricing calculator, see the “Website and Online Tools” section above. The automated service routing described in that section is independent of, and does not modify, the fee estimation process described here. Routing to a consultation, self-service portal, or specialist review does not guarantee that the fee estimate will remain unchanged.

Professional Fees

If our Agreement requires a retainer upon execution, you agree that the retainer will be earned as our professional time to complete the engagement is incurred. The retainer will be applied to the final billing, and any unused balance will be refunded at the end of the engagement.

We will bill you for our professional fees and out-of-pocket costs. Payment is due within 15 days of the date on the billing statement. If payment is not received by the due date, you will be assessed interest charges of 1.5% per month on the unpaid balance. You have thirty (30) days from the invoice date to review the invoice and to communicate to us, in writing, any disagreement with the charges, after which you waive the right to contest the invoice.

All outstanding invoices must be paid prior to the release of the work-product(s) specified in the Agreement.

Rush Processing

If you require expedited processing of your tax returns or other deliverables due to late submission of information, short deadlines, or other circumstances requiring prioritization beyond our normal workflow, a rush processing fee of 100% of the base service fee will apply. We will notify you of the rush fee before proceeding, and your authorization to proceed constitutes acceptance of the additional charge.

Saved Payment Methods

Our Client Portal (powered by TaxDome) allows you to save a payment method (credit card, debit card, or bank account) for use in paying invoices issued by the firm. By saving a payment method in the Client Portal, you authorize SDO CPA LLC to charge the saved payment method for invoices you approve through the portal. Payment processing is handled by Stripe, Inc., a third-party payment processor. SDO CPA LLC does not store your full card or bank account details; this information is held by Stripe in accordance with Payment Card Industry Data Security Standards (PCI DSS).

How charges are initiated: We will not charge your saved payment method without your knowledge. Charges are initiated only when: (a) you approve an invoice through the Client Portal and select a saved payment method; or (b) you provide us with written authorization (including email or portal message) to charge a specific invoice to your saved payment method on your behalf. We will not initiate automatic recurring charges against your saved payment method unless you separately opt in to autopay through the Client Portal.

Communication before charges: For any charge we initiate on your behalf under subsection (b) above, we will send you a notification through the Client Portal or email at least two (2) business days before processing, identifying the invoice number and amount. If you do not object within that period, the charge will be processed as described.

Your rights: You may add, update, or remove saved payment methods at any time through the Client Portal. Removing a payment method does not affect charges already processed or invoices already due. Payment disputes are governed by the “Fee Disputes” section below. For disputes related to the payment processor (such as unauthorized charges or processing errors), you should contact us first at sdocpa.com/contact; we will coordinate with Stripe on your behalf.

Fee Disputes

Disputes regarding fees owed shall first be addressed through direct communication between you and our firm. If we are unable to resolve a fee dispute within thirty (30) days of your written dispute notice, either party may pursue collection or resolution through the courts of Dallas County, Texas. The mediation provisions of this Agreement do not apply to disputes solely regarding fees owed.

We reserve the right to suspend or terminate our work for non-payment of fees. In the event that work is discontinued, either temporarily or permanently, as a result of delinquent or non-payment, we shall not be liable for any loss you may incur as a result of the work stoppage, including penalties and interest. In such cases, you assume all risk associated with your failure to meet any governmental or other deadlines.

Termination and Withdrawal

Either party may terminate this Agreement at any time and for any reason by providing written notice to the other party.

Without limiting the foregoing, we may terminate this Agreement or withdraw from providing services immediately upon written notice if:

(a) You fail to pay invoices when due and do not cure such failure within ten (10) days of written notice;

(b) You fail to provide requested information, documentation, or access after reasonable notice and opportunity to comply;

(c) We discover a conflict of interest that cannot be resolved;

(d) We determine that continuing the engagement would require us to violate professional standards, applicable law, or our ethical obligations;

(e) You request that we take a position on your tax return that we cannot support under applicable professional standards;

(f) You engage in conduct that, in our sole judgment, makes the professional relationship untenable;

(g) We reasonably believe you have provided materially false, misleading, or incomplete information;

(h) You violate any material term of this Agreement.

If this Agreement is terminated before services are completed, you agree to pay all fees and expenses we incur through the effective date of termination, plus any non-cancelable costs or commitments made on your behalf.

No Continuing Duty

Upon conclusion of this engagement, we have no obligation to update our work product, notify you of subsequent changes in tax law, monitor your compliance with tax obligations, or provide any ongoing services. Each tax year constitutes a separate engagement requiring a new engagement letter. Our responsibilities under this Agreement end upon the earliest of: (a) electronic acceptance of your tax returns by the IRS/state; (b) delivery of paper copies to you for filing; (c) written notification of termination by either party; or (d) one (1) year from the execution date of this Agreement.

Proprietary Information

You acknowledge that proprietary information, documents, materials, management techniques and other intellectual property are a material source of the services we perform and were developed prior to our association with you. Any new forms, software, documents or intellectual property we develop during this engagement for your use shall belong to us, and you shall have the limited right to use them solely within your business. All reports, templates, manuals, forms, checklists, questionnaires, letters, agreements and other documents which we make available to you are confidential and proprietary to us. Neither you, nor any of your agents, will copy, electronically store, reproduce or make available to anyone other than your personnel, any such documents. This provision will apply to all materials whether in digital, “hard copy” format or other medium.

Conflicts of Interest

If we, in our sole discretion, believe a conflict of interest has arisen affecting our ability to deliver services to you in accordance with either the ethical standards of our firm or the ethical standards of our profession, we may be required to terminate our services without issuing our work product.

Portals

We will utilize TaxDome Inc., a collaborative, virtual workspace in a protected, online environment. TaxDome Inc. permits real-time collaboration across geographic boundaries and time zones and allows SDO CPA LLC and you to share data, engagement information, and deliverables in a protected environment. In order to use TaxDome Inc., you may be required by the provider of TaxDome Inc. to execute a portal agreement and agree to be bound by the terms, conditions and limitations of such agreement. You agree that we have no responsibility for the activities of TaxDome Inc. and agree to indemnify and hold us harmless with respect to any and all claims arising from your misuse of TaxDome Inc.

SDO CPA LLC is not a host for any of your information. You are responsible for maintaining your own copy of this information. We do not provide back-up services for any of your data or records, including information we provide to you. Portals are utilized solely as a method of transferring data and are not intended for the storage of your information. Information on a portal may be deleted by SDO CPA LLC with or without notice to you.

If you decide to transmit your confidential information to us in a manner other than a secure portal, you accept responsibility for any and all unauthorized access to your confidential information. If you request that we transmit confidential information to you in a manner other than a secure portal, you agree that we are not responsible for any liability, including but not limited to, (a) any loss or damage of any nature, whether direct or indirect, that may arise as a result of our sending confidential information in a manner other than a secure portal, and (b) any loss arising as a result of any virus being passed on or with, or arising from any alteration of, any email message.

Security and Communications

Client Responsibility for Security

Clients are responsible for maintaining the security of their bank and financial accounts, including the use of two-factor authentication where available. SDO CPA strongly recommends that clients do not share login credentials directly and instead use secure platform features, such as QuickBooks Online’s user permissions, to grant access. Clients acknowledge that they are responsible for ensuring the protection of their financial information through adequate security measures.

Acknowledgement of Unencrypted Email Risks

If you choose to provide SDO CPA your financial information via electronic transmission (email), the email may be sent to SDO CPA unencrypted. Unencrypted email is not a secure form of communication. You understand there may be some risks that unencrypted emails may be misdirected, disclosed to, or intercepted by unauthorized third parties.

Data Confidentiality for Financial Access

SDO CPA will treat all client financial data as confidential and will not share it with unauthorized third parties. However, we cannot be held responsible for data breaches or misuse of information caused by the client’s sharing of login credentials or failure to follow recommended security practices. Clients should not provide access to their accounts through insecure methods such as unencrypted email.

Data Security Incidents

We maintain a Written Information Security Plan (WISP) as required by the FTC Safeguards Rule under the Gramm-Leach-Bliley Act and in accordance with IRS Publication 4557 guidance for tax professionals. In the event of a security incident involving your personal information, we will notify you within seventy-two (72) hours of discovering the incident and take reasonable steps to mitigate harm, as required by applicable law including the Texas Business and Commerce Code.

For security incidents involving taxpayer data, we will also notify the IRS Stakeholder Liaison and applicable state tax agencies as required by IRS Publication 4557, generally within twenty-four (24) hours of discovering the incident. For breaches affecting 500 or more individuals, we will notify the FTC as required by the FTC Safeguards Rule. For breaches affecting 250 or more Texas residents, we will also notify the Texas Attorney General as required by Texas Business and Commerce Code §521.053(g). If the incident originates at a third-party service provider (including an AI processing provider), we will coordinate notification with that provider and notify you as required by applicable law.

Our liability for security incidents shall be subject to the Limitation of Liability provisions herein. We are not liable for security incidents arising from: (a) your failure to maintain adequate security over your own systems, credentials, or information; (b) your transmission of information via unencrypted email or other insecure methods after we have advised against such transmission; (c) third-party systems or services not under our control; or (d) your failure to promptly notify us of suspected unauthorized access to your account.

Third-Party Service Providers or Subcontractors

We may use third-party service providers, subcontractors, software tools, and artificial intelligence (AI) services (collectively, “external parties”) to assist us in providing professional services to you or supporting firm operations. You consent to our use of external parties. Our firm remains responsible for exercising reasonable care in providing our services, and our work product will be subjected to our customary quality control procedures.

We may provide your confidential information to external parties as necessary to perform our services. You consent to such disclosure. We take reasonably prudent steps, consistent with our professional standards, to prevent unauthorized release of your confidential information to those parties.

AI-Assisted Processing. We use AI-powered tools, including artificial intelligence, optical character recognition (OCR), and algorithmic analysis, to assist with tax document classification, data extraction, and workpaper preparation. These services are performed through API connections with Anthropic, PBC (provider of the Claude AI platform) and TracePrep Inc. (our affiliated tax document processing platform). AI processing operates under zero data retention policies — meaning your tax document content is not stored, logged, or used to train AI models after the processing session ends. Written data processing agreements with each of these providers are maintained on file at our firm and are available upon written request. These providers are contractually restricted from using your information for any purpose other than assisting in the preparation of your returns.

Our use of these AI tools falls within the contractor exception to IRC §7216 under Treas. Reg. §301.7216-2(d)(2). Additional details regarding our AI service providers and data handling practices are described in our Privacy Policy at sdocpa.com/privacy.

Online Tool Service Providers. Our website and pricing calculator use additional service providers for scheduling, analytics, marketing automation, and workflow routing. These include Cal.com, Inc. (appointment scheduling), PostHog, Inc. (product analytics), Customer.io, Inc. (automated email communications), and Zapier, Inc. (data routing to our client management systems). These providers receive information you submit through our online tools (such as contact information, service selections, and pricing estimates) and process it under our instructions. Additional details about these providers and the data they receive are described in our Privacy Policy at sdocpa.com/privacy and in the “Website and Online Tools” section of these Terms.

In certain circumstances, we may require a separate written consent from you before your information is transmitted to an external party. We will notify you when such consent is required.

Client Authorization

By granting SDO CPA access to your bank and credit card accounts through QuickBooks Online or other financial software, you authorize us to view and download transaction data solely for the purpose of providing bookkeeping and accounting services. This access is strictly for read-only purposes, and no funds will be transferred, managed, or otherwise manipulated by our firm unless part of the engagement, like Back-Office services.

Records Management

Record Retention and Ownership

We will return any original records and documents you provide to us. Our copies of your records and documents are solely for our documentation purposes and are not a substitute for your own record-keeping obligations under any applicable laws or regulations. You are responsible for maintaining complete and accurate books and records, which may include financial statements, schedules, tax returns and other deliverables provided to you by us. If we provide deliverables or other records to you via an information portal, you must download this information within 30 days. Professional standards may preclude us from being the sole repository of your original data, records, or information.

Workpapers and other items created by us to support the delivery of our services are our property and will remain in our control. We will consider requests for copies of workpapers and other items created by us in accordance with the AICPA Code of Professional Conduct. Our workpapers will be maintained by us in accordance with our firm’s record retention policy and any applicable legal and regulatory requirements.

Our firm destroys workpaper files after a period of 6 years. Catastrophic events or physical deterioration may result in damage to or destruction of our firm’s records, causing the records to be unavailable before the expiration of the retention period, as stated in our record retention policy.

Working Paper Access Requests by Regulators and Others

State, federal and foreign regulators may request access to or copies of certain workpapers pursuant to applicable legal or regulatory requirements. Requests also may arise with respect to peer review, an ethics investigation, the sale of your organization, or the sale of our accounting practice. If requested, access to such workpapers will only be provided under the supervision of firm personnel. Regulators may request copies of selected workpapers to distribute the copies or information contained therein to others, including other governmental agencies.

If we receive such a request, we agree to inform you of it as soon as practicable unless we are prohibited from doing so by applicable laws or regulations. You may, within the time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate, at your sole expense, to attempt to limit the disclosure of information. If you take no action within the time permitted for us to respond, or if your action does not result in a judicial order protecting us from supplying requested information, we may construe your inaction or failure as consent to comply with the request.

If we are not a party to the proceeding in which the information is sought, you agree to reimburse us for our professional time and expenses, as well as the fees and expenses of our legal counsel, incurred in responding to such requests.

Summons or Subpoenas

All information you provide to us in connection with this engagement will be maintained by us on a confidential basis.

If we receive a summons or subpoena which our legal counsel determines requires us to produce documents from this engagement or testify about this engagement, provided that we are not prohibited from doing so by applicable laws or regulations, we agree to inform you of such summons or subpoena as soon as practicable. You may, within the time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate, at your sole expense, to attempt to limit discovery. If you take no action within the time permitted for us to respond, or if your action does not result in a judicial order protecting us from supplying requested information, we may construe your inaction or failure as consent to comply with the request.

If we are not a party to the proceeding in which the information is sought, you agree to reimburse us for our professional time and expenses, as well as the fees and expenses of our legal counsel, incurred in responding to such requests.

Confidentiality

In providing services to you, we may require information that is considered confidential and may include Personally Identifiable Information (PII), i.e. information that can be used to distinguish or trace an individual’s identity such as address, bank account and social security information. We will maintain all client information, including PII, on a confidential basis and have a duty to do so based on the standards promulgated by the American Institute of Certified Public Accountants as well as applicable laws and regulations. You assume the risk of loss if you provide us with information, including PII, which differs from the information we request in order to provide services to you in accordance with the Agreement.

Our confidentiality obligations under this Agreement survive termination of this Agreement. However, we may retain copies of your information as required by professional standards, legal requirements, or for our protection in any dispute, and such retained information remains subject to our confidentiality obligations.

Referrals

In the course of providing services to you, you may request referrals to products or professionals such as attorneys, brokers, or investment advisors. As a courtesy, we may identify professional(s) or product(s) for your consideration. However, you are responsible for evaluating, selecting, and retaining any professional or product and determining if the professional or product meets your needs. You agree that we will not oversee the activities of and have no responsibility for the work product of any professional or suitability of any product we refer to you or that you separately retain.

Limitations on Oral and Email Communications

We may discuss with you our views regarding the treatment of certain items or decisions you may encounter. We may also provide you with information in an email. Any advice or information delivered orally or in an email (rather than through a memorandum delivered as an email attachment) will be based upon limited research and a limited discussion and analysis of the underlying facts. Additional research or a more complete review of the facts may affect our analysis and conclusions.

Due to these limitations and the related risks, it may not be appropriate to proceed with a decision solely on the basis of any oral or email communication from us. You accept all responsibility for any liability, including but not limited to additional tax, penalties or interest resulting from your decision (i) not to have us perform the research and analysis necessary to reach a more definitive conclusion and (ii) to instead rely on an oral or email communication. The limitation in this paragraph will not apply to an item of written advice that is a deliverable of a separate engagement. If you wish to engage us to provide formal advice on a matter on which we have communicated orally or by email, we will confirm this service in a separate agreement.

Brokerage, Investment Advisory or Digital Asset Statements

If you provide our firm with copies of brokerage, investment advisor, or digital asset statements, we will use the information solely for the purpose described in the Engagement Objective and Scope section of this Agreement. We will not monitor transactions, investment activity, provide investment advice, or supervise the actions of the entity or individuals entering into transactions or investment activities on your behalf.

Disclaimer of Legal and Investment Advice

Our services under this Agreement do not constitute investment advice unless specifically engaged in the Engagement Objective and Scope section of this Agreement. Our services under this Agreement do not constitute legal advice.

Electronic Data Communication and Storage

In the interest of facilitating our services to you, we may send data over the Internet, temporarily store electronic data via computer software applications hosted remotely on the Internet, or utilize cloud-based storage. Your confidential electronic data may be transmitted or stored using these methods. In using these data communication and storage methods, our firm employs measures designed to maintain data security. We use reasonable efforts to keep such communications and electronic data secure in accordance with our obligations under applicable laws, regulations, and professional standards.

You recognize and accept that we have no control over the unauthorized interception or breach of any communications or electronic data once it has been transmitted or if it has been subject to unauthorized access while stored, notwithstanding all reasonable security measures employed by us. You consent to our use of these electronic devices and applications during this engagement.

Marketing and Educational Communications

If we send you newsletters, updates, explanations of technical developments or similar communications, it is strictly for marketing or general educational purposes and should not be construed as professional advice on which you may rely. These communications, by themselves, do not create a contractual relationship between us and you, a binding obligation for us to provide services to you, nor a requirement on our part to monitor issues for you.

Federally Authorized Practitioner – Client Privilege

Internal Revenue Code §7525, Confidentiality Privileges Related to Taxpayer Communication, provides a limited confidentiality privilege applying to tax advice in taxpayer communications with federally authorized tax practitioners in certain limited situations.

While we will cooperate with you with respect to the privilege, asserting the privilege is your responsibility.

Mediation

If a timely dispute arises out of or relates to this Agreement, including the scope of services contained herein, or the breach thereof, and if the dispute cannot be settled through negotiation, the parties agree first to try to settle the dispute by mediation administered by the American Arbitration Association (“AAA”) under the AAA Accounting and Related Services Arbitration Rules and Mediation Procedures before resorting to arbitration, litigation, or any other dispute resolution procedure. The mediator will be selected by mutual agreement of the parties. If the parties cannot agree on a mediator, a mediator shall be designated by the AAA. The mediation will be conducted in Texas.

The mediation will be treated as a settlement discussion and, therefore, all discussions during the mediation will be confidential. The mediator may not testify for either party in any later proceeding related to the dispute. No recording or transcript shall be made of the mediation proceedings. The costs of any mediation proceedings shall be shared equally by all parties. Any costs of legal representation shall be borne by the hiring party.

This provision shall not apply to any dispute of fees owed, billed or due.

Professional Liability Insurance

SDO CPA LLC maintains professional liability insurance (errors and omissions coverage) in amounts we believe are appropriate for our practice. Information regarding our coverage is available upon written request.

Limitation of Liability

SDO CPA LLC’S AND SDO CPA LLC’S OWNERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR ASSIGNS (COLLECTIVELY “SDO CPA LLC STAKEHOLDERS”) LIABILITY FOR ALL CLAIMS, DAMAGES AND COSTS ARISING FROM NEGLIGENT ACTS, ERRORS, OR OMISSIONS COMMITTED BY US IN THE PERFORMANCE OF THIS ENGAGEMENT IS LIMITED TO TWO (2) TIMES THE TOTAL AMOUNT OF FEES PAID BY YOU TO SDO CPA LLC FOR THE SPECIFIC SERVICE GIVING RISE TO THE LIABILITY.

IN NO EVENT SHALL OUR AGGREGATE LIABILITY FOR ALL CLAIMS ARISING FROM ALL SERVICES PROVIDED TO YOU UNDER THIS AGREEMENT OR ANY RELATED AGREEMENTS EXCEED TWO (2) TIMES THE TOTAL FEES PAID TO US IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

IF THERE ARE NO FEES CHARGED TO YOU BY SDO CPA LLC, SDO CPA LLC’S LIABILITY FOR ALL CLAIMS, DAMAGES, AND COSTS ARISING FROM THIS ENGAGEMENT IS LIMITED TO $0.

Limitation of Damages

NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, SDO CPA LLC AND SDO CPA LLC STAKEHOLDERS SHALL NOT BE LIABLE FOR ANY LOST PROFITS, INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, CONSEQUENTIAL, OR SIMILAR DAMAGES, TO THE EXTENT SUCH DAMAGES MAY BE LAWFULLY LIMITED OR EXCLUDED, OF ANY NATURE EVEN IF WE HAVE BEEN ADVISED BY YOU OF THE POSSIBILITY OF SUCH DAMAGES.

Comparative Fault

Any liability we may have under this Agreement shall be reduced by the percentage of fault, if any, attributable to you, your employees, agents, representatives, or third parties not under our control. This includes, without limitation, fault arising from the provision of inaccurate, incomplete, or untimely information; failure to follow our advice or recommendations; and actions or omissions by other advisors you have engaged.

Indemnification of SDO CPA LLC

The following is applicable to audit and attest engagements only:

You agree to hold us harmless from any and all claims which arise from knowing misrepresentations to us, or the intentional withholding or concealment of information from us by your management. You also agree to indemnify us for any claims made against us by third parties, which arise from any of these actions by your management. The provisions of this paragraph shall apply regardless of the nature of the claim.

The following applies to non-attest engagements only:

You agree to indemnify, defend, and hold harmless SDO CPA LLC and any SDO CPA LLC Stakeholders with respect to any and all claims made by third parties arising from this engagement, regardless of the nature of the claim, and including the negligence of any party, excepting claims found to have arisen from the gross negligence or intentional acts of SDO CPA LLC.

No Assignment of Claims

You may not assign any claims, rights, or causes of action against SDO CPA LLC or any SDO CPA LLC Stakeholders to any third party without our prior written consent. Any purported assignment in violation of this provision is void and of no effect.

Designation of Venue and Jurisdiction

In the event of a dispute, the courts of the state of Texas shall have exclusive jurisdiction, and all disputes will be submitted to the District Courts of Dallas County, Texas. We also agree that the law of the state of Texas, except for laws governing the choice of law, shall govern all such disputes.

Timing for Disputes

You agree that any claim arising out of this Agreement shall be commenced within one (1) year from the date our services conclude as outlined in the Timing of the Engagement section of the Agreement, regardless of any longer period of time for commencing such claim as may be set by law. If such one (1) year limitation period is found unenforceable under applicable law, you agree that any claim shall be commenced within the shortest period permitted by applicable law. A claim is understood to be a demand for money or services, the service of a suit, or the institution of arbitration proceedings against SDO CPA LLC.

Independent Contractor

When providing services to your company, we will function as an independent contractor and in no event will we or any of our employees be an officer of you, nor will our relationship be that of joint venturers, partners, employer and employee, principal and agent, or any similar relationship giving rise to a fiduciary duty to you.

Our obligations under this Agreement are solely obligations of SDO CPA LLC, and no SDO CPA LLC Stakeholder shall be subjected to any personal liability whatsoever to you or any person or entity.

Severability

If any portion of this Agreement is deemed invalid or unenforceable, said finding shall not operate to invalidate the remainder of the terms set forth in this Agreement.

Survivability

The following sections of this Terms and Conditions Addendum shall survive termination of the Agreement: Limitation of Liability, Limitation of Damages, Comparative Fault, Indemnification, No Assignment of Claims, Timing for Disputes, Confidentiality, and No Continuing Duty.

Assignment, No Third Party Beneficiaries

All parties acknowledge and agree that the obligations and responsibilities of this Agreement cannot be assigned to any third party except as agreed to in writing. This Agreement has been entered into solely between you and SDO CPA LLC, and no third-party beneficiaries are created hereby.

Force Majeure

Neither party shall be held liable for any delays resulting from circumstances or causes beyond our reasonable control, including, without limitation, fire or other casualty, act of God, strike or labor dispute, war or other violence, epidemics or pandemics as defined by The Centers for Disease Control and Prevention, or any law, order or requirement of any governmental agency or authority. However, no Force Majeure event shall excuse you of any obligation to pay any outstanding invoice or fee or from any indemnification obligation under this Agreement.

Document Retention Policy

Our firm operates as a paperless office. All documents are maintained in electronic format on secure systems. We do not provide long-term storage of your source documents.

Physical Documents You Provide: Any physical documents you provide (W-2s, 1099s, bank statements, etc.) will be scanned and the originals securely shredded within thirty (30) days of receipt. If you require return of original documents, you must request this in writing at the time you provide them. Per Texas State Board of Public Accountancy Rule 501.76, we will return requested originals within ten (10) business days at no charge.

Digital Uploads: Documents you upload to our portal (source documents, statements, receipts, etc.) may be deleted from our systems within ninety (90) days after your tax return is filed and accepted. You are responsible for retaining your own copies of all source documents. The IRS recommends taxpayers retain records for at least three (3) years, and in some cases up to seven (7) years or longer.

What We Retain: Consistent with IRS requirements under 26 CFR § 1.6107-1 and AICPA guidance, we retain only: (1) a copy of your filed tax return; (2) e-file authorization forms; and (3) our work papers. These records are retained for seven (7) years from the filing date, after which they may be securely destroyed without notice.

Client Portal Access: A copy of your filed tax return is available through your client portal. You are responsible for downloading and retaining this copy for your records.

Work Papers: Work papers developed by our firm during this engagement are and remain the property of SDO CPA LLC per Texas State Board of Public Accountancy Rule 501.76(b). Work papers that constitute client records (such as adjusting journal entries incorporated into your return) will be provided upon written request.

Electronic Signatures and Counterparts

Each party hereto agrees that any electronic signature intended to replicate a written signature, shall be presumed valid, and we may reasonably rely upon it. For purposes hereof, “electronic signature” includes, but is not limited to, a scanned copy of a manual signature, an electronic copy of a manual signature affixed to a document, a signature incorporated into a document utilizing touchscreen capabilities, or a digital signature. Documents may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement.

Entire Agreement

This Agreement, including this Terms and Conditions Addendum, represents the entire agreement of the parties and supersedes all previous oral, written or other understandings and agreements between the parties.

Language

This Agreement is executed in English, which shall be the controlling language for all purposes. You represent that you have sufficient command of English to understand this Agreement, or that you have consulted with a translator or advisor of your choosing before signing. No translation of this Agreement shall affect its interpretation.

Modification of Terms

We reserve the right to modify these Terms at any time by posting the updated version at sdocpa.com/terms. Changes are effective upon posting. The version of the Terms in effect at the time you sign an engagement letter will govern that engagement. We encourage you to review the Terms periodically.