Standard Terms & Conditions

1. Accounting Services 

Accounting services are not automatically included in all engagements.  If this engagement includes accounting services, we will perform all accounting functions or tasks as outlined in the selected pricing package.

Client agrees to make online access available to us of all business bank, payroll, and credit card accounts (if applicable) and other third-party transaction systems/reports as well as any other necessary documentation, if applicable, as required to perform accounting tasks.

This engagement does not include business management.  The work performed will be done on an as-needed basis, which limits our involvement and knowledge of the daily operations of Client’s business.  We will not review the payment of any invoices or bills beyond the normal authorization stamp produced by your office. If an amount appears unusual or out of the ordinary, we will call it to your attention, but we do not take any responsibility in the discovery of any errors, irregularities, or illegal acts, including fraud or defalcation.  By their signature below, Client acknowledges these facts and understands that the accounting records are solely Client’s responsibility.

Unless otherwise stated in this engagement letter or any related addendums, our accounting services are not designed to identify and cannot be relied upon to disclose compliance issues with Federal, state or local laws or regulations which may pertain to the business, including but not limited to sales tax, use tax, excise tax, employment tax, informational reporting (e.g., Forms 1099), human resources, labor, document retention, or any other compliance or legal matter. However, we will inform you of any compliance issues that we become aware of during our engagement.

Our engagement cannot be relied upon to disclose errors, fraud, or illegal acts. However, we will inform you of any material errors and of any evidence or information that comes to our attention during the performance of our accounting services that fraud may have occurred.  In addition, we will report to you any evidence or information that comes to our attention during the performance of our accounting services regarding illegal acts that may have occurred, unless they are clearly inconsequential. The MB Group has no responsibility to identify and communicate deficiencies or material weaknesses in your internal control as part of this engagement.

Client is responsible for making all management decisions and performing all management functions, and for designating an individual who possesses suitable skill, knowledge, or experience to oversee any bookkeeping services, tax results, or other services The MB Group provides. In addition, Client is responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services.

The MB Group will print interim and annual financial reports from Client’s accounting system and deliver the reports at a frequency established with Management.  In accordance with Statements on Standards for Accounting and Review Services (SSARS) 21 along with technical guidance and interpretation provided by the American Institute of Certified Public Accountants, our generation of interim and annual reports printed from your accounting system as a byproduct of accounting services does not constitute the preparation of financial statements nor has Management requested a financial statement preparation service.

PLEASE NOTE: If this engagement does not include accounting services and Client wishes for them to be provided, The MB Group requires an additional fee and engagement for these services before work will begin.

2. Individual Tax Compliance Services

Individual tax compliance services are not automatically included in all engagements.  If this engagement includes individual tax compliance services, The MB Group will prepare your annual US Individual Tax Return, Form 1040, and related schedules, along with any required State returns you disclose to us. We will prepare the returns from financial information that you supply and represent to be complete and accurate.  If we do not receive all information necessary to file a complete and accurate return by the due date, we will automatically file an extension request on your behalf. The statutory deadline for filing your Individual tax return is April 15; therefore, we request you send your tax information before March 15.

Upon receipt of current year tax documents, we will provide you with a list of any additional documents or information needed to prepare the tax returns. We will not audit or independently verify the data you submit. However, we may ask for clarification of the information.

PLEASE NOTE: It is Client’s obligation to notify The MB Group if assistance is needed to determine whether you are liable for state income tax or if you have a filing requirement in states where you have not previously filed a return.

If this engagement does not include individual tax compliance services and Client wishes for them to be provided, The MB Group requires an additional fee and engagement for these services before work will begin.

3. Business Tax Compliance Services

Business tax compliance services are not automatically included in all engagements. If this engagement includes business tax compliance services, The MB Group will prepare the applicable US entity Income Tax Return and related schedules, along with any required State returns you disclose to us.  We will prepare the returns from financial information and reports that you supply and represent to be complete and accurate.  If we do not receive all information necessary to file a complete and accurate return by the due date, we will automatically file an extension request on your behalf. The statutory deadline for filing your tax return is either March 15 or April 15 each year; therefore, we request you send any missing or requested tax information by either February 15 or March 15 depending upon the statutory deadline mentioned above.

We will provide you with a list of the information we will require in order to prepare the tax returns. We will not audit or independently verify the data you submit. However, we may ask for clarification of the information.

PLEASE NOTE: It is your obligation to notify The MB Group if assistance is needed to determine whether you are liable for state income tax or if you have a filing requirement in states where you have not previously filed a return.

If this engagement does not include business tax compliance services and Client wishes for them to be provided, The MB Group requires an additional fee and engagement for these services before work will begin.

4. Trust Tax Compliance Services

Trust tax compliance services are not automatically included in all engagements. If this engagement includes trust tax compliance services, The MB Group will prepare your annual US Trust Income Tax Return, Form 1041, and related schedules, along with any required State returns you disclose to us. We will prepare the returns from financial information that you supply and represent to be complete and accurate.  If we do not receive all information necessary to file a complete and accurate return by the due date, we will automatically file an extension request on your behalf. The statutory deadline for filing your Trust tax return is April 15; therefore, we request you send your tax information before March 15.

Upon receipt of current year tax documents, we will provide you with a list of any additional documents or information needed to prepare the tax returns. We will not audit or independently verify the data you submit. However, we may ask for clarification of the information.

PLEASE NOTE: It is your obligation to notify The MB Group if assistance is needed to determine whether you are liable for state income tax or if you have a filing requirement in states where you have not previously filed a return.

If this engagement does not include trust tax compliance services and Client wishes for them to be provided, The MB Group requires an additional fee and engagement for these services before work will begin.

5. Exempt Organization Tax Compliance Services

Exempt organization tax compliance services are not automatically included in all engagements. If this engagement includes exempt organization tax compliance services, The MB Group will prepare your annual Return of Organization Exempt from Income Tax, Form 990, and related schedules, along with any required State returns you disclose to us. We will prepare the returns from information you submit. If we do not receive all information necessary to file a complete and accurate return by the due date, we will automatically file an extension request on your behalf. The statutory deadline for filing your Not for Profit tax return is May 15; therefore, we request you send your tax information before April 1.

Upon receipt of current year tax documents, we will provide you with a list of any additional documents or information needed to prepare the tax returns. We will not audit or independently verify the data you submit. However, we may ask for clarification of the information.

PLEASE NOTE: It is your obligation to notify The MB Group if assistance is needed to determine whether you are liable for state income tax or if you have a filing requirement in states where you have not previously filed a return.

If this engagement does not include exempt organization tax compliance services and Client wishes for them to be provided, The MB Group requires there to be an additional fee and engagement for these services before work will begin.

6. Tax Planning Services

Tax planning services are not automatically included in all engagements.  If this engagement includes tax planning services, The MB Group will assist with tax planning on a semi-annual or annual basis, depending upon the frequency chosen. We will provide potential tax planning strategies and associated income tax projections. Our goal is to help identify opportunities that may be available to minimize all applicable taxes. You are free to follow or to disregard, in whole or in part, any tax planning strategies and recommendations we may make. It is our policy to put all advice and recommendations upon which a client intends to rely in writing. We believe this is necessary to avoid any confusion and make clear the specific nature of our advice. You should not rely on any unwritten advice from our firm. In performing our services, we require your cooperation in providing various types of information and documents concerning your personal financial and tax situation. The appropriateness of our recommendations depends on the reliability of the information you provide to us. We will not audit or otherwise verify the data submitted by you that is used in our calculations and planning; however, we may ask for additional clarification of some information.

The tax planning, projections and advice we offer reflect our professional judgment based on the facts you provide us and the tax law currently stipulated. Subsequent developments changing the facts you have provided to us, or differences in the final regulations once they are issued by the applicable tax authorities, may affect the advice previously provided. These effects may be material.

We are not attorneys, nor are we registered investment advisors; therefore, we will not give any legal or investment advice as part of this engagement. At your written request, we will participate in discussions with any professional advisors of your choosing (e.g., attorney, investment broker, etc.) regarding tax planning advice or recommendations.

You are responsible for, and shall make, all decisions in connection with the tax planning services provided under this agreement. This responsibility includes making the final decision regarding implementation of a tax planning strategy and/or recommendation. Further, you acknowledge that you recognize the inherent limitations of this portion of this engagement and that there may be subsequent developments changing the facts you have provided to us.

PLEASE NOTE: Verbal or written advice provided by The MB Group to Client is for the information and use of Client only and may not be shared with any third party without the express written permission of The MB Group.

If this engagement does not include tax planning services and Client wishes for them to be provided, The MB Group requires an additional fee and engagement for these services before work will begin.

7. Consulting and Advisory Services

Consulting and advisory services are not automatically included in all engagements. If this engagement includes consulting and advisory services, our engagement letter will cover those matters for which you seek our advice and consultation, both written and oral.

Consulting and advisory services may include the calculation of estimated quarterly tax payments or taxable income, retirement planning, remittance of taxes due, handling of IRS or State tax notices, written or phone correspondence with regulatory authorities and other activities of a similar nature.

Further, our consulting and advisory services may entail providing general business recommendations, guidance or introductions to resources that may be of benefit.  We may assist, as desired, with the completion of a Circle of Key Advisors worksheet and lead annual strategic planning sessions to aid in the establishment of your financial vision.

PLEASE NOTE: Verbal or written advice provided by The MB Group to Client is for the information and use of Client only and may not be shared with any third party without the express written permission of The MB Group.

If this engagement does not include consulting services and Client wishes for them to be provided, The MB Group requires an additional fee and engagement for these services before work will begin.

8. Audit Representation Services

Audit representation is not automatically included in all engagements.  If this engagement includes audit representation services, The MB Group will provide audit representation before the IRS or other taxing authorities should the returns prepared by us on your behalf be selected for examination.  We will exercise our professional judgment to resolve questions or issues that may arise where the tax law is unclear or where there may be conflicts between the taxing authorities’ interpretations of the law and other supportable positions, including providing of supporting documents or research conducted at the time of examination or original preparation of the return.  Ultimately, Client is responsible as the taxpayer for any taxes due along with any penalties and interest.  If the penalties and interest incurred were as a result of The MB Group’s negligence or error, then The MB Group will bear the financial responsibility for the penalties and interest incurred. Note that if information was not made available to The MB Group by Client and that resulted in the error, The MB Group will not have any financial liability.

Further, if the examination moves beyond a normal audit status and requires appeals or any further litigation, The MB Group’s representation will cease and Client will be required to retain a tax attorney for which Client will be responsible for all fees and related litigation costs.

PLEASE NOTE: If this engagement does not include audit representation services and Client wishes for them to be provided, The MB Group requires there to be an additional fee and engagement for these services before work will begin.

9. IRS Account Monitoring

IRS account monitoring services are not automatically included in all engagements.  If this engagement includes IRS account monitoring, The MB Group will reach out to you to complete the onboarding process. We will provide the following monitoring services:

Initial Set-up & Evaluation

  • Obtain Power of Attorney forms and submit to IRS to gain authorization to monitor account
  • Identify potential first-time penalty abatement opportunities
  • Examine for outstanding balances and return compliance (income, civil penalty, employment, etc.)
  • Identify pending collections actions by IRS
  • Examine account transcript for possible reporting deficiencies (post income verification)
  • Examine current and previous three years of taxes for refund opportunities

Quarterly Monitoring (Q1, Q2, Q3)

  • Examine for any account changes, notices, flags, liens or levies
  • Track estimates, extension, annual and quarterly estimated tax payments (if applicable)
  • Provide email communicating any issues/status

Annual Monitoring

  • Examine for any account changes, notices, flags, liens or levies
  • Track estimated extension, annual, and quarterly estimated tax payments (if applicable)
  • Provide email communicating any issue/status
  • Provide comprehensive annual Tax Analysis Report

10. Tax Document Submission Deadlines: SUMMARY – PLEASE READ AND SIGN

Tax returns are prepared on a first-come, first-served basis unless otherwise specified.  All documentation must be received for The MB Group to prepare your return(s) by the original statutory filing deadline.

We always strive to file Forms 1065 and 1120S by the original due date.  However, if we do not receive ALL accounting data and related tax information for Forms 1065 and 1120S,  by February 15, 2024, we cannot guarantee they will be filed by March 15, 2024

We always strive to file Forms 1040, 1041 and 1120 by the original due date.  However, if we do not receive ALL accounting data and related tax information for Forms 1040, 1041 and 1120 by March 15, 2024, we cannot guarantee they will be filed by April 15, 2024

We always strive to file Forms 990 by the original due date.  However, if we do not receive ALL accounting data and related tax information for Forms 990 by April 1, 2024, we cannot guarantee they will be filed by May 15, 2024.

We look forward to working with you as efficiently and effectively as possible. Please remember that if you ask us to provide unduly expedited accounting services, you may not receive as much (or as precisely targeted) advice as you actually need. Similarly, please be careful not to seek general advice from us for specific matters or circumstances of which we have not been fully informed.

We will rely on you to provide us with full, timely disclosure of all material information. We will not ordinarily verify or double-check what you tell us or the documents that you give us. Instead, we must and will assume that you have provided us everything pertinent to our representation, and that you have done so accurately and completely.

Proposal – Client signature:

11. Information Requests

The MB Group will send Client multiple emails regarding when information must be received in order to prepare your return by the original (non-extended) applicable statutory due date.  Please be aware that failure to provide information by our request deadline may result in preparation delays and the extension of your return(s).

We strive to prepare your return(s) within two to three weeks; however, timeframes for completion may be longer due to complexity or surrounding significant statutory deadlines.

For business return engagements that do not include Accounting Services, Client or Client’s management will need to provide the following information:

  • Balance Sheet as of 12/31
  • Profit & Loss for period 1/1 – 12/31
  • Trial Balance for period 1/1 – 12/31 – in EXCEL
  • General Ledger Detail for period 1/1 – 12/31 – in EXCEL
  • Issued Forms 1099
  • Issued Forms W-3 and W-2
  • Organizational/Formation Documents (for new entities or those with current year amendments)

PLEASE NOTE: The MB Group does NOT accept QuickBooks or other accounting system files for those clients where we are strictly engaged to provide tax services.

12. Electronic Documents/Scanning 

Please use our complimentary portal to upload electronic documents securely and effectively.  As a result of recent professional liability insurance changes, we are unable to store your original documents in our office once your tax return has been filed. Accordingly, all documents must be converted to an electronic format and returned to you promptly.

13. Power of Attorney

Due to ongoing issues at the IRS, we are now requiring clients to provide us with a signed Power of Attorney (Form 2848) so that we are properly authorized to contact the IRS on your behalf should you receive a notice. The Power of Attorney can be revoked by you or a successor accountant at any time.

14. Engagement Fees

Our fees are determined by the nature and complexity of the work within the scope of the agreement and the skillset required of team members who will be performing the services.

The initial term of this agreement is for a twelve (12) month period.  If Client has elected monthly payments, the payments will continue after the twelve (12) month period.  Additionally, Client will be required to sign a new engagement letter to confirm the services provided.  Additionally, fees may be adjusted when the agreement renews or whenever events or circumstances arise that significantly affect the volume and/or complexity of the requested services.  Client will be notified in advance of any pricing changes.

The payment process for all monthly fees will be initiated on the last day of each month using the payment method supplied for the engagement.  The withdrawal or charge date varies depending on the banking or credit card institution.

The MB Group may submit additional invoices for pre-approved out-of-pocket expenses, filing fees and taxes that you have requested us to pay on your behalf.  Our policy is to render bills and receive payment in advance before work commences.

In the event of unanticipated extra work as it pertains to tax preparation, planning and consultation, especially in situations where tax law changes or significant transactions occurred and which necessitate additional reporting to ensure compliance, an additional engagement may be required for signature/agreement.

Engagements may be terminated by either party on thirty (30) days written notice to the other party. The thirty (30) days termination notice may be given at any point during the contract and for any reason.  The monthly fee will be due and payable for the next month following the thirty (30) day written notice, and we do not offer any prorations of fees if notification of termination occurs before month end.  

Agreement terminations prior to tax return preparation will result in cessation of further billing (subsequent to the thirty (30) day written notice), and no refund will be offered for unused services.  If the agreement is terminated following tax return preparation, the payment method provided for the engagement will be automatically charged the remaining amount due.

If return revisions are requested after a draft is provided and the request(s) is (are) resultant from Client’s failure to provide all requested information at the time of original return preparation, additional fees will be assessed based upon the time and effort required to revise and reprocess the return.  Client will be required to remit the extra payment prior to return filing.

15. Fees – Scanning

The first 50 pages of scanning will be billed at a standard minimum fee of $50.00.  Additional requested scanning will be determined at the time of drop-off.  You will be required to remit payment at the time of document drop-off for scanning fees. You will also be required to pay $25 for postage required to return your original documents, or you may arrange to pick them up at our offices.

16. Fees – Other Services

Any additional tax or accounting services requested will be quoted on a fixed fee basis in a separate work order and payment will be required prior to work commencement.  Note that payment must be received for work to begin on any projects outside the scope of tax return preparation.

17. Extensions

The MB Group reserves the right to extend your Federal and any applicable State return(s), and it should be noted that S Corporation and Partnership returns and related State returns will be automatically extended.

If your intention is to extend your C Corporation return(s) or you are aware that all necessary data will not be ready by our requested deadline, please provide any estimates or all available information on or before February 15, 2024 to allow us to calculate estimated taxable income so that an extension payment may be made on your corporate return(s).  If we do not receive the information or you have not contacted us by February 15, 2024, we will assume that you will be extending with zero payment due or that you do not need our assistance with this estimate.

If your intention is to extend your Individual Form 1040 return(s) or you are aware that all necessary data will not be ready by our requested deadline, please provide any estimates or all available information on or before March 15, 2024 to allow us to calculate an extension payment. If we do not receive the information or you have not contacted us by March 15, 2024, we will assume that you will be extending with zero payment due or that you do not need our assistance with this estimate.

PLEASE NOTE: The MB Group will not stop working on tax return preparation in March or April to prepare extension payment estimates where information was received past our March 15, 2024 deadline.  We are not liable for any penalties or interest that may be incurred as a result of noncompliance with our policies. 

We encourage you to reach out to us throughout the year (not just at return preparation time) if you experience any unusual or significant changes in your income, investments or business. 

18. Expedite Penalties

We send reminders on a routine basis throughout the year to obtain information to prepare your extended return(s) so that we have ample time to properly prepare and review your specific tax situation.

If within thirty (30) days of the extended due date, we do not receive most of the necessary information to prepare your extended return(s), we cannot guarantee the return(s) will be filed by the extended applicable statutory deadline.

Should you wish for us to expedite the preparation of your return to comply with the deadline and enough time permits for us to complete the return at the time the information is received, an additional $750 – $2,500 fee will be assessed depending upon when the data is received. Expedite fees will not be assessed to clients who are waiting on only Forms K-1 to finalize their returns.

If you are waiting on tax information so that we can begin preparation, please submit all other tax information immediately upon receipt and contact us regarding the missing information.

19. Terms and Conditions

This engagement cannot be relied on to uncover errors in the underlying information incorporated in the tax return, or irregularities, should any exist.  However, we will inform you of any such matters that come to our attention. Because you have ultimate responsibility for the tax returns, please carefully review the return before signing and/or filing the return.

All returns are subject to examination by the taxing authorities.  In the event of an examination, Client may be requested to produce documents, records, or other evidence to substantiate the items of income and deduction shown on the tax returns.  In preparing the returns, The MB Group relies on Client’s representations that you understand and have complied with applicable documentation requirements for expenses, deductions, and credits.  If an examination occurs, we will be available, upon request, to assist or represent you.  Such additional services are not included in our fee for preparation of the returns specified in this letter.

We may from time to time, and depending on the circumstances, use certain third-party service providers to assist us in serving your account. Third-party service providers include individuals who are not employed by our firm. We may share your confidential information with the service providers who will assist us but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers.  We may receive remuneration from certain third-party service providers who, at our referral, provide products or services essential to the implementation of the accounting services or tax planning strategies approved by you.

Client understands that The MB Group makes no representation, warranty, or promise, and offers no opinion with respect to the applicability of such confidentiality privilege to any communication and agrees to hold The MB Group harmless should the privilege be determined not to apply to particular communications.  Client agrees to indemnify The MB Group for any attorney’s fees and other costs and expenses incurred by The MB Group in defending the confidential privilege on Client’s behalf.

In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and will not be resumed until your account is paid in full and a retainer for the estimated monthly fees is paid in advance of further work being performed.  If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination.  You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination.  If your account becomes more than 90 days past due, your account will be turned over to an outside collection agent.  We will provide the collection agent with all pertinent client information in order to collect on outstanding account balances over 90 days past due.  You will be responsible for the cost of such collection agent not to exceed applicable statutes of the laws in the State of Texas.

If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes, before resorting to litigation. The costs of any mediation proceeding shall be shared equally by all parties.

Client and The MB Group both agree that any dispute over fees charged by The MB Group to Client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final. IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT, IN THE EVENT OF A DISPUTE OVER FEES CHARGED BY THE MB GROUP, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.

Client agrees that The MB Group’s maximum liability to Client arising for any reason relating to services rendered under this engagement shall be limited to the fees paid for these services.  In the event of a claim by a third party relating to services under this engagement, Client will indemnify The MB Group and its personnel from all such claims, liabilities, costs and expenses, except to the extent determined to have resulted from the intentional or deliberate misconduct of The MB Group personnel.

It is understood that The MB Group is not an employee, agent or partner of Client, but is an independent contractor providing services to other clients in addition to Client. The MB Group shall have full control on the manner, location and method of providing services to Client, subject only to the requirements of Client for timely reporting and for State or Federal authorities for timely tax filing.

Client acknowledges and understands that The MB Group may assign its employees or contract labor to Client to perform the specific services outlined above.  Client agrees it shall not hire, attempt to hire, or otherwise persuade The MB Group employees or contract labor to work for Client or any organization related to Client.  In the event any employee or contract laborer of The MB Group becomes employed by Client as an employee or contract laborer, doing essentially the same work for Client as was performed by The MB Group, Client shall pay to The MB Group thirty (30) percent of the employee’s annualized wages/fees and other compensation, but in no event less than thirty (30) percent of The MB Group annualized fees.

This written agreement constitutes the full agreement between the parties, and no promises or conditions other than those set forth herein are binding.  This agreement may be modified only by writing signed by both parties hereto. This contract shall be governed and interpreted by the laws of the State of Texas.

We appreciate the opportunity to be of service to Client and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.

 

Very truly yours,

THE MB GROUP, LLC