CONTRACT FOR THE LIMITED SERVICE OF THE
PREPARATION OF INCOME TAX RETURNS
(Print out and fax to Skane Tax Solutions LLC at 619.275.7531)

This contract is between, Skane Tax Solutions LLC, and you, the client. The parties to this contract shall be referred to as CPA and YOU. By signing this contract CPA and YOU are agreeing to the following conditions and limitations. Please read this contract carefully before signing.

The professional services YOU are contracting the CPA to do is LIMITED to the preparation of the income tax returns identified at the bottom of this contract. This preparation is a limited service and does not involve other services CPA may perform for other clients or on other jobs.

If a problem develops, we should talk first. If we can not resolve the problem we agree to go to arbitration or mediation before we sue. We agree that we will be responsible individually for our own legal expenses.

YOU are requesting that your income tax returns be prepared in a manner that is legal and saves you tax dollars. YOU agree that YOU have support for the information YOU supply to CPA and YOU agree that any estimates we use are reasonable to the best of your beliefs. YOU are responsible to review the returns prior to signing the returns. By signing the returns YOU agree to the deductions taken and the tax treatment of your transactions as reported in the returns.

YOU understand that the federal and state income tax laws are extremely complex. YOU and CPA will determine which deductions to take and how to record your transactions on the tax return. There must be reasonable support for all of our positions.

The finding of REASONABLE SUPPORT is different from that of SUBSTANTIAL AUTHORITY, which is the higher standard. Examples of SUBSTANTIAL AUTHORITY are the IRS regulations, revenue rulings, and court cases. The cost of determining if substantial authority exists can be considerable and is best done by a tax attorney. This service is not covered by this contract and is specifically excluded from this contract.

The Internal Revenue Service (or their state counterpart the collectively referred to as IRS) can disagree with deductions taken and how we have recorded your transactions. The IRS can and does charge penalties and interest when they audit and adjust the taxpayers tax returns. The penalties the IRS charge are greater when substantial authority for the deduction or treatment does not exist. The penalties can be charged against YOU and CPA. Interest can only be charged by the IRS against YOU.

The IRS determines whom they will charge and which penalties apply. YOU agree that YOU will be responsible for any additional taxes, penalties, and interest the IRS imposes on YOU. YOU agree that you will not seek reimbursement from CPA for these additional taxes, penalties, or interest charged to YOU. CPA agrees that CPA will be responsible for any penalties or other charges the IRS imposes on CPA. CPA agrees that CPA will not seek reimbursement from YOU for these penalties or other charges IRS imposes on CPA.

Any potential audit adjustments can be minimized by proper tax planning. If a transaction is planned in advance, research performed on the appropriate tax laws and proper documentation is used, then YOU have a better chance of avoiding or minimizing adjustments. The IRS has a procedure to obtain a letter ruling prior to the transaction taking place; this also helps avoid adjustments. Tax planning, tax research, proper documentation, and letter rulings cost money. CPA can do some of this and a tax attorney can do some of this. These services are not covered by this contract and are specifically excluded from this contract.

YOU might ask CPA by telephone certain questions concerning tax matters and decisions that YOU are considering. If CPA answers these questions, the answer would be based on general circumstances and not appropriate to all cases. YOU agree not to rely on CPA's telephonic answer to make material decision which might have adverse financial or tax effects. CPA's answers are general in nature and are neither to be relied upon for your specific situation nor your specific tax position nor on SUBSTANTIAL AUTHORITY. Neither the task of determining specific answers related to your specific situation nor its cost are covered by this contract and is specifically excluded from this contract.

If YOU want advice that you can rely on and have confidence in, then YOU should talk with CPA in person and bring in questions in written form and all pertinent papers and support material so that CPA can review your questions along with the pertinent papers, support material, and your individual income tax records. YOU should also bring in a check to pay CPA for the professional services of answering your questions. This is a separate service and is specifically excluded from this contract.

If YOU choose not to meet with CPA and pay for a well researched and thought out answer then YOU have made a decision that the tax effects of your question is not material. YOU agree not to sue CPA for any professional services including answering of questions by telephone which CPA and YOU have neither agreed to be performed in writing nor for which CPA prepared a specific bill for that service.

All contracts in the state of California have an implied covenant of good faith and fair dealing. CPA will prepare your taxes in the hope of having YOU pay the least amount of taxes allowed under the law. There are no guarantees in CPA's work other than CPA's good faith effort to comply with your request and the law. The income taxes are your taxes and any savings that result from CPA's work are your savings. If YOU have any problems or concerns with the way the income tax returns are prepared, YOU agree not to sign and file the returns. When YOU sign and file them YOU have accepted what CPA has done.

YOU acknowledge that tax laws change and new court cases are decided on an ongoing basis. Decisions and advice given is based on the current situation and should be confirmed in writing if acted upon at a later date. Sometimes these changes are made retroactively. YOU should always make decisions based on good and sound economics and not tax motivations. If a planned for tax break does not materialize, YOU agree that YOU would have made the same decisions without the planned tax break.

If the tax break is material to your decision, then YOU should talk with CPA in person and bring in all pertinent papers and support material so that CPA can review this material along with your individual income tax records. YOU should also bring in a check to pay CPA for these professional services. If YOU choose not to meet with CPA and pay for a well researched and thought out answer then YOU have made a decision that the tax effect is not material.

The charge for the preparation of your tax return will be an amount CPA considers a fair and reasonable charge. The charge does not include responding to IRS inquires, notices, questions, or audits. It is based on a combination of time, costs, and complexity of your return. Upon request, CPA will give you a rough estimate of the charges. The fee is due at conclusion of the tax interview.

This contract is for the preparation of the tax return for the year first mentioned above. This contract can ONLY be extended if CPA and YOU agree by either of the following:

1. CPA sending a tax organizer to YOU and YOU set and keep a tax preparation appointment with CPA and bring in the tax organizer and all appropriate material and a check to pay CPA for the professional services of the preparation of the Federal individual income tax return form 1040 and the state income tax returns identified at the bottom of this contract; or
2. Sending back the tax organizer and all appropriate material to CPA along with a check in the appropriate amount (generally equal to the prior years fee) and CPA acknowledges accepting the extension of this contract by cashing your check.

A. Keith Skane, CPA, President