1. Introduction and Scope of Services
Thank you for choosing Polaris Tax & Accounting to assist you with your taxes. This letter confirms the terms of our engagement and outlines the nature and extent of the services we will provide.
We will prepare your federal and state income tax returns. Prior to filing, we will provide a draft copy of your returns through our secure client portal for your review, along with IRS Form 8879 (IRS e-file Signature Authorization) and any applicable state e-file authorization forms. At this stage, your return is deemed substantially complete, and all agreed services for the return have been performed. Fees are considered earned at that time, regardless of whether you ultimately authorize Polaris to transmit the return to the taxing authorities.
2. Review Period, Authorization, and Billing
You will have seven (7) calendar days from delivery to review the draft return and sign Form 8879. During this period, Polaris will address reasonable clarifications based on information already provided. If you fail to sign Form 8879 or otherwise remain unresponsive, Polaris may, at its discretion:
- Close your file without filing the return; and
- Charge the earned fee to the payment method on file.
Any subsequent reopening, amendment, or re-engagement will be treated as a new, separately billable service at Polaris’s prevailing rates. Payment of fees is nonrefundable once the return is deemed substantially complete. Initiating a chargeback for services rendered constitutes a breach of this agreement.
Billing Method
- Package Clients: If your tax return is included in a prepaid package, no additional tax preparation fees will be charged unless out-of-scope services (e.g., amendments, additional state returns, or complex disclosures) are requested.
- Non-Package Clients: Fees will be processed using the payment method on file once the return is deemed substantially complete, subject to the seven-day review window above.
3. Responsibility for Information
By signing Form 8879, you confirm that you have reviewed your return in good faith and that, to the best of your knowledge, the information provided is accurate, true, correct, and complete. You are solely responsible for disclosing all relevant information, including but not limited to foreign bank accounts, digital assets, and multi-state income. Polaris will not be responsible for penalties, interest, or amendments resulting from nondisclosure. Amendments due to late or omitted information will be treated as new engagements and billed separately.
Polaris will not be liable for penalties or interest imposed due to client delays, nondisclosure, or failure to act within the review period.
4. Reliance on Information Provided
Under the general due diligence standards of our profession, Polaris Tax & Accounting may, on most occasions, rely in good faith and without independent verification on information provided by you, third parties, and previously filed tax returns. We are not engaged to audit, review, compile, or otherwise verify the accuracy or completeness of the information you submit, and we have no responsibility to independently investigate or examine books, records, or documents unless required by law. While we may request clarification if data appears inconsistent or incomplete, the responsibility for full and accurate disclosure rests solely with you.
5. Limitations on Assurance and Verification Requests
From time to time, third parties (such as banks, mortgage companies, or government agencies) may request that we verify your income, employment, or tax filing status. Because our engagement is limited to tax return preparation, and we do not perform audits or reviews under generally accepted auditing standards, we are legally prohibited from issuing opinions or verification letters for such purposes. Our work product is not intended to benefit or influence any third party and may not be relied upon to obtain credit, loans, or other financial benefits.
6. No Responsibility for Fraud Detection
This engagement cannot be relied upon to disclose errors, fraud, or illegal acts that may exist. While we will not ignore information that appears incorrect, incomplete, or inconsistent, we do not assume responsibility for detecting fraud or misrepresentation. The responsibility for maintaining adequate internal controls and ensuring the accuracy of all information submitted rests entirely with you.
7. Reliance on Prior Information and Amendments
You agree to hold Polaris Tax & Accounting harmless for any errors or omissions in returns we prepare if such errors result from our good-faith reliance on information provided by you, your prior tax return preparer, or other third parties. If the IRS or state taxing authority later determines that such information was inaccurate, frivolous, or incomplete, you remain fully responsible for any resulting taxes, penalties, or interest. Any amendments required as a result of inaccurate or incomplete information you or your prior preparers provided will constitute a new and separate engagement, billed at our prevailing rates.
8. IRS Standards and Penalties
The Internal Revenue Service imposes penalties on taxpayers—and in some cases, preparers—for failure to exercise due care in return preparation. We will comply with our professional obligations, including making reasonable inquiries if the information you provide appears incomplete or inconsistent. However, we are not responsible for penalties or interest imposed due to inaccurate, incomplete, or withheld information on your part.
9. Scope of Return Preparation
Our engagement covers only the federal and state tax returns specifically identified in this agreement. We will not prepare other returns, schedules, or forms unless separately engaged in writing. If you have taxable activity in a state not disclosed to us, or you fail to notify us of such activity, you remain responsible for any consequences, including penalties, interest, or the loss of statute of limitation protections. We can assist in determining multi-state filing obligations, but only if separately engaged.
10. Foreign Income and Reporting Obligations
If you have derived income from foreign sources, or have a financial interest in or signature authority over foreign accounts or entities, you must fully and accurately disclose this to us. We will rely entirely on the information you provide. We can prepare required U.S. international reporting forms (including FBAR [FinCEN 114], Form 8938, Form 3520, Form 3520-A, Form 5471, Form 5472, Form 8865, Form 8621, and related schedules), but only if you disclose the necessary details to us in a timely and truthful manner.
You are solely responsible for informing us of your foreign income, accounts, or interests, and for providing accurate and complete documentation. We will not independently investigate or discover undisclosed foreign assets or accounts. Failure to disclose such information can result in substantial civil and/or criminal penalties, for which you accept full responsibility. Amendments or corrections resulting from nondisclosure will be treated as a new engagement subject to additional billing.
11. Foreign and Domestic Reporting Responsibilities, Joint Return Liability, and Extensions
Any person or entity subject to the jurisdiction of the United States—including individuals, corporations, partnerships, trusts, and estates—having a financial interest in, or signature or other authority over, bank accounts, securities, or other financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year in a foreign country, must file a Report of Foreign Bank and Financial Accounts (FBAR, FinCEN Form 114).
It is your responsibility to inform us of any foreign assets or accounts you may currently hold, directly or indirectly. Although there are limited exceptions, reporting requirements apply broadly, including to taxpayers who have signature authority over accounts owned by entities. For example, a corporate-owned foreign account requires filings by both the corporation and the individual corporate officers with signature authority. Failure to disclose the required information may result in substantial civil and/or criminal penalties.
We will prepare FBARs and other international information returns (e.g., Forms 8938, 3520, 3520-A, 5471, 5472, 8865, 8621) only if you disclose complete and accurate information regarding such interests. We will not independently investigate or discover undisclosed assets. You are solely responsible for truthfully disclosing any foreign financial accounts, entities, or assets. Polaris Tax & Accounting accepts no liability for penalties or consequences arising from nondisclosure or misrepresentation.
If applicable, please note that filing a joint return usually results in a lower tax liability than filing separately. However, filing jointly renders each spouse both individually and jointly liable for the entire tax liability reported or later determined by audit. This joint and several liability may be avoided only through very restrictive “innocent spouse” relief provisions. Filing status is ultimately your decision, and by signing this engagement, you acknowledge and accept full responsibility for that election. Polaris is not responsible for disputes between spouses or for liabilities resulting from the chosen filing status.
Extensions to file tax returns extend only the time to file, not the time to pay. Any tax due must still be paid by the original filing deadline. Failure to pay amounts due, or failure to make timely estimated tax payments, may result in penalties and interest imposed by the taxing authorities. All required documents and information must be submitted no later than thirty (30) days prior to the applicable filing deadline (original or extended). Information received after this deadline will result in an automatic extension and no guarantee of timely filing. Polaris does not accept “rush” requests after this cutoff under any circumstances.
Our engagement for tax return preparation does not include monitoring or ensuring compliance with other federal, state, or international reporting requirements (e.g., payroll returns, state annual reports, BOI/CTA filings) unless separately contracted in writing.
12. Client Responsibilities, Documentation, and Tax Authority Standards
You must provide all information necessary to prepare your returns in a timely manner. If complete information is not provided, we cannot guarantee that your returns will be filed on time. Federal, state, and local taxing authorities impose penalties and interest for late filing, failure to file, or underpayment of taxes. You remain solely responsible for all taxes, penalties, and interest imposed by taxing authorities, regardless of whether Polaris prepared the return.
It is your responsibility to remain responsive and engaged during the preparation of your return, and to promptly notify us of any changes in your contact information. If you send us information but do not receive a timely acknowledgment, you are responsible for following up to confirm receipt.
You are responsible for maintaining and safeguarding all supporting documentation for your returns, including but not limited to: auto, travel, entertainment, and related expenses; receipts for charitable contributions exceeding $250; and other substantiating records. Polaris will not be responsible for the disallowance of deductions or credits due to lack of adequate documentation, nor for any resulting taxes, penalties, or interest.
Polaris will rely in good faith on the information you provide, as well as third-party information such as Forms K-1, 1099, and 1098, without further verification unless something appears inconsistent. We do not audit, review, or examine your information, although we may request clarification if needed.
If applicable, you attest under penalty of perjury that the information reported by Polaris on IRS Form 8867 (Paid Preparer’s Due Diligence Checklist) has been reviewed by you prior to e-filing, and that all information provided to qualify for the Earned Income Credit or other refundable credits is accurate. You accept full legal responsibility for inaccuracies related to Form 8867.
Polaris will prepare only the returns you request under this engagement. All other returns remain your responsibility. Our fees do not include responding to IRS or state inquiries, audits, or examinations. Representation before any taxing authority requires a separate written engagement and is billable at Polaris’s standard rates.
We will use our professional judgment in preparing your returns. Where the law is unclear or interpretations differ among authorities, we will explain the possible positions available. We will adopt the position you select, provided it is consistent with professional standards. If the IRS or other taxing authority later contests that position, you may be assessed additional tax, interest, or penalties. Polaris assumes no liability for such assessments.
13. Record Retention
We will retain records related to this engagement for three (3) years from the later of the filing date or due date (with extensions). After this period, records may be destroyed without notice. Polaris does not keep original documents; all originals remain your responsibility to store in secure locations.
14. Confidentiality and Privileged Communications
If we are asked to disclose any communication that may be considered privileged, we will not do so unless required by law. You will have the opportunity to assert privilege, and you agree to reimburse Polaris Tax & Accounting for all reasonable costs, including legal fees, incurred in protecting such communications. Please note that confidentiality or privilege may be waived if you disclose our advice or communications to any third party (e.g., lenders, friends, business associates). You should consult with us before releasing such information.
15. Record Retention and Organizers
Polaris retains engagement-related records for three (3) years after completion of the engagement, after which records may be securely destroyed without notice. We do not retain or safeguard original records. All original records will be returned to you upon completion of the engagement, and you remain solely responsible for their preservation for future use or examination by taxing authorities. Each year, Polaris provides clients with a digital organizer via our secure portal, we require each client to complete this organizer before proceeding with the preparation of your Tax Returns.
16. Electronic Communication
We may communicate with you electronically (email, client portal, fax) to facilitate services. While we take reasonable steps to safeguard such communications, electronic transmission carries inherent risks of unauthorized access. By engaging us, you consent to the use of these methods and accept the associated risks. All sensitive documents should be provided exclusively through our secure client portal.
17. Investment Advice Disclaimer
Polaris is not an investment advisor and as such we cannot provide advice regarding the economic viability, risk, or consequences of any investment decision. We recommend you seek guidance from qualified investment advisors for such matters.
18. Fees, Payment, and Delinquency
Invoices are due upon presentation. Accounts are deemed delinquent if unpaid after 30 days. If your account is deemed delinquent, Polaris may suspend work or withdraw from the engagement. You agree that Polaris shall not be liable for any damages resulting from suspension or withdrawal due to nonpayment. If work has been performed (including preparation of draft returns) and you later decline to authorize filing, the full fee remains earned and immediately payable.
19. Dispute Resolution and Governing Law
This agreement shall be governed by the laws of the State of Florida. Any disputes arising under this engagement shall first be submitted to mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes. If not resolved within 60 days, disputes shall be submitted to binding arbitration administered by the AAA. Costs of mediation or arbitration shall be shared equally by both parties. Venue for all proceedings shall be in Broward County, Florida.
To the fullest extent permitted by Florida law, Polaris’s liability for any claim arising out of this engagement shall not exceed the fees actually paid for the services in question. Polaris shall not be liable for indirect, consequential, or punitive damages under any circumstances.