Disclaimers and Requirements
Estimated Tax Payments: In certain scenarios, the Taxpayer may be obligated to make estimated tax payments directly to the IRS or adjust their withholding. This requirement typically applies to self-employed individuals, businesses, or those receiving 1099 income. These payments serve as preemptive credits towards the Taxpayer’s current year tax liability, mitigating the risk of a significant balance due in the subsequent tax season. Additionally, these payments can potentially reduce the Taxpayer’s disposable income, which may influence the terms of a negotiated payment plan with the IRS.
Non-Compliance and Disclaimer of Liability: Failure to file future tax returns punctually may result in the default or nullification of any resolution or program established by the Firm on the Taxpayer’s behalf. The Firm assumes no responsibility for the Taxpayer’s ongoing compliance with IRS regulations beyond the scope of the services explicitly outlined in the agreement. Furthermore, the Firm bears no liability for any tax payments owed by the Taxpayer.
Changes in Financial Circumstances: The Taxpayer must promptly notify the Firm of any changes to their income or expenses that could impact their ability to meet tax obligations. Such changes may necessitate adjustments to the agreed tax resolution strategy. The Taxpayer understands that failure to disclose material changes may result in the termination of hardship arrangements or other previously negotiated resolutions.
Prohibition on Incurring New Tax Debt: The Taxpayer agrees not to incur any new tax liabilities, regardless of the amount, during the term of this agreement. This includes personal, business, and payroll tax obligations.
Strict Compliance with Filing and Payment Requirements: The Taxpayer must file all future tax returns punctually, without seeking extensions. If the Taxpayer ceases to receive W-2 wages, they are responsible for making estimated tax payments to avoid future tax debts.
Communication with Tax Authorities: The Taxpayer shall not communicate directly with the IRS or any state tax authority regarding their tax matters. All communications must be conducted through the Firm, which holds a valid power of attorney to represent the Taxpayer. Unauthorized communication may jeopardize the resolution process.
Consequences of Non-Compliance: Failure to adhere to these terms, including the accumulation of new tax debt or failure to file returns on time, may result in the following:
– Default of the current tax resolution strategy
– Additional fees for professional services
– Forfeiture of potential refunds
– Legal action by the IRS to collect outstanding balances
Liens and Real Estate Transactions: The Taxpayer acknowledges that existing tax liens may impede real estate transactions. It is the Taxpayer’s responsibility to disclose their tax situation to any real estate agent or lender involved in such transactions. The Firm cannot remove tax liens, as their release is solely within the IRS’s discretion.
IRS Liens: The IRS retains the right to file tax liens against the Taxpayer. Any existing liens will remain until the underlying tax balance is fully satisfied.
Critical Note: The Firm cannot guarantee any specific resolution or outcome until all of the Taxpayer’s tax returns have been filed and processed by the IRS, or until the IRS can independently verify the Taxpayer’s income.
Communication: The Firm is committed to providing assistance and guidance throughout the tax resolution process. The Taxpayer agrees to the Firm’s primary channels of communication including phone, email, and text messaging.
Fee/Payment Disclaimer: The Firm’s fees exclusively cover services rendered to assist the Taxpayer in achieving compliance with IRS regulations. These services encompass the preparation, filing, and IRS assessment of all outstanding tax returns. Upon completion of these services, the Firm will advocate for a resolution that aligns with the Taxpayer’s financial circumstances.
Guarantor’s Obligations (if applicable): If the Taxpayer defaults on any loan used to finance the Firm’s services, or if the Taxpayer is a business entity, the undersigned individual personally guarantees timely payment. The guarantor waives certain rights and consents to the Firm’s enforcement of this guarantee, including the recovery of legal fees.
Incorporation of Terms: This addendum is fully incorporated into the original Service Agreement between the Firm and the Taxpayer. All terms of the original agreement, including those related to cancellation, refunds, and the prohibition on new tax debt, remain in effect except as modified herein.