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Engagement Policy

Engagement Agreement Records & Policy Certification

The undersigned taxpayer(s) hereby engages DB Tax & Wealth to prepare or review current or prior year or amended income tax returns, and by doing so enters into this engagement agreement. Taxpayer has provided DB Tax & Wealth with overall information, documents and records to be used by DB Tax & Wealth for such return preparation or review in general. In addition, taxpayer may be involved with one or more of the specific expense/loss/return issues listed below on their current or prior year income tax return prepared or reviewed by DB Tax & Wealth. The taxpayer, by his/her signature below hereby certifies to DB Tax & Wealth that all the information, documents and records provided are true and accurate, and that any books, records, logs required by the IRS or WDR to substantiate all items on the return, including the specific issues listed below, exist in good order and that they direct DB Tax & Wealth to rely on that information in preparing said return and have furnished DB Tax & Wealth with a summary of. The taxpayer further certifies the DB Tax & Wealth had given them the specific disclosures detailed below, and that they fully understand and acknowledge the requirements of, and the consequences of non-compliance with, tax laws in general and those particular tax issues specifically. Taxpayer also understands that DB Tax & Wealth is subject to the rules contained in IRS Circular 230, and agree the DB Tax & Wealth retains the right to refuse to prepare or transmit any return it suspects may violate those rules. Taxpayer also herewith agrees to and accepts the policy of DB Tax & Wealth regarding any errors as contained herein.

Specific Tax/Record Issues

A. Vehicle Expenses: If I have claimed vehicle expenses of any kind on any part of my return, I hereby certify that I have the required written log book to substantiate the business use/mileage claimed, and have furnished DB Tax & Wealth with a written summary of that mileage from my log. I have adequate written receipts and records to support any actual expenses claimed. DB Tax & Wealth has explained all of the record keeping requirements for vehicle expenses claims and also the consequences for failing to keep said records, including full or partial disallowance of the expenses which will result in additional taxes, interest and penalties.

B. Businesses & Rentals: If I have business or rental schedules on my return, I hereby certify that I have adequate books and records backed by written receipts, cancelled checks, bank statements, etc. to substantiate all income and expenses claimed and that I have furnished DB Tax & Wealth with a written summary of income and expenses based on my books and records. DB Tax & Wealth has explained all of the record keeping requirements for these expenses claims, and also the consequences for failing to keep said records including full or partial disallowance of the expenses which will result in additional taxes, interest and penalties.

C. Gambling Losses/Winnings: If I am reporting gambling losses on a return, I certify that: I have reported to DB Tax & Wealth all of my gambling winning (whether reported out on form W2-G or not and regardless of amount); that I understand that ALL gambling winnings in any amount are taxable, not just those over the $1200 or $600 IRS payer reporting limits; that I understand that gambling losses are deductible only to the extent of my winnings and cannot be netted first; that I have a daily diary/log of winnings and losses that contains certain required information; that in addition to said diary/log I also have and retain other proof of winnings and losses. DB Tax & Wealth has explained these requirements and the consequences for failing to keep such adequate records including full or partial disallowance of the gambling losses claimed and/or addition to income of unreported gambling winnings either of which will result in additional taxes, interest and penalties. DB Tax & Wealth has provided me with an excerpt from Pub 529 pg.12 detailing the recordkeeping requirements, receipt of which is also acknowledged herewith.

D. Charitable Contributions: I certify that DB Tax & Wealth has explained to me the recordkeeping requirements for both cash and non-cash charitable contributions currently effective. These require written records for all cash donations and restrict deductions for certain non-cash items. I certify to DB Tax & Wealth that I have such records and direct DB Tax & Wealth to rely on this statement to claim these deductions. DB Tax & Wealth has explained to me the consequences for failure to keep such records which may result in the full or partial disallowance of these deductions which would result in additional taxes, interest and penalties.

E. DB Tax & Wealth policy on return errors: If DB Tax & Wealth makes an error on a return, as defined later, that will result in additional taxes, interest, or penalties to be assessed, it is our policy to file whatever correspondence or amended returns are needed to correct such error at no cost to the client, and to return the client to the monetary position that they would have been in had the error never occurred. Specifically this means that the client agrees to pay any additional taxes assessed, as they would have been owed anyway had the error not occurred. What would nothave been owed had the error had not occurred, is any interest or penalties assessed, and DB Tax & Wealth agrees to reimburse the client for any such amounts up to the date that the error is discovered and corrected and, at the request of the client, to refund the return preparation cost to the client for the year of error. The client will bear responsibility for any interest or penalties beyond the date corrected due to failure to pay taxes due or refusal to file any needed corrective returns. An error by DB Tax & Wealth specifically does NOT include the following; adjustments or disallowances involving failure to have adequate books and records of any kind, or unreported income; adjustments or disallowances of deductions, exemptions or credits based on facts and circumstances not proven to be known, or could not reasonably have been know by DB Tax & Wealth at the time the return was prepared; retroactive tax law changes; any adjustments based on missing income not proven to have been provided to DB Tax & Wealth at the time of return preparation as evidence by the DB Tax & Wealth stamp on a reporting document.

F. DB Tax & Wealth policy on Audit/Letter Responses: Taxpayers acknowledge that there will be a base fee of $80 for responses to CP-2000, 566-B or similar letters including any required amended returns. This fee may be more in complex cases. This fee is waived if the response is needed due to a DB Tax & Wealth error or an IRS error in processing. In person office audit representation will be billed on an hourly basis at the then current rates. I understand that I will be charged an additional fee if I request additional copies of any of my tax forms. Minimum of $25.

G. Federal Tax Practitioner Privilege: On July 22, 1998 attorney-client privilege was granted to any federally authorized tax practitioner (Enrolled Agent or EA), authorized to practice before the IRS. Privileged communication can be comprised of an oral, written, nonverbal communication, made by or to a client, in confidence with the exception of disclosure. Exceptions to the attorney-client privilege rule includes business advice, pre-existing records, pre-existing documents, tax return preparation, billing, fees and any waiver of privilege. Privilege does not extend to any criminal proceeding before the IRS and any entity involved with tax shelters. Any and all information that a client provides to us, to prepare their individual tax return is NOT confidential. We are bound to provide this information, documentation and related tax returns to any federal government authority requesting such information from us.

C. Excerpt from IRS PUB 529 pg.12

You must report the full amount of your gambling winnings for the year on form 1040 line 21. You deduct your gambling losses for the year on Schedule A (form 1040) line 28. You cannot deduct gambling losses that are more than your winnings.

You cannot reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore your records should show your winnings separately from your losses.

Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings. Your diary should contain at least the following items:

  • date and type of specific wager or wagering activity
  • name and address or location of the gambling establishment
  • name of other persons present with you at gambling establishment
  • amount(s) you won or lost

Proof of winnings and losses. In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through form W2-G, Certain Gambling Winnings. Form 5754, Statement by persons receiving gambling winnings, wagering tickets, cancelled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment.

CAUTION: these recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. They are not all-inclusive. Your liability depends on your particular facts and circumstances

DISCLOSURE

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Although Avantax Wealth ManagementSM does not provide or supervise tax or accounting services, Avantax Representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative.

This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth ManagementSM or its subsidiaries. Avantax Wealth ManagementSM is not responsible for and does not control, adopt, or endorse any content contained on any third party website. This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

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