Tax Planning Contract

Jeff Burum, CPA, MBA, LLC
6799 Bismark Rd Ste E Colorado Springs, CO 80922
Ph/Fax 719-596-3718/9
Cell 216-2955
16055 Old Forest Pt Ste 300, Monument, CO 80132.
Ph/Fax 719-488-5637/488-5651
jbcpa_co@hotmail.com / www.jeffburum.com

Letter of Engagement for Business Start-ups/Accounting/Tax Services/Financial Planning

Thank you for choosing me to help you plan and/or solve your tax, accounting and/or financial planning issues. I am a licensed CPA in Colorado who specializes in income taxes, payroll and payroll tax services, financial planning, and business start-ups. I am a former Chief of Budget at the USAF Academy, Instructor of Income Taxation at Regis University, and an assistant professor of accounting at Colorado Technical University and Education America.
Disclosure: Securities in retirement, insurance, annuity plans, life insurance, etc are offered separately through The Leaders Group, Inc. Advisory services are offered through TLG Advisors, Inc (broker for securities purposes), and are conducted separately through Jeff Burum, Investment Advisor Representative ( DBA, Professional Financial Planning, Inc.). I receive separate commissions from financial institutions for your investments as this is a separate business with separate business liability and licenses. Please discuss my commissions and any other issues and see the prospectus of each investment in advance so that we have full disclosure and you are completely satisfied.
Incorporating services are also offered separately but no legal advice can be offered.

Client Objectives/Concerns:
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Client Responsibilities:

1. The client is responsible for abiding by the tax laws; this includes proper record keeping, timely tax filings, providing complete and accurate information, and reviewing tax returns for accuracy prior to filings. We are not required to audit you unless you provide conflicting information to us. There is no extra charge to clients for asking questions on simple tax matters. There will be a research charge for more complex issues.

2, You are liable for all relevant penalties and interest for failure to comply with the applicable tax laws and suspense�s. We will correct any errors we make at no additional charge which are not due to lack of information or miscommunication. You should also note the IRS has increased tax preparer liabilities for frivolous tax returns and you will be responsible for those fines if they are due to your omissions, misstatements, errors, etc.

3. You are responsible for submitting records and relevant information to us in a reasonably timely manner so that tax suspense deadlines may be met:

Monthly payroll taxes are generally due to the bank on Fm 8109 (coupon) NLT the 15th of the following month unless the payroll liabilities are less than $2500/qtr; coordinate with us NLT the 10th. Note: payroll taxes may be due each payroll date if payroll taxes exceeded $50,000 for the "look back" year. Colorado Wage withholdings may also be subject to monthly payment schedules as well, coordinate with us.
Quarterly federal/CO wage withholding tax (941, CO, ) and unemployment filings (FUTA, SUTA) are generally due NLT the 31st of the month after the last month of the quarter (Apr 30, Jul 31, Oct 30, Jan 31). Coordinate with us NLT 10th

Annual 1099s (for subcontractors earning $600 or more) and W-2s are due to employees/contractors NLT than Jan 31st following the previous tax year. W-3s and 1096s are due to government NLT Feb 28th of the year following the calendar tax year. Coordinate with me NLT Jan 10. Obtain a new W-4 and I-9 ( www.ins.gov ) from each employee and W-9 from each subcontractor before contracted work begins and update W-4/W-9 each year.

You should provide your checkbook register, bank statements, cash disbursements logs, credit card statements, payroll/payroll tax forms and any other necessary tax information to us NLT the 10th of the following month in order to expedite the bookkeeping and tax accounting process.
Sales taxes are generally due to the government NLT the 20th of the following month: pay the same time as payroll taxes. Monthly sales taxes are due to us NLT the 10th of each month
Personal tax estimates are generally due April 15, June 15, Sep 15, and Jan 15. Corporate estimates are due a month earlier.

Note: We will give one courtesy call if we notice your documents are not in our possession within the above-specified timeframes.

You are responsible for providing the necessary start-up information on the attached requested list of business documents.
You are responsible for reviewing your financial statements to ensure they are complete and accurate, and coordinating with us to ensure expenses are properly recorded according to the chart of accounts.
You are highly encouraged to do tax planning in the third quarter of the calendar year prior to filing your taxes in order to gain the most benefit from our services. As a regular client, we will provide many answers to your �quick� questions free of charge throughout the year.
You are advised to make copies of any documents you give us to avoid misplacement of important documents. We are not responsible for these documents.

Our Responsibilities

We are responsible for ensuring you are aware of applicable tax due dates. We recommend you become familiar with IRS Circular E,IRS pub 17, and IRS Publication 15 for payroll tax information, reasonable salary requirements, as well as independent contractor issues.
We are responsible for advising you on the applicable tax laws as we understand their application to your particular situation.
We will prepare necessary tax filings based on the information we are provided from you.
We will exercise due diligence in accordance with applicable laws and accounting methodology as we perform various tax and accounting work. We are not required to audit your information unless you provide inconsistent and unreasonable data. In any case, our function is to prepare you for a successful audit. We can never accept any responsibility for fraud by you or your employees, or any misstatements you may make to us but we can assist in implementing internal controls.
We will create financial statements for you based on the chart of accounts and provide financial advice.
We will support you in a government audit or correspondence with the government at the specified billing rate
We may be able to provide you referrals to other business professionals who may be able to help you conform to statutory requirements or provide other business services.
As a matter of practice, we do not provide audits, reviews, or compilations, or legal advice; but we can provide accounting support. Also, due to increased privacy controls by the IRS, please do not ask us to send any tax returns or financial statements to third parties; we will give them to you and you give to the appropriate third party.

Liability Waiver

Our liability, if any, will be limited to the amount of income we receive from the client for the specific tax issue at risk for any interest and penalties, but never the client�s tax or preparer penalties for omissions, errors, etc. This waiver supersedes any laws or policies stated anywhere at anytime. Moreover, we are not liable for any subsequent changes in the tax code, which may adversely affect the client, or the client�s failure to provide all relevant information, or the client�s failure to review their taxes before signing the return, or the client�s failure to file their taxes in a timely manner.

Rates

As of Jan 2010, the following rates apply:

$125/hr for consultations (e.g.: tax returns, financial analysis, consultations, financial planning, etc.)

$55/hr for bookkeeping* (e.g.: check and JE data entry)
* Flat rates for bookkeeping are available for routine clients after initial start-up
These rates are subject to change without client notification or approval. However, the firm will do its best to advise past clients and will advise all clients before performing new work . Rates do not include any travel, long distance phone charges, mail, copying or any other specific client costs incurred (which will be added to the bill at cost).

Billing

Monthly bills are due upon receipt. However, financing is available under a separate agreement at 12% per annum interest rate. In the event the client fails to pay, the client agrees the service provider may terminate/suspend services at anytime, assess the client a $15 late fee for each month of non-payments, and pay for any court and collection costs should payment not be received after three notices.
Estimate:
Monthly Bookkeeping/Payroll/Taxes
Quarterly tax filings
Annual Taxes
Note: The above estimate may vary based on client changes and/or unknown business issues or factors. Unknown work will be billed at the regular billing rates.

Client: ________________________________ _______________________
Signature Date
Service Provider _________________________ ________________________ Signature Date
Signature above acknowledges agreement to the above understanding and constitutes a legal, binding contract in the State of Colorado. This contract may not be altered in anyway

Requested Business Information

Client Name ________________________ SSN ____________________ Home Phone _________________________________
Home Address __________________________________________________________
Business Name __________________________________________________________ Type of Entity _____________________
Business Address _________________________________________________________
Business Phone _____________________ Cell ______________________ Fax ________________________
Associated entities ___________________
Federal Employer ID ______________________
CO Employer ID/Withholding Number ______________________
CO Sales Tax License Number __________________
CO DOL Number ____________________
Name of individual authorized to write checks __________________
Bank account number and banker�s name (optional) ______________________
Attorney�s name and phone (optional) ______________________
Name and phone number of last accountant ____________________________________
Name and phone number of financial planner ___________________________________
Prior Year Depreciation Report Y/N
Last three complete business tax returns Y/N
Last three complete owner tax returns Y/N
Copy of corporate/LLC filing Y/N
Complete list of shareholders/members with their addresses, SSNs, basis, loans Y/N
Copy of corporate minutes or operating agreements Y/N
List of assets, including value and acquisition date Y/N
List of debts transferred to the business Y/N
Copies of previous financial statements Y/N
Copy of annual budget Y/N
Power of Attorney on File Y/N
Electronic FTD in place Y/N
Number of Employees ________________
All W-4s/W-9s and pay scale on file with us Y/N
All I-9s on file with us Y/N
List of employees with special deductions Y/N
Payrolls are paid on what schedule ___________
List of employer-sponsored benefits (medical, dental, vision, pension, etc) and for each
List of subcontractors with SSNs/EINS (W-9s)
IRS S Corp approval letter/Shareholder Basis

Copyright- Jeff Burum, CPA, MBA, LLC 2010
This information may not be copied/used/transmitted. Etc. without the express written permission of Jeff Burum, CPA,MBA LLC

Payroll Taxes (Monthly/quarterly, annual)

IRS EFT payroll deposit due 15th of the following month. Put FEIN and tax period on memo section of check. Note: EFTPS is also encouraged by the IRS and CO DOR
Quarterly federal/CO wage withholding tax (941, CO) and unemployment filings (FUTA, SUTA) are due NLT the 31st of the month after the last month of the quarter (Apr 30, Jul 31, Oct 30, Jan 31).

3. Annual 1099s and W-2s are due to employees/independent contractors NLT Jan 31. W-3 and 1096 due NLT Feb 28. Collect new W-4s from employees and W-9s from independent contractors each Jan.

4. Corporate and partnership income taxes are due NLT Mar 15. They can be extended to as late as Sep 15
5. Personal estimated taxes are due Apr 15, Jun 15, Sep 15, and Jan 15. Individual taxes due NLT 15 Apr, extended to 15 Oct.

Sales Tax (monthly/quarterly)

1. Sales taxes are generally due to the city by the 20th of the following month: due to the state/county by the 20th of the month after the quarter end. You need Colorado Springs and CO/El Paso acct numbers