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Financial Planning Horizons Guarantee

Tax Return Error Protection

Should you receive a letter from the Internal Revenue Service, or State taxing authority indicating that an “error” was found in your return and a change is being proposed that will increase your tax liability, I offer the following guarantee:  I will prepare all the necessary amendment paperwork to correct the error (if required) at no charge.  If I was “at fault” having caused the error, any interest or penalties imposed will be paid by me, you will pay only the tax.  For this guarantee to apply the following conditions must be met:

  1. The “error” was a result of an incorrect mathematical calculation causing the tax liability to be lower than permitted by Federal or State code as determined by the taxing authority.
  2. The “error” was a transposition error.    For example:  I entered $10,123.98.  The amount should have been $10,321.98.
  3. I failed to report an item of income that you provided me at the time I prepared the tax.  For example:  You provided me a 1099-INT interest statement for your savings account with interest income of $300.  I failed to report this income on your taxes.
  4. The error was the result of a forms reporting error.  For example:  I should have reported an item on one particular form, or schedule, but reported it on an incorrect form or schedule.
  5. I failed to include the required forms, schedules, or other information required by tax code.

The guarantee shall not apply should:

The taxpayer fails to provide the necessary form and as a result, the income was not reported.  For example:   Taxpayer has interest income of $300 from his savings account, taxpayer does not provide the 1099-INT form, or Bank institution does not deliver the 1099-INT to the taxpayer.

  1. A form provided by the taxpayer had incorrect, or invalid information and was later corrected and submitted to the taxpayer, but taxpayer failed to provide the corrected copy.  Example:  Taxpayer received form 1099-DIV reporting dividend income.  Dividend income is understated.  Financial institution issues taxpayer a revised 1099-DIV with the correct dividends.  Taxpayer either fails to provide the revised 1099-DIV, or taxpayer’s taxes have already been filed.
  2. The taxpayer fails to report income, understates income, or overstates expenses in situations where no information reporting form is issued.   For example:  Taxpayer has a small business which collects income in the form of personal checks and cash.  Taxpayer under-reports the income, and/or over-reports expenses.   Taxpayer’s records rejected by taxing authority.
  3. Any other situation that does not clearly meet the guarantee conditions established in items 1-5 above. 

 Amended Return Guarantee

Should a tax return that I have previously prepared required the issuance of an amended tax return do to no fault of the tax practitioner, the cost to prepare and amend the tax return shall be the then prevailing hourly rate. 

Notwithstanding the guarantees expressed above, I offer the following “50% fee guarantee” for tax returns not previously prepared by me.  Should I discover, in the course of preparing your tax return, errors or omissions in a previous year’s tax return, I may offer to amend this return.   This offer is based on my belief that amending the return will result in a refund to you.

Should you agree, the cost to prepare and amend the tax return shall be the then prevailing hourly rate unless the amendments made, result in a lower than projected refund.   The amended return “50%+ fee guarantee” works like this:

Example 1:  Amendments made, result in a much lower than expected $300 refund.  Hourly rate however results in a $300 fee.   You pay 50% of the refund or $150.  When you receive your refund, the check will include interest calculated back to April 15th of the year of the tax return, or the date you filed the return, should the return have been filed after April 15th.  With interest your refund is more than 50%.

Example 2:  Amendments made result in a $1,200 refund.  Hourly rate results in a $700 fee.   Since the fee is greater than $600, or 50%, the fee is reduced to $600.  When you receive your refund, the check will include interest calculated back to April 15th of the year of the tax return, or the date you filed the return, should the return have been filed after April 15th.  With interest your refund is more than 50%.

Example 3:  Amendments made result in a $3,000 refund.  Hourly rate results in a $500 fee.   Since the fee is less than 50% of the refund you pay the full fee and nothing more.  When you receive your refund, the check will include interest calculated back to April 15th of the year of the tax return, or the date you filed the return, should the return have been filed after April 15th.  With interest your refund is more than 50%.

Example 4:  After reviewing the return, it is determined that there are other errors in the tax return that would increase the tax liability offsetting the items that would create a refund.   The amendment is returned to the taxpayer with no changes, and no charges.  Should it be determined that not amending the return puts the taxpayer at high risk of audit, the taxpayer can decide to go forward, or not, paying the regular fee. The 50% + guarantee will not apply in this situation.