INCOME TAX RETURN PREPARATION AGREEMENT

I appreciate the opportunity of working with you and advising you regarding your federal and state individual income taxes. In order to ensure an understanding of our mutual responsibilities, I ask all of my clients for whom returns are prepared to confirm the following arrangements:

1. I will prepare your Federal and resident state individual income tax returns; and, for an additional fee, any other state returns you may be required to file. These returns will be prepared from information which you will furnish to me. I will not audit or make any other verification on the data you submit, although it may be necessary to ask you for clarification of some of the information. I will furnish you with questionnaires and/or worksheets to guide you in gathering the necessary information. Your use of such forms will assist in keeping the fee to a minimum. Any other returns (for example, estate or gift) must be specifically requested.

2. It is your responsibility to provide all the information required for the preparation of a complete and accurate tax return. You should retain all documents, cancelled checks and other data that form the basis of income and deductions for at least the period of the statute of limitations. You should also retain documents that support items carried over into open years, such as cost basis information nondeductible IRA's, net operating losses, etc. This information may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You have the final responsibility for the income tax returns; therefore, you should review them carefully before you sign them. If for some reason you believe your returns have not been received by the taxing authorities, (i.e., didn't get your refund or they haven't cashed your check) then please contact me.

3. My work in connection with the preparation of your income tax returns does not include any procedures designed to discover defalcations or other irregularities, should any exist. I will render such accounting and bookkeeping assistance as determined to be necessary only for the preparation of your income tax returns.

4. I will use my professional judgement in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities interpretation of the law and other supportable positions. Unless otherwise instructed by you, I will resolve such questions in your favor whenever possible.

5. The law provides various penalties that may be imposed when taxpayers understate their tax liability. If you would like information on the amount or the circumstances of these penalties, please contact me. The Internal Revenue Service also imposes penalties upon taxpayers and return preparers for failure to observe due care in reporting for income tax returns.

6. Your returns may be selected for review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, I will be available upon request to represent you. However, such representation is not included in your tax preparation fee and I will render additional invoices for the time and expense incurred. Moreover, the taxing authorities may correspond with you regarding your tax return. You agree to timely forward this correspondence to us for review and analysis. Additional fees may be charged depending upon the response required. Our firm also provides you with "audit insurance" to protect you from the cost of additional professional services rendered to represent you in the event of an audit by the taxing authorities. This insurance lasts as long as the statute of limitations is open for the tax year involved. Our basic fee is $_______ for an individual return and $_____ for a business return, (schedule C or F). Please indicate below whether or not you want this insurance.

__________ Yes, add the appropriate fee above to my bill for audit insurance. __________ No, I do not wish to be covered by audit insurance.

7. My fees are based upon a combination of our standard rate schedule for the type of forms required to be filed, the time incurred to prepare an accurate and complete return, and the relevant tax issues associated with your return plus out of pocket expenses. Our minimum fee is $______ and we require a deposit of that amount at the time we begin preparation of your tax return. The remaining balance will be billed to you. All invoices are due and payable upon presentation. Unpaid invoices are subject to a 1% finance charge ($5.00 minimum) after 30 days. Costs to collect, including reasonable attorneys fees, will be added to any outstanding invoices.

8. The IRS imposes penalties for failure to make timely contributions to your IRA, SEP, KEOGH or other retirement plans. Moreover, excess contributions or required distributions are also subject to penalties and other taxes. You acknowledge responsibility to make such contributions and distributions as required by IRS regulations.

9. Wages to family members in the conduct of an active trade or business are required to be commensurate with the activities performed, must be paid, and must be reported on form W-2 and other payroll reports. Taxpayer acknowledges that wages paid and deducted on the return are for services performed at reasonable wages.

10. In the event our fees remain unpaid for more than 30 days, we reserve the right to discontinue our work on your account. Your continued nonpayment of fees acknowledges your responsibility for any additional taxes, penalties, interest or other costs associated with the non-filing of any tax returns.

If the foregoing fairly sets forth your understanding, please sign in the space indicated. And thank you for your trust in our professional tax preparation services.

Acknowledged,

_______________________________

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