Service Engagement Terms
Clinton Donnelly and Donnelly Tax Law (hereafter we, us, our) offer our services to you under these terms. You agree to these services when you pay a deposit to start work. The services provided will be listed on the invoice.
Tax Return Preparation:
We will prepare your tax returns from the information that you give us. We may ask for clarification, but we don’t verify your information. Our pricing doesn’t include exotic or multiple forms/schedules.
We require all tax return preparation clients to become Audit Defense members of CryptoTaxAudit (cryptotaxaudit.com) before the start of services. We automatically file a six-month extension of the due date for all returns to allow adequate time to prepare your return.
After receiving your approval of the return and your payment of the final invoice, we electronically file or mail your returns to the tax authorities. The work of tax return preparation ends upon successfully filing. Responding to subsequent letters from tax authorities is not included in tax return preparation services.
Cryptocurrency Income Calculation:
We will exert a reasonable effort to calculate your taxable income from cryptocurrency activities as determined under U.S. tax law or as based upon reasonable legal authorities.
The calculation of income based on central exchange transactions is limited by the completeness of transaction histories. The accuracy of income calculation from DeFi blockchains is significantly limited by numerous factors.
Our DeFi Comparison service provides blockchain income results from leading DeFi crypto gain calculation services. Non-fungible token income and cost basis determination is significantly impeded by protocol immaturity. Consequently, you may need to approximate the taxable income.
During an audit, we offer a deep-dive, manual forensic analysis of blockchain results for maximum accuracy for an additional price as available.
The work of cryptocurrency income calculation ends upon acceptance of the results.
Estimating Taxes Owed:
Tax authorities require you to pay income taxes during the year as the income is received. Employers do this by withholding taxes from paychecks. For other income, you should estimate and pay taxes every quarter as earned. The IRS requires 90% of taxes owed to be paid by January 15th, and 100% paid by April 15th (for individuals) to avoid back interest. These dates remain unchanged by filing the six-month extension of the return due date. Estimation service is not included in the tax return preparation service.
Payment of Services:
For tax preparation services, a nonrefundable deposit of at least 60% is due up-front, and an additional 20% upon completion of crypto gains calculations and the balance is due before the filing of returns. The invoice will be adjusted to reflect changes in the scope of crypto calculation and return preparation.
Payment for representation services, retainers, hourly services, and actual and reasonable expenses, if any, is due upon invoice. Failure to pay an invoice when due shall cause us to stop providing services without further notice.
Representation before Tax Authorities:
We can represent you in matters of income examination(audit) and debt resolution, including penalty abatement, installment agreements, Currently Non-Collectable status, and Offers in Compromise.
We require all tax return preparation clients to be members of CryptoTaxAudit (cryptotaxaudit.com) during representation services.
Representation services are separately invoiced.
The tax authorities decide the outcome of all requests made before it, subject to appeal. Despite our best efforts, we have no control over their actions.
Tax authorities have significant authority to enforce their demands, including filing summons, seizing assets, bank accounts, garnishing wages, fines, and imprisonment.
Therefore, we require your prompt and complete response to all information requests from us to protecting your rights and assets. Procrastination, deception, and negligence are grounds for terminating our representation without refund.
Enrolled Agents adhere to the code of ethics and rules of professional conduct of the National Association of Enrolled Agents, which are more stringent than those required by law.
We collect nonpublic personal information about you either provided to us by you or obtained by us with your authorization.
We do not disclose any nonpublic personal information we obtain except as required or permitted by law (IRS regulations 301.7216-2 and 301.7216-3). Permitted disclosures include, for instance, providing information to our staff and to third parties who need to know that information to assist me in the providing of services to you.
The third-party systems to which we disclose nonpublic personal information include tax authorities (IRS and state), Thomson-Reuters Ultratax (tax software), Citrix (ShareFile repository), DocuSign (electronic signatures), and Copper (client management system). All these are U.S.-based companies with significant data protection standards.
We do not maintain an office in the United States except for correspondence purposes. Clinton Donnelly primarily resides outside the United States.