Overview
This addendum to the engagement letter describes my standard terms and conditions (“Terms and Conditions”) related to my provision of services to you. This addendum and the accompanying engagement letter comprise your agreement with me (“Agreement”). If there is any inconsistency between the engagement letter and this Terms and Conditions Addendum, the engagement letter will prevail to the extent of the inconsistency.
For the purposes of this Terms and Conditions Addendum, any reference to “firm,” “I”, “me,” or “my,” is a reference to Maura A. Halkiotis, CPA and any reference to “you,” or “your” is a reference to the party or parties that have engaged me to provide services. References to “Agreement” mean the engagement letter or other written document describing the scope of services, any other attachments incorporated therein, and this Terms and Conditions Addendum.
Billing and Payment Terms
My practice requires payment of a retainer upon execution of this Agreement. You agree that the retainer will be earned as my professional time to complete the engagement is incurred. The retainer will be applied to the final billing and any unused balance will be refunded at the end of the engagement.
I will bill you for professional fees and out-of-pocket costs upon delivery of your tax returns. Payment is due on receipt. Tax returns will not be delivered or electronically filed until payment is made in full.
I reserve the right to suspend or terminate work for non-payment of fees. In the event that work is discontinued I will not be liable for any damages you may incur as a result of the work stoppage.
Electronic Data Communication and Storage
In the interest of facilitating services to you, I may send data over the Internet, or store electronic data via computer software applications hosted remotely on the Internet or utilize cloud-based storage. Your confidential electronic data may be transmitted or stored using these methods. I may use third party service providers to store or transmit this data, such as providers of tax return preparation software. In using these data communication and storage methods, I employ measures designed to maintain data security. I use reasonable efforts to keep such communications and electronic data secure in accordance with our obligations under applicable laws, regulations, and professional standards and require our third party vendors to do the same.
You recognize and accept that I have no control over the unauthorized interception or breach of any communications or electronic data once it has been transmitted or if it has been subject to unauthorized access while stored, notwithstanding all reasonable security measures employed by me or my third party vendors. You consent to the use of these electronic devices and applications and submission of confidential client information to third party service providers during this engagement.
Third Party Service Providers or Subcontractors
In the interest of enhancing our availability to meet your professional service needs while maintaining service quality and timeliness, I may use a third party service provider to assist in the provision of services to you, which may include receipt of your confidential information. This provider has established procedures and controls designed to protect client confidentiality and maintain data security. As the paid provider of professional services, my firm remains responsible for exercising reasonable care in providing such services, and my work product will be subjected to our firm’s customary quality control procedures.
By accepting the terms and conditions of our engagement, you are providing your consent and authorization to disclose your confidential information to a third party service provider, if such disclosure is necessary to deliver professional service or provide support services to this firm.
Independent Contractor
When providing services to your company, I will be functioning as an independent contractor and in no event will I be an officer of you, nor will my relationship be that of joint venturer, partner, employer and employee, principal and agent, or any similar relationship giving rise to a fiduciary duty to you.
Record Retention and Ownership
I will return all of your original records and documents provided to me at the conclusion of the engagement. Your records are the primary records for your operations and comprise the backup and support for your work product. My copies of your records and documents are not a substitute for your own records and do not mitigate your record retention obligations under any applicable laws or regulations.
Workpapers and other documents created by me are my property and will remain in my control. Copies are not to be distributed without your written request and my prior written consent. My workpapers will be maintained in accordance with the firm’s record retention policy and any applicable legal and regulatory requirements.
My firm destroys workpaper files after a period of four years with year one being the year in which the tax return is due. Catastrophic events or physical deterioration may result in damage to or destruction of our firm’s records, causing the records to be unavailable before the expiration of the retention period as stated in our record retention policy.
Working Paper Access Requests by Regulators and Others
State, federal and foreign regulators may request access to or copies of certain workpapers pursuant to applicable legal or regulatory requirements. Requests also may arise with respect to peer review, an ethics investigation, or the sale of our accounting practice. If requested, access to such workpapers will be provided under the supervision of firm personnel. Regulators may request copies of selected workpapers to distribute the copies or information contained therein to others, including other governmental agencies.
If I receive a request for copies of selected workpapers, provided that I am not prohibited from doing so by applicable laws or regulations, I agree to inform you of such request as soon as practicable. You may, within the time permitted for my firm to respond to any request, initiate such legal action as you deem appropriate, at your sole expense, to attempt to limit the disclosure of information. If you take no action within the time permitted for me to respond, or if your action does not result in a judicial order protecting me from supplying requested information, I may construe your inaction or failure as consent to comply with the request.
If I am not a party to the proceeding in which the information is sought, you agree to reimburse me for my professional time and expenses, as well as the fees and expenses of my legal counsel, incurred in responding to such requests. This paragraph will survive termination of this Agreement.
Summons or Subpoenas
All information you provide to me in connection with this engagement will be maintained by me on a strictly confidential basis.
If I receive a summons or subpoena which our legal counsel determines requires me to produce documents from this engagement or testify about this engagement, provided that I am not prohibited from doing so by applicable laws or regulations, I agree to inform you of such summons or subpoena as soon as practicable. You may, within the time permitted for my firm to respond to any request, initiate such legal action as you deem appropriate, at your sole expense, to attempt to limit discovery. If you take no action within the time permitted for me to respond, or if your action does not result in a judicial order protecting me from supplying requested information, I may construe your inaction or failure as consent to comply with the request.
If I am not a party to the proceeding in which the information is sought, you agree to reimburse me for my professional time and expenses, as well as the fees and expenses of my legal counsel, incurred in responding to such requests. This paragraph will survive termination of this Agreement.
Disclaimer of Legal and Investment Advice
My services under this Agreement do not constitute legal or investment advice unless specifically agreed to in the Engagement Objective and Scope section of this Agreement. I recommend that you retain legal counsel and investment advisors to provide such advice.
Referrals
In the course of providing services to you, you may request referrals to attorneys, brokers, investment advisors or other professionals. I may identify a professional or professionals for your consideration. However, you are responsible for evaluating, selecting, and retaining any professional and determining if the professional can meet your needs. You agree that I have no responsibility for and will not oversee the activities of any professional to whom I refer you.
Brokerage or Investment Advisory Statements
If you provide our firm with copies of brokerage (or investment advisory) statements and/or read-only access to your accounts, I will use the information solely for the purpose described in the Engagement Objective and Scope section of the engagement letter. I will rely on the accuracy of the information provided in the statements and will not undertake any action to verify this information. I will not monitor transactions, investment activity, provide investment advice, or supervise the actions of the entity or individuals entering into transactions or investment activities on your behalf. I recommend that you receive and carefully review all statements upon receipt, and direct any questions regarding account activity to your banker, broker or investment advisor.
Other Income, Losses and Expenses
If you realized income, loss or expense from a business or supplemental income or loss, the reporting requirements of federal and state income tax authorities apply to such income, loss or expense. You are responsible for complying with all applicable laws and regulations pertaining to such operations, including the classification of workers as employees or independent contractors and related payroll tax and withholding requirements.
Accountant – Client Privilege
Internal Revenue Code §7525, Confidentiality Privileges Related to Taxpayer Communication, provides a limited confidentiality privilege applying to tax advice embodied in taxpayer communications with federally authorized tax practitioners in certain limited situations.
This privilege is limited in several important respects. For example, this privilege does not apply to your records, which you are required to retain in support of your tax return. In addition, the privilege does not apply to state tax issues, state tax proceedings, private civil litigation proceedings, or criminal proceedings.
While I will cooperate with you with respect to the privilege, asserting the privilege is your responsibility. Inadvertent disclosure of otherwise privileged information may result in a waiver of the privilege. Please contact me immediately if you have any questions or need further information about this CPA-client privilege.
Limitations on Oral and Email Communications
I may discuss with you my views regarding the treatment of certain items or decisions you may encounter. I may also provide you with information in an email. Any advice or information delivered orally or in an email (rather than through a memorandum delivered as an email attachment) will be based upon limited research and a limited discussion and analysis of the underlying facts. Additional research or a more complete review of the facts may affect my analysis and conclusions.
Due to these limitations and the related risks, it may or may not be appropriate to proceed with any decision solely on the basis of any oral or email communication. You accept all responsibility, except to the extent caused by our gross negligence or willful misconduct, for any loss, cost or expense resulting from your decision (i) not to have me perform the research and analysis necessary to reach a more definitive conclusion and (ii) to instead rely on an oral or email communication. The limitation in this paragraph will not apply to an item of written advice that is a deliverable of a separate engagement. If you wish to engage me to provide formal advice on a matter on which we have communicated orally or by email, I will confirm this service in a separate engagement letter.
Management Responsibilities
While Maura A. Halkiotis, CPA can provide assistance and recommendations, you are responsible for management decisions and functions, and for designating an individual with suitable skill, knowledge and experience to oversee any services that Maura A. Halkiotis, CPA provides. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. You are ultimately responsible for establishing and maintaining internal controls, including monitoring ongoing activities.
Conflicts of Interest
If I, in my sole discretion, believe a conflict has arisen affecting my ability to deliver services to you in accordance with either the ethical standards of my firm or the ethical standards of my profession, I may be required to suspend or terminate our services without issuing our work product. You agree that I will not be responsible for your failure to meet governmental and other deadlines, for any penalties or interest that may be assessed against you resulting from your failure to meet such deadlines, and for any other damages (including but not limited to consequential, indirect, lost profits, or punitive damages) incurred as a result of the suspension or termination of our services.
Mediation
If a dispute arises out of or relates to the Agreement including the scope of services contained herein, or the breach thereof, and if the dispute cannot be settled through negotiation, the parties agree first to try to settle the dispute by mediation administered by the American Arbitration Association (“AAA”) under the AAA Professional Accounting and Related Services Dispute Resolution Rules before resorting to arbitration, litigation, or some other dispute resolution procedure. The mediator will be selected by the mutual agreement of the parties. If the parties cannot agree on a mediator, a mediator shall be designated by the AAA. The mediation will be conducted in Maine.
The mediation will be treated as a settlement discussion and, therefore, all conversations during the mediation will be confidential. The mediator may not testify for either party in any later proceeding related to the dispute. No recording or transcript shall be made of the mediation proceedings. The costs of any mediation proceedings shall be shared equally by all parties. Any costs for legal representation shall be borne by the hiring party.
Proprietary Information
You acknowledge that proprietary information, documents, materials, management techniques and other intellectual property are a material source of the services I perform and were developed prior to my association with you. Any new forms, software, documents or intellectual property I develop during this engagement for your use shall belong to me, and you shall have the limited right to use them solely within your business. All reports, templates, manuals, forms, checklists, questionnaires, letters, agreements and other documents which I make available to you are confidential and proprietary to us. Neither you, nor any of your agents, will copy, electronically store, reproduce or make available to anyone other than your personnel, any such documents. This provision will apply to all materials whether in digital, “hard copy” format or other medium.
Statute of Limitations
You agree that any claim arising out of this Agreement shall be commenced within one (1) year of the delivery of the work product to you, regardless of any longer period of time for commencing such claim as may be set by law. A claim is understood to be a demand for money or services, the service of a suit, or the institution of arbitration proceedings against Maura A. Halkiotis, CPA.
Termination and Withdrawal
I reserve the right to withdraw from the engagement without completing services for any reason, including, but not limited to, your failure to comply with the terms of this Agreement or as we determine professional standards require.
If this Agreement is terminated before services are completed, you agree to compensate me for the services performed and expenses incurred through the effective date of termination.
Assignment
All parties acknowledge and agree that the terms and conditions of this Agreement shall be binding upon and inure to the parties’ successors and assigns, subject to applicable laws and regulations.
Severability
If any portion of this Agreement is deemed invalid or unenforceable, said finding shall not operate to invalidate the remainder of the terms set forth in this Agreement.
Entire Agreement
The engagement letter, including this Terms and Conditions Addendum and any other attachments, encompasses the entire agreement of the parties and supersedes all previous understandings and agreements between the parties, whether oral or written. Any modification to the terms of this Agreement must be made in writing and signed by both parties.
Maura A. Halkiotis CPA 