CryptoTaxAudit will provide Audit Defense services for any income tax return during the Membership Period in return for the applicable annual membership fee, initial phone consultation fee, and compliance with all applicable terms of this agreement (the “Audit Defense Plan”).
CryptoTaxAudit may provide Custom Tax Defense services for services outside the scope of Audit Defense. These services are provided on a reasonable-effort basis, performed in a workmanlike manner, and invoiced separately.
CryptoTaxAudit will automatically bill you for the annual membership renewal to keep your coverage from lapsing unless you cancel or fail to pay the renewal.
CLARIFICATION OF TERMS
In this agreement, “you” and “your” refer to the member(s) shown on the membership certificate. “We,” “us,” and “CryptoTaxAudit” refer to Donnelly Tax Law, the company providing audit defense services. “IRS” refers to the Internal Revenue Service, and “State” refers to your state or local income tax authority.
- Audit: Audit means any communication initiated by the IRS or State income tax agency that wishes to audit, examine, review, investigate or verify any item or items on the IRS income tax forms (or State equivalent) or on anti-money laundering information forms (FinCEN-114 (FBAR) or Form 8938).
- Audit Defense: Audit Defense means that CryptoTaxAudit will represent you through the completion of any Audit pertaining to the treatment of cryptocurrency during the Membership Period. We must be notified of the Audit during the Membership Period. The initial Audit letter from the IRS or State authority must be dated during the Membership Period.
This Audit Defense plan is also subject to the limitations and exclusions listed in the membership confirmation email and this agreement.
Audit Defense also includes:
- Handling all communications, including letters or telephone calls with the IRS or State regarding the Audit.
- Assigning a Case Manager to manage your case.
- Developing a strategy with you and then corresponding with the IRS or State on your behalf.
- Negotiating with the IRS or State through Appeals and pre-litigation Appeals review prior to trial in Tax Court.
- No settlement will be reached with the IRS or State without your final approval and consent.
Your name, address, and any other personal information will not be disclosed or sold to any persons or firms outside of the tax authorities. Only CryptoTaxAudit’s staff will have access to your tax information.
We may use your name and email to contact you about Membership benefits and changes to terms.
Audit Defense – CryptoTaxAudit will professionally defend a covered federal or state income tax audit or notice from the time of the first notice to its completion, subject to the Audit Defense Plan Limitations and Exclusions described below. All scheduling of appointments, telephone calls and correspondence will be handled by the assigned Case Manager. We will correspond with the auditor on your behalf and will defend you through the highest level of appeals, subject to the terms herein. We will conduct tax research into matters of tax controversy.
Our Responsibility: We are responsible to provide you with a professional Audit Defense service.
Your Responsibility: Upon receipt of any communication from the IRS or State, you are responsible to perform or provide the following:
- Promptly schedule a call with CryptoTaxAudit! Do not contact the IRS or State. To ensure effective service regarding your Audit, you must use your assigned CryptoTaxAudit Audit Representative(s) as your only contact with the IRS or State. If you do not contact CryptoTaxAudit within 15 days of the date of the first notice, additional charges may apply. If you wait too long, you will reduce our ability to defend your case.
- Provide your signature(s) on the required IRS or State Power of Attorney and return to the Case Manager as soon as possible. Without this we cannot communicate with the IRS or State on your behalf. This document may not be altered in any way.
- Provide in a timely manner the information and documentation necessary to substantiate the various items of income and expense in question. This also includes summarizing the information into a meaningful format for submission to the tax authorities. Providing requested information promptly is considered helpful in getting better audit results. Documentation must be provided in electronic format.
- Prepare any return forms requested by the authorities.
- We ask that you comply with the Audit procedure and strategy actions recommended by CryptoTaxAudit and any of the Case Manager working on your behalf. If you are unable to maintain this commitment, CryptoTaxAudit cannot be responsible for the outcome of your Audit and reserves the right to cease providing service where reasonably warranted.
AUDIT DEFENSE PLAN LIMITATIONS
CryptoTaxAudit is dedicated solely to legitimately protecting the rights and assets of our members in the event of an Audit. The following defines our service limitations:
- CryptoTaxAudit does not represent our members in Federal or State Court, including Tax Court.
- CryptoTaxAudit does not provide legal assistance in defending issues of civil or criminal fraud, whether actual or alleged.
- CryptoTaxAudit can file or amend our members’ Federal, State or Local income tax returns for an additional fee.
- CryptoTaxAudit will not reconcile checkbooks, reconcile crypto transaction records, organize or summarizing other records, or do record-keeping or bookkeeping for our members. We may be able to offer these services on an additional fee.
- CryptoTaxAudit does not provide assistance for collection notices when we did not defend the Audit. If you have a collection notice from the IRS or State, it is not considered an Audit and is not covered by your CryptoTaxAudit Audit Defense Membership. We do provide this service for an additional charge.
- CryptoTaxAudit is not responsible for the extra work and costs involved if you report your Audit late or you do not cooperate by providing the documentation in a timely manner which results in the auditing agency issuing a Notice of Deficiency (NOD) or the state equivalent. If this occurs, CryptoTaxAudit will pass these costs onto the member in the form of a late fee or hourly fee.
- CrpytoTaxAudit is not responsible to pay any taxes, interest, penalties or fines assessed against you.
AUDIT DEFENSE PLAN EXCLUSIONS
Certain Audits, tax returns, and issues of audit may be excluded from the Audit Defense Plan for any of the following reasons:
- Pre-existing Conditions: If the date of the initial notice of audit from the IRS or State is outside the Membership Period, Audit Defense services for that audit are excluded. If prior notices of the same audit were issued before the Acceptance Date of the Agreement, Audit Defense Services for that audit are excluded.
- Large Businesses: Business entities with gross receipts exceeding $5 million or 10 partners/stockholders /beneficiaries/members are not eligible for membership.
- Ownership Interest in Other Tax Entities: If you have an ownership interest in a Corporation, Partnership, LLC, LLP, Trust, Estate, or Tax Shelter that has been contacted for an Audit and is not a CryptoTaxAudit member, Audit Defense services for that tax entity are excluded.
- Tax Protestors: CryptoTaxAudit will exclude anyone protesting the taxing of income on economic, religious, legal or constitutional grounds, or other frivolous claims.
- Criminal Investigation (CI): If you are currently under investigation by CI, you are excluded from Audit Defense services. For any Audit that CryptoTaxAudit is defending in which CI enters the Audit, CryptoTaxAudit will cease working that Audit and will exclude the member from further Audit Defense services until completion of the CI investigation. When the CI investigation is completed, CryptoTaxAudit will resume working on the Audit, if possible.
- Other Taxes: Your Audit Defense Plan is limited to the type of income tax return listed on the membership certificate. Payroll tax, sales tax, property tax, gross receipts tax, city and local tax, estate and gift tax and compliance audits of pension and profit-sharing plans are excluded from the Audit Defense Plan.
TERMINATIONS OF MEMBERSHIP AGREEMENT
CryptoTaxAudit reserves the right to terminate this Audit Defense Plan upon the breach of any material provision of this agreement by you, in the event that an Audit meets the criteria of any of the “AUDIT DEFENSE PLAN EXCLUSIONS” listed above, or in the event that a condition renders the completion of CryptoTaxAudit’s responsibilities under this agreement unreasonably difficult to fulfill. Conditions that can render completion of CryptoTaxAudit’s responsibilities unreasonably difficult include, but are not limited to, failure by you to reasonably fulfill any provision listed as “Your Responsibility” under “RESPONSIBILITIES” above, failure to cooperate during the course of the Audit process, or repeated use of abusive, inappropriate, or unprofessional language when communicating with any staff members or representatives of CryptoTaxAudit.
This Audit Defense Plan shall also be deemed to be terminated if you did not pay the renewal fee or other service invoices from us on time.
Delaware state law governs this Agreement without regard to its conflicts of laws provisions.
CryptoTaxAudit is a Service Mark owned by us.
ANY DISPUTE OR CLAIM RELATING IN ANY WAY TO THE SERVICES OR THIS AGREEMENT WILL BE RESOLVED BY BINDING ARBITRATION, RATHER THAN IN COURT, except that you may assert claims in small claims court if your claims qualify. The Federal Arbitration Act governs the interpretation and enforcement of this provision; the arbitrator shall apply Delaware law to all other matters. Notwithstanding anything to the contrary, any party to the arbitration may at any time seek injunctions or other forms of equitable relief from any court of competent jurisdiction. WE EACH AGREE THAT ANY AND ALL DISPUTES MUST BE BROUGHT IN THE PARTIES’ INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. BY ENTERING INTO THIS AGREEMENT AND AGREEING TO ARBITRATION, YOU AGREE THAT YOU AND CryptoTaxAudit ARE EACH WAIVING THE RIGHT TO FILE A LAWSUIT AND THE RIGHT TO A TRIAL BY JURY. IN ADDITION, YOU AGREE TO WAIVE THE RIGHT TO PARTICIPATE IN A CLASS ACTION OR LITIGATE ON A CLASS-WIDE BASIS. YOU AGREE THAT YOU HAVE EXPRESSLY AND KNOWINGLY WAIVED THESE RIGHTS.
To begin an arbitration proceeding, send a letter requesting arbitration and describing your claim to CryptoTaxAudit, in care of President, 12332 Sowden Rd Ste B-95616, Houston, Texas 77080. Arbitration will be conducted by the American Arbitration Association (AAA) before a single AAA arbitrator under the AAA’s rules, which are available at http://www.adr.org or by calling 1-800-778-7879. Payment of all filing, administration and arbitrator fees and costs will be governed by the AAA’s rules. You agree to have the arbitration conducted by telephone, based on written submissions. The decision of the arbitrator shall be final and not appealable, and judgment on the arbitration award may be entered in any court having jurisdiction thereof. This Section shall survive expiration, termination or rescission of this Agreement.