Common use of Reliance on Others Clause in Contracts

Reliance on Others. If you wish to take a tax position based upon the advice of another tax advisor, you agree to obtain a written statement from the advisor confirming that the position should meet the “substantial authority,” or “more likely than not” standard, as applicable. In preparing your federal tax return, we are subject to a diligence as to accuracy regarding reliance on others standard, as defined in revisions to Circular 230, §10.22(b). To the extent a position is based upon the advice of another tax advisor, prior to preparing or signing the tax return, the AICPA SSTS No. 1 also requires our firm to have a good faith belief that the position has, at a minimum, a realistic possibility of being sustained administratively or judicially on its merits, if challenged. Additional charges will apply to such research. Substantial Understatement Penalties The IRS and many states impose penalties for substantial understatement of tax. To avoid the substantial understatement penalty, you must have substantial authority to support the tax treatment of the item challenged by the IRS or adequate disclosure of the item. To fulfill the adequate disclosure requirement, you may be required to attach to your tax return a completed IRS Form 8275, Disclosure Statement, or 8275-R, Regulation Disclosure Statement, which discloses all relevant facts. A disclosed tax position that meets the reasonable basis standard must have some authority supporting the position and be more than simply arguable. You agree to advise us if you wish to disclose a tax treatment on your return. If you request our assistance in identifying or performing further research to ascertain if there is “substantial authority” for the proposed position to be taken on the tax item(s) in your returns, we will confirm this representation in a separate engagement letter. It is your responsibility to contact us if additional assistance is required. If we conclude as a result of our research that you are required to disclose a transaction on your tax return, you consent to attach a completed Form 8275 or 8275-R to your tax return for filing after we discuss the situation with you. You also agree to hold our firm harmless from any and all actual and consequential damages (including but not limited to tax, penalties, interest, and professional fees) you incur as a result of including such disclosures with your filed tax return regardless of the nature of the claim, including the negligence of any party. Unless an undisclosed tax position meets the “substantial authority” or "more likely than not" standard, as applicable, we will be unable to prepare the return and will withdraw from the engagement.

Reliance on Others. If you wish to take a tax position based upon the advice of another tax advisor, you agree to obtain a written statement from the advisor confirming that the position should meet the “substantial authority,” or “more likely than not” standard, as applicable. In preparing your federal tax return, we are subject to a diligence as to accuracy regarding reliance on others standard, as defined in revisions to Circular 230, §10.22(b10.37(b). To the extent a position is based upon the advice of another tax advisor, prior to preparing or signing the tax return, the AICPA SSTS No. 1 also requires our firm to have a good faith belief that the position has, at a minimum, a realistic possibility of being sustained administratively or judicially on its merits, if challenged. Additional charges will apply to such research. Substantial Understatement Penalties The IRS and many states impose penalties for substantial understatement of tax. To avoid the substantial understatement penalty, you must have substantial authority to support the tax treatment of the item challenged by the IRS or adequate disclosure of the item. To fulfill the adequate disclosure requirement, you may be required to attach to your tax return a completed IRS Form 8275, Disclosure Statement, or 8275-R, Regulation Disclosure Statement, which discloses all relevant facts. A disclosed tax position that meets the reasonable basis standard must have some authority supporting the position and be more than simply arguable. You agree to advise us if you wish to disclose a tax treatment on your return. If you request our assistance in identifying or performing further research to ascertain if there is “substantial authority” for the proposed position to be taken on the tax item(s) in your returns, we will confirm this representation in a separate engagement letter. It is your responsibility to contact us if additional assistance is required. If we conclude as a result of our research that you are required to disclose a transaction on your tax return, you consent to attach a completed Form 8275 or 8275-R to your tax return for filing after we discuss the situation with you. You also agree to hold our firm harmless from any and all actual and consequential damages (including but not limited to tax, penalties, interest, and professional fees) you incur as a result of including such disclosures with your filed tax return regardless of the nature of the claim, including the negligence of any party. Unless an undisclosed tax position meets the “substantial authority” or "more likely than not" standard, as applicable, we will be unable to prepare the return and will withdraw from the engagement.

Reliance on Others. If you wish to take a tax position based upon the advice of another tax advisor, you agree to obtain a written statement from the advisor confirming that we must comply with Circular 230, §10.37(b) and AICPA SSTS No. 1 and related Interpretations 1-1 and 1-2, which requires the position should to meet the “realistic possibility,” “substantial authority,” or “more likely than not” standard, as applicable. In preparing your federal tax return, we are subject You agree to obtain a diligence as to accuracy regarding reliance on others standard, as defined in revisions to Circular 230, §10.22(b). To written statement from the extent a position is based upon advisor confirming the advice of another tax advisor, prior to preparing or signing the tax return, the AICPA SSTS No. 1 also requires our firm to have a good faith belief standard that should apply so the position hasmay be properly disclosed. If additional research or disclosure is required, at a minimum, a realistic possibility of being sustained administratively you agree to pay for the additional charges necessary to complete the disclosure or judicially on its merits, if challenged. Additional charges will apply to such research. Substantial Understatement Penalties understatement penalties The IRS and many states impose penalties for substantial understatement of tax. To avoid the substantial understatement penalty, you must have substantial authority to support the tax treatment of the item challenged by the IRS or have an adequate disclosure of the item. To fulfill the adequate disclosure requirement, you may be required to attach to your tax return a completed IRS Form 8275, Disclosure Statement, or Form 8275-R, Regulation Disclosure Statement, which discloses all relevant facts. A disclosed tax position that meets the reasonable basis standard must have some authority supporting the position and be more than simply arguable. You agree to advise us if you wish to disclose a tax treatment on your return. If you request our assistance in identifying or performing further research to ascertain if there is “substantial authority” authority for the proposed position to be taken on the tax item(s) in your returns, and we agree to perform the research, we will confirm this representation engagement in a separate engagement letteragreement. It is your responsibility to contact us if additional assistance is required. If we conclude as a result of our research that you are required to disclose a transaction on your tax return, you consent to attach a completed Form 8275 or Form 8275-R to your tax return for filing after we discuss the situation matter with you. You also agree to hold our firm harmless If the IRS, state or local tax authorities later contest the position taken, additional tax, penalties, and interest may be assessed. We assume no liability, and you hereby release us from any and all actual and consequential damages (liability arising from such contest, including but not limited to to, additional tax, penalties, interest, and related professional feesfees for the position taken. Tax return preparer standards, reportable transactions and tax shelters Pursuant to the standards prescribed in Circular 230 and IRC §6694, we, as tax return preparers, are prohibited from signing a tax return unless we have a reasonable belief that there is substantial authority for a tax position taken on the tax return or we have a reasonable basis for the tax return position taken in the return and we disclose this tax position in a separate attachment to the tax return. The law imposes substantial penalties on taxpayers and tax advisors for failure to disclose listed and other reportable transactions on Form 8886, Reportable Transaction Disclosure Statement. In general, reportable transactions are potentially abusive transactions identified by the IRS that have a primary purpose of tax avoidance, including but not limited to listed transactions, confidential transactions, transactions with contractual protection, loss transactions, and transactions of interest (a definition of “reportable transactions” is located at xxxxx://xxx.xxx.xxx/instructions/i8886 and includes a link to a summary of listed transactions). The law imposes substantial penalties on taxpayers and tax advisors for failure to disclose tax shelters on Form 8271, Investor Reporting of a Tax Shelter Registration Number. A tax shelter is defined in IRC §6662(d)(2)(C) you incur as a result partnership or other entity, investment plan or arrangement, or any other plan or arrangement if a significant purpose of including such disclosures with your filed tax return regardless partnership, entity, plan or arrangement is the avoidance or evasion of the nature of the claim, including the negligence federal income tax. You agree to advise us of any partytax shelters and/or reportable transactions identified in tax reference materials. Unless an undisclosed tax position meets the “substantial authority” or "a reportable transaction is more likely than not" standardnot to be sustained on its merits, as applicableIRC §6662A, Imposition of Accuracy-Related Penalty on Understatements with Respect to Reportable Transactions, requires us to disclose the reportable transaction in a separate attachment to the tax return. Similarly, unless a tax shelter is more likely than not to be sustained on its merits, IRC §6662(d)(2)(C)(ii), Imposition of Accuracy-Related Penalty on Underpayments, requires us to disclose tax shelters in a separate attachment to the tax return. If you do not consent to a required disclosure, we will may be unable to prepare your tax returns. You agree to hold our firm harmless with respect to any liability including but not limited to, additional tax, penalties, interest and professional fees resulting from your failure to timely notify us, in writing, of any tax shelters and/or reportable transactions identified in tax reference materials in order to facilitate the return timely preparation and will withdraw from the engagementfiling of your tax returns.

Reliance on Others. If you wish to take a tax position based upon the advice of another tax advisor, you agree to obtain a written statement from the advisor confirming that the position should meet the “realistic possibility,” “substantial authority,” or “more likely than not” standard, as applicable. In preparing your federal tax return, we are subject to a diligence as to accuracy regarding reliance on others standard, as defined in revisions to Circular 230, §10.22(bSection 10.37(b). To the extent that a position is based upon the advice of another tax advisor, prior to preparing or signing the tax returnreturns, the AICPA SSTS No. 1 we are also requires our firm required to have a good faith belief that the position has, at a minimum, a “realistic possibility possibility” of being sustained administratively or judicially on its merits, if challenged. Additional charges will apply to such research. Substantial Understatement Penalties understatement penalties The IRS and many states impose penalties for substantial understatement of tax. To avoid the substantial understatement penalty, you must have substantial authority to support the tax treatment of the item challenged by the IRS or adequate disclosure of the item. To fulfill the adequate disclosure requirement, you may be required to attach to your tax return returns a completed IRS Form 8275, Disclosure Statement, or 8275-R, Regulation Disclosure Statement, which discloses all relevant facts. A disclosed tax position that meets the reasonable basis standard must have some authority supporting the position and be more than simply arguable. You agree to advise us if you wish to disclose a tax treatment on your returnreturns. If you request our assistance in identifying or performing further research to ascertain if there is “substantial authority” authority for the proposed position to be taken on the tax item(s) in your returns, we will confirm this representation in a separate engagement letter. It is your responsibility to contact us if additional assistance is required. If we conclude as a result of our research that you are required to disclose a transaction on your tax returnreturns, you consent to attach a completed Form 8275 or 8275-R to your tax return returns for filing after we discuss the situation with you. You also agree to hold our firm harmless from any and all actual and consequential damages (including but not limited to tax, penalties, interest, and professional fees) you incur as a result of including such disclosures disclosure with your filed tax return returns regardless of the nature of the claim, including the negligence of any party. Unless an undisclosed tax position meets the “has substantial authority” or "more likely than not" standard, as applicable, we will be unable to prepare the return returns and will withdraw from the engagement. Listed transactions and other reportable transactions The law imposes substantial penalties (as much as $100,000) on taxpayers and tax advisors for failure to disclose listed and other reportable transactions on Form 8886, Reportable Transactions Disclosure Statement. In general, reportable transactions are potentially abusive transactions identified by the IRS whose primary purpose is tax avoidance, including but not limited to listed transactions, confidential transactions, transactions with contractual protection, loss transactions, and transactions of interest. You agree to advise us of any reportable transactions identified under tax laws and regulations. You agree that it is solely your decision to disclose any reportable transactions in the returns we prepare. You acknowledge your responsibility to inform us of any listed transactions or reportable transactions as designated by the IRS. You agree to hold our firm harmless with respect to any liability including but not limed to, additional tax, penalties, interest and professional fees resulting from failure to timely notify us, in writing, of all such transactions in order to facilitate the timely preparation of your tax returns. We will insist that all listed and reportable transactions that we become aware of are properly disclosed in your tax returns. If you have questions or concerns about listed and reportable transactions or related penalties, please let us know. Tax shelters Section 506 of The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 requires our firm, as tax preparers, to conform to a higher standard than the taxpayer when an undisclosed tax position is related to a tax shelter as defined in IRC Section 6662(d)(2)(C)(ii), Imposition of Accuracy-Related Penalty on Understatements, or a reportable transaction to which IRC Section 6662A, Imposition of Accuracy-Related Penalty on Understatements with Respect to a Reportable Transaction, applies. This higher standard requires the preparer to have a reasonable belief that the undisclosed tax position would more likely than not be sustained on its merits if challenged by the IRS, and that there is a reasonable basis for the tax treatment. We may have to spend additional time preparing your return due to research and analysis necessary to meet this standard. Accordingly, by executing this Agreement, you acknowledge that you are aware of this difference in standards, and consent to our preparation of your tax returns in accordance with the standards applicable to our firm as tax preparers.