In accordance with our understanding of this engagement, AGS Tax Solutions will prepare the following returns for you:

2024 individual federal and state income tax returns; and if necessary, related forms such as extension of time to file requests and subsequent year’s estimates. We will advise you on income tax matters as to which you specifically request our advice in writing.

We are responsible for preparing only the returns listed above or confirmed in writing by us. Also, we may render such accounting and bookkeeping assistance as determined to be necessary solely for the preparation of your income tax returns.

We will not audit or verify the data you submit, although we may ask you to clarify it or furnish us with additional data. We are not engaged to audit, review or compile financial statements from the information provided to us. Our work does not include any procedures designed to discover fraud, defalcations or other irregularities should any exist. You are ultimately responsible for the proper recording of transactions in the books of accounts, for the safeguarding of assets, and for the substantial accuracy of the financial records.

Our services in connection with this engagement are not designed to address legal or regulatory aspects of your compliance with the Affordable Care Act. In preparing your individual tax returns, we will rely solely on the information you provide us regarding the ACA mandates and you agree to accept full responsibility for the accuracy and completeness of this information, as well as your compliance with the ACA. As such, we will not be responsible for any taxes, penalties, or interest that may be addressed.

As your CPA, we are required to keep all information about our engagement confidential; so, we will not disclose any information about you to any third party unless we have your approval in writing or are required/permitted by law to do so. This policy applies even if you are no longer a client.

We will use our professional judgment in preparing your returns. Given the magnitude of the economic tax relief provisions the U.S. stimulus packages have contained, as well as some new concepts introduced in the law, additional stated guidance from the Internal Revenue Service, and possibly from Congress in the form of technical corrections on certain income tax provisions may be forthcoming. We will use our professional judgment and expertise to assist you given the guidance as currently promulgated at the time our services are rendered. Subsequent developments issued by the applicable tax authorities may affect the information we have previously provided, and these effects may be material. Whenever we are aware that a possibly applicable tax law is unclear or that there are conflicting interpretations of the law by authorities (e.g., tax agencies and courts), we will share our knowledge and understanding of the possible positions that may be taken on your return. In accordance with our professional standards, we will follow whatever position you request, as long as it is consistent with the codes, regulations, and interpretations that have been promulgated.

It is your responsibility to submit your tax information to us as early as possible. If you have not submitted all the information necessary to complete your returns thirty (30) business days prior to your filing deadline, we may request an extension of time to file the returns. By your signature below, you hereby agree that we may submit an extension of time to file on your behalf unless you advise us in writing not to do so at least ten days in advance of the initial filing date.

It is your responsibility to provide us with all the information required for preparing complete and accurate returns including, but not limited to, the auto, travel, entertainment, and related expenses and the required documents to support charitable contributions over $250. You should retain all the documents, canceled checks, and other data that form the basis of your income and deductions. The documents may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You agree that you have the proper records to substantiate all items of income and deductions, including travel and entertainment expenses. You have the final responsibility for the income tax returns and, therefore, you should review them carefully before you sign them. In addition, you are responsible for providing us with all information necessary to identify (i) all states and foreign countries in which you “do business” or derive income and (ii)the extent of business operations in each relevant state and/or country. If you have any questions as to the type of records required, please ask us for advice in that regard. It is also your responsibility to carefully examine and approve your completed tax returns before signing and mailing them to the tax authorities. We are not responsible for the disallowance of doubtful deductions or inadequately supported documentation, nor for resulting taxes, penalties, and interest.

Please note that the Internal Revenue Service (IRS) considers virtual currency (e.g., Bitcoin) as property for U.S. federal tax purposes. As such, any transactions in, or transactions that use, virtual currency are subject to the same general tax principles that apply to other property transactions. If you had virtual currency activity during the 2024 tax year, you may be subject to tax consequences associated with such transactions and may have additional foreign reporting obligations. You agree to provide us with complete and accurate information regarding any transactions in, or transactions that have used, virtual currency during the applicable tax year. Please ask us for advice if you have any questions regarding the type of records required for virtual currency transactions.

Please note that any person or entity subject to the jurisdiction of the United States (includes individuals, corporations, partnerships, trusts, and estates) having a financial interest in, or signature or other authority over, bank accounts, securities, or other financial accounts in a foreign country having an aggregate value exceeding $10,000 at any time during the calendar year, shall report such a relationship. Although there are some limited exceptions, filing requirements also apply to taxpayers that have direct or indirect control over a foreign or domestic entity with foreign financial accounts, even if the taxpayer does not have foreign account(s). For example, a corporate-owned foreign account would require filings by the corporation and by the individual corporate officers with signature authority. Failure to disclose the required information to the U.S. Department of the Treasury may result in substantial civil and/or criminal penalties.

If you and/or your entity have a financial interest in, or signature authority over, any foreign accounts, you are responsible for providing our firm with all the information necessary to prepare the Report of Foreign Bank and Financial Accounts (FBAR) required by the U.S. Department of the Treasury in order for the FBAR to be received by the Department on or before the due date. The filing deadline for the Report of Foreign Bank and Financial Accounts (FBAR) required by the U.S. Department of the Treasury is April 15th and follows the federal income tax due date guidance. If you would like our firm to submit your electronic FBAR report (FinCEN Form 114) on your behalf, we must receive a signed consent form (FinCEN Form 114a) from you prior to submitting the foreign reporting form. If you do not provide our firm with information regarding any interest you may have in a foreign account, or if we do not timely receive your signed authorization to file your foreign reporting form, we will not be able to prepare and file any of the required disclosure statements. We assume no liability for late filed or unfiled FBAR reports.

The law provides for a penalty to be imposed where a taxpayer makes a substantial understatement of their tax liability. For individual taxpayers, a substantial understatement exists when the understatement for the year exceeds the greater of ten (10) percent of the tax required to be shown on the return or $5,000. The penalty is of twenty (20) percent of the tax underpayment. Taxpayers may seek to avoid all or part of the penalty by showing (1) that they acted in good faith and there was reasonable cause for the understatement based on substantial authority, (2) that the understatement was based on substantial authority, or (3) there was a reasonable basis for the position taken on the return and that the relevant facts affecting the item’s tax treatment were adequately disclosed on the return. You agree to advise us if you wish disclosure to be made in your returns or if you desire us to identify or perform further research with respect to any material tax issues for the purpose of ascertaining whether, in our opinion, there is “substantial authority” for the position proposed to be taken on such issue in your returns.

Your returns may be selected for review by taxing authorities. In the event of an examination or other Internal Revenue Service contact, we are available to represent you. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examinations, we will be available upon request to represent you and will render additional invoices for the time and expenses incurred. Terms and conditions including our fees for these additional services will be communicated in a separate engagement letter.

Unless you object in advance or your tax return does not qualify, we will prepare your returns for filing electronically with the Internal Revenue Service and any related states. According to the Internal Revenue Service estimates taxpayers may receive refunds three (3) to four (4) weeks sooner by filing electronically. You must review and sign the return before it can be transmitted. Once the return is accepted by the Internal Revenue Service, we are not responsible for the length of time it takes the Internal Revenue Service to process your return.

Please note that although e-filing will require both you and our firm to complete additional steps, the same filing deadlines will apply. You must therefore ensure that you complete the additional requirements well before the due dates in order for our firm to be able to timely transmit your returns. We will provide you with a copy of the income tax returns for your review prior to electronic transmission. After you have reviewed the returns, you must provide us with a signed authorization indicating that you have reviewed the return and that, to the best of your knowledge, you feel it is correct. We cannot transmit the returns to the taxing authorities until we have the signed authorization. Therefore, if you have not provided our firm with your signed authorization on or before the tax filing deadline, we may place your return on extension, even though it might already have been completed. In that event, you will be responsible for ensuring that any payment due with the extension is timely sent to the appropriate taxing authorities. You will also be responsible for any additional costs our firm incurs arising from the extension preparation. Accordingly, it is of the utmost importance that you provide us with your complete and accurate tax information as soon as possible to ensure successful electronic transmission.

In our relationship, we are often advisors, not advocates, with regard to investment advice. We will advise you on the tax implications, if any, of specific matters you bring to our attention. From time to time during our relationship, you may seek our advice with regard to potential investments. We are not investment advisors. Accordingly, we suggest that you seek the advice of qualified investment advisors appropriate to each investment being considered. Unless otherwise specifically agreed to in a separate engagement letter or in a written addendum or amendment to this engagement letter signed by the parties, we will not advise you regarding the economic viability or consequences of an investment or whether you should or should not make a particular investment.

In connection with this engagement, we may communicate with you or others via email transmission. We take reasonable measures to secure your confidential information in our email transmissions. However, as emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered to and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure or communication of email transmissions, or for the unauthorized use or failed delivery of emails transmitted by us in connection with the performance of this engagement.

It is our policy to keep records related to this engagement for seven (7) years. Upon the expiration of the seventh year period, you agree that we shall be free to destroy our work papers. However, AGS Tax Solutions does not keep any original client records, so we will return those to you at the completion of the services rendered under this engagement. It is your responsibility to retain and protect your records (which includes any work product we provide to you as well as any records that we return) for possible future use, including potential examination by any government or regulatory agencies. AGS Tax Solutions does not accept responsibility for hosting client information; therefore, you have the sole responsibility for ensuring you retain and maintain in your possession all your financial and non-financial information, data and records.

If requested, we will provide you with an estimate of our fees and other client costs. Our estimate is not a guarantee of our actual fee, which may be more or less than our estimate. If our engagement is a fixed fee arrangement, our fees will be limited to the agreed amount. However, if we encounter unusual circumstances that would require us to expand the scope of the engagement, we will discuss any additional fees with you before doing the additional work. If your returns need to be extended, we may issue progress bills for the work completed.

In addition, in the event our firm or any of its employees or agents is called as a witness or requested to provide any information whether oral, written, or electronic in any judicial, quasi-judicial, or administrative hearing or trial regarding information or communications that you have provided to this firm, or any documents and workpapers prepared by AGS Tax Solutions in accordance with the terms of this agreement, you agree to pay any and all reasonable expenses, including fees and costs for our time at the rates then in effect, as well as any legal or other fees that we incur as a result of such appearance or production of documents.

If your account becomes delinquent, we have collection procedures which we will follow to obtain payment. This may include assignment of your account to a collection agency or referral of the matter to our legal counsel.

If any dispute arises among the parties hereto, the parties agree to first try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes or other arbitration organization if agreed on between the parties before resorting to litigation. The costs of any mediation proceeding shall be shared equally by all parties.

Client and accountant both agree that any dispute over fees charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association. Such arbitration shall be binding and final. The arbitration shall take place in San Diego, California. Any award rendered by the Arbitrator pursuant to this Agreement may be filed and entered and shall be enforceable in the Superior Court of the County in which the arbitration proceeds. IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT IN THE EVENT OF A DISPUTE OVER FEES CHARGED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION.

Please indicate your acceptance of the above by signing below. If your needs change during the year, the nature of our services can be adjusted appropriately. Likewise, if you have special projects with which we can assist, please let us know.

We are pleased to have you as a client and look forward to a long and mutually satisfying relationship.

Sincerely,

AGS Tax Solutions