top of page

MASTER SERVICES AGREEMENT & ENGAGEMENT LETTER

Effective Date: August 16, 2026


Between: Drake & Co. Tax Advisory, LLC (formerly Tax Prep by Ms. Tasha), located in RTP, NC (referred to as "the Firm," "I," "my," or "us").
And: The client executing this agreement electronically (referred to as "the Client," "you," or "your").

​

1. SCOPE OF SERVICES

Tax Representation Services

The Firm will provide tax representation services before the IRS or state tax authorities regarding audits, official notices, letters, or collections matters. The scope of this representation is strictly limited to the specific tax years and specific issues outlined in your customized project proposal.

​

Income Tax Preparation

The Firm will prepare your federal and state income tax returns. I will depend entirely on you to provide the information required to prepare complete and accurate returns. While I may ask you to clarify certain items, the Firm will not audit or independently verify the data you submit. A checklist may be provided to assist you in collecting the required data and avoiding the omission of important information.

 

Bookkeeping Services

The Firm will provide bookkeeping services, including recording financial transactions and reconciling your accounts. My role is strictly to organize your financial data into meaningful reports. These services do not constitute an audit and are not designed to disclose errors, fraud, or illegal acts. However, the Firm will inform you of any material errors or irregularities discovered during the engagement.

 

2. DUE DILIGENCE & CLIENT RESPONSIBILITIES

Federal law imposes strict due diligence requirements on tax preparers regarding eligibility for certain tax credits (including, but not limited to, the Earned Income Credit (EIC), Child Tax Credit (CTC), and American Opportunity Tax Credit (AOTC)). To comply with these regulations, I am required to ask reasonable questions and request supporting documentation to verify the consistency of your information.

By executing this agreement, you explicitly agree to:

  • Provide complete, accurate, and truthful information regarding your income, expenses, deductions, and dependents.

  • Respond in a timely manner to follow-up questions or requests for clarification.

  • Provide verifiable supporting documentation (receipts, logs, canceled checks, etc.) upon request.

The Firm reserves the right to decline to file a return, pause work, or withdraw from the engagement entirely if the information provided is unreliable, inconsistent, or does not meet federal legal standards.

 

3. FEES, RETAINERS, AND BILLING

The Firm does not utilize a "one-size-fits-all" pricing structure. Because every client's financial situation is unique, professional fees are highly customized based on the scope, complexity, and specific volume of services required. Your specific financial investment will be outlined in a separate, customized proposal or project addendum provided during your consultation.

  • Tax Representation Retainer: For IRS or state tax authority representation services (such as audits, notices, or collections), the Firm strictly requires a customized retainer fee to be paid in full prior to the commencement of any work or communication with tax authorities. This retainer amount is determined based on the complexity of your case and what is legally required to resolve it.

  • New Client Onboarding Fee: All new clients are required to pay a non-refundable onboarding fee at the start of the engagement. This fee covers the initial administrative setup of your electronic file and must be paid before any professional work begins.

  • General Retainer & Upfront Deposits: To initiate standard tax preparation or bookkeeping work, a customized retainer or deposit is required. The exact amount varies based on the complexity of what needs to be accomplished and will be detailed in your individual proposal.

  • Advance Payment Requirement: To maintain efficient operations, clients are required to pay for services in advance or immediately upon presentation of an invoice. Because payments are collected before final deliverables (such as e-filing or monthly financial reports) are released, late payment interest is not standard, but the Firm reserves the right to immediately halt all work if an account balance is outstanding.

  • Bookkeeping Billing: Bookkeeping services are billed on a recurring monthly basis at the beginning of each service month, as outlined in your custom agreement.

  • Tax Preparation Billing: Tax preparation is billed based on the specific forms, schedules, and complexity involved in your returns, as detailed in your project proposal.

  • Fee Adjustments: If the Firm discovers that the manual labor, disorganized records, or unforeseen complexities significantly exceed the original quote or consultation estimate, I will contact you in advance for a written price revision before proceeding.

​

4. DEADLINES AND RUSH FEES

To ensure professional quality, mathematical accuracy, and timely filing with tax authorities, the Firm requires strict adherence to documentation deadlines.

  • 30-Day Document Cutoff: All required tax documents, logs, and information must be turned in to the Firm at least thirty (30) days prior to the statutory federal or state filing deadline.

  • Rush Fees & Extensions: Information received less than 30 days before a filing deadline is subject to an additional Rush Fee to expedite processing. Alternatively, if a timely filing cannot be guaranteed due to late documents, the Firm will file a tax extension on your behalf at a flat rate of $25.00. You remain responsible for any estimated taxes owed by the original statutory deadline.

 

5. PRIVACY, SECURITY, AND RECORD RETENTION (GLBA & WISP)

Your financial and personal privacy is safeguarded with the utmost care. In strict accordance with the Gramm-Leach-Bliley Act (GLBA) and Internal Revenue Service (IRS) regulations, the Firm maintains a comprehensive Written Information Security Plan (WISP) to protect your non-public personal information (NPI).

  • Confidentiality: Any and all data provided to the Firm will be kept strictly confidential and protected by modern digital security safeguards.

  • Record Retention: The Firm will return your original physical records to you at the conclusion of this engagement. The Firm will retain electronic copies of your records and internal work papers for a period of seven (7) years, after which they will be permanently and securely destroyed. You are solely responsible for securely storing your original records, as you may need them to prove accuracy to tax authorities in the future.

 

6. AUDITS AND CORRESPONDENCE

If your tax return is selected for an audit or you receive an official notice/letter from federal or state tax authorities, please notify the Firm immediately.

  • Separate Engagement Required: Standard tax preparation fees cover only the preparation and filing of your tax returns. Engaging the Firm to actively represent you, communicate with tax authorities, or defend your return in an audit requires a separate, dedicated Tax Representation Service Agreement and a customized retainer fee as outlined in Section 3. [1]

  • Errors and Liabilities: If the Firm is found to be at fault for a mathematical or data-entry error on a prepared return, I will correct the return at no additional charge and pay any resulting IRS or state penalties. However, the Firm is never responsible for the payment of the underlying taxes owed by the Client.

​

7. LIMITATION OF LIABILITY

To the maximum extent permitted by applicable law, the total cumulative liability of Drake & Co. Tax Advisory, LLC for any and all claims, losses, damages, or expenses arising out of this engagement—whether based on contract, negligence, or professional error—shall be strictly limited to the total amount of fees actually paid by the Client to the Firm for the specific scope of service in question.

 

8. DISPUTE RESOLUTION AND GOVERNING LAW

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of North Carolina. In the event of any dispute, claim, or disagreement arising out of or relating to this agreement or the services provided, the parties agree to first attempt to resolve the issue in good faith through mediation. If mediation fails to resolve the dispute within sixty (60) days, the matter shall be settled by binding arbitration in the state of North Carolina, in accordance with the commercial arbitration rules then in effect. The decision of the arbitrator shall be final and binding on both parties.

​

9. ELECTRONIC SIGNATURES AND INTEGRATION

This agreement may be executed via electronic signature platforms, including but not limited to AssureSign Nintex, Adobe Sign or Basil. Digital signatures shall have the same legal weight, validity, and enforceability as handwritten signatures. This letter applies to the current engagement and all future years of service unless the agreement is terminated or amended in writing by both parties.

 

10. CONCLUSION OF ENGAGEMENT

My engagement to prepare your tax returns officially concludes with the delivery of the completed returns to you (if paper-filing) or your digital signature on Form 8879 and my subsequent electronic submittal (if e-filing). If a return cannot be e-filed due to system constraints, you are solely responsible for printing, signing, and mailing it to the appropriate tax authorities.

​

11. WEBSITE TERMS AND MARKETING DISCLOSURES

If these terms or any executed project agreement conflict with information, blog posts, or descriptions found on the Firm’s public website, this written agreement controls. Past financial, bookkeeping, or tax results achieved for other clients do not guarantee or predict a similar outcome for your specific situation. No statement on the Firm's website or marketing materials guarantees any specific tax refund, liability savings, or audit outcome.

​

12. ACCEPTANCE OF TERMS

By executing a customized project proposal, submitting required tax or financial documentation, or paying any onboarding fees, deposits, or retainers to the Firm, you explicitly acknowledge that you have read, understood, and agreed to be legally bound by all the provisions, deadlines, and liability limitations outlined in this Master Services Agreement.​

 

CONTACT INFORMATION

If you have any questions regarding these terms, your customized proposal, or your services, please reach out directly:

bottom of page