Terms and Conditions

This letter confirms and sets forth the terms and conditions of the engagement between Direct Funder LLC (Party 1) and Client (Party 2), including the scope of services to be performed, and the basis of compensation for those services. Upon execution of this letter by each of these parties below, this letter constitutes an agreement between Direct Funder LLC and the Client.

 

Need for a third party

To successfully perform the engagement, there is a requirement for a third party (Party 3). Party 3 is:

• Either a CPA firm or tax preparation firm that has an existing relationship with the Client, or a CPA firm; or

• A tax preparation firm that has been introduced to the Client by Direct Funder LLC. 
   

The role of Direct Funder LLC is to perform the necessary due diligence and materials preparation to determine the extent of Sick & Family Leave Tax Credits (“SFLTC”) that may be available to the Client. The role of Party 3 is to file the necessary documentation with the Internal Revenue Service (IRS), including but not limited to IRS forms 1040-X and 7202 under their Paid Preparer Tax Identification Number (PTIN).
 

Scope of Services

Direct Funder LLC, as Party 1 will, on behalf of Client, perform the following services (the "Services"):

a. Provide a qualification document that enables Client to self-validate eligibility for the Sick & Family Leave Tax Credits (“SFLTC”);

b. Calculate wage attribution, as defined in section 3121(a) of the Internal Revenue Code (“Code”) and compensation as defined in section 3231(e) of the Code and as otherwise required by statute or regulation (collectively the “Qualified Wages”).

 

Party 3 will prepare and file on Client’s behalf an amended IRS forms 1041-X and 7202 for Client, together with other document(s) needed to claim the SFLTC for calendar years 2020 and 2021, with the IRS. If Client uses a PEO or CPEO, or if Client wishes to use their own payroll provider to file, Direct Funder LLC will prepare all calculations and documents to assist that related third party with the filing process.

 

Client Responsibilities

Client shall provide Direct Funder LLC with the following “Client Supplied Data:”

a. Tax returns including schedule Cs for 2019, 2020, and 2021.

b. Copy of Driver License.
 

Client agrees that Direct Funder LLC and Party 3 will be relying on “Client Supplied Data” to provide the Services, and as a result, all “Client Supplied Data” must be true, correct and complete in all respects.

 

Paid Preparer – Party 3

Party 3 shall be considered and will be listed as a Federal Tax Return Preparer (“Paid Preparer”) for the amended  form 1040-X filings and will, accordingly, have limited representation rights before the IRS on behalf of the Client. Accordingly, Party 3 must have and will maintain a valid PTIN with the IRS, which will be included in the Paid Preparer section on the amended 1040-X. Party 3 will rely on Client answers and attestations in the Client Questionnaire regarding eligibility for SFLTC credits.

 

Payment Terms

a. Client agrees to pay an Administrative (Filing) Fee to Direct Funder LLC in the amount of $350. If the Client ultimately receives an SFLTC, the Contingent Fee set forth below shall NOT be reduced by the Administrative (Filing) Fee.
b. Other than as specifically set forth herein, Client understands that the fees to be paid hereunder will be “contingent,” or in other words, if no SFLTC is received, no Contingent Fee will be owed to Direct Funder LLC for the representation that is the subject of this agreement.
c. If a SFLTC is issued or a tax bill is reduced, the Contingent fee that Client pays to Direct Funder LLC is:

• If the qualified amount is $5,000 or over of any such refund or reduction, then the Administrative (Filing) Fee will be $350, and the Contingent Fee will be twenty percent (20%) on the back end when the tax refund is received; or

• If the qualified amount is $4,999 or under of any such refund or reduction, then the Administrative (Filing) Fee will be $350 upfront, and the Contingent Fee will be twenty percent (20%) on the back end when the tax refund is received (with a $300 minimum amount).

Refund checks issued by the IRS are to be sent to tax preparer’s office. The Administrative (Filing) Fee has to be submitted to Direct Funder LLC before the refund check is sent to the Client. 

In order to effect payments to the tax preparer’s office, the Client must sign and file IRS form 8822 no later than the date of filing. Checks received from the IRS will be released to the Client after the final settlement has been made.

https://www.irs.gov/pub/irs-pdf/f8822.pdf

 

Payment terms between Direct Funder LLC and Party 3, and all other terms and conditions are separately negotiated between the Direct Funder LLC and Party 3, and are outside of the scope of this letter.

 

Esignature

This agreement authorizes Direct Funder LLC to use “Face Scan” technology as a form of electronic signature (esignature). Direct Funder LLC will use this technology for the signing of IRS forms 7202, 8801, and 8802 to make the amendments necessary for the refund.

 

https://www.irs.gov/pub/irs-prior/f7202--2021.pdf 

https://www.irs.gov/pub/irs-pdf/f8801.pdf 

https://www.irs.gov/pub/irs-pdf/f8802.pdf 

 

Venue and Choice of Law

This agreement shall be governed by and construed in accordance with the laws of the State of Arizona without regard to principles of conflict of laws. Any lawsuit arising from or relating this agreement shall be brought in the United States District Court for the District of Arizona or Maricopa County Superior Court. The parties waive any objections they may have to personal jurisdiction, venue, for any matter brought relating to this agreement.

 

Severability

If any clauses or provisions herein contained operate or would prospectively operate to invalidate this agreement, in whole or in part, then such clauses and provisions only shall be held for naught, as though not herein contained, and the remainder of this agreement shall remain operative and in full force and effect.

 

Disclaimer

Client understands and agrees:
 

a. that neither Direct Funder LLC nor any of its owners, officers, managers, employees, agents, associates, and affiliates (collectively “Direct Funder LLC”) are attorneys;

b. that Direct Funder LLC has not provided and will not provide to Client legal advice or opinions of any nature;

c. that Client has been encouraged to obtain such legal advice and opinion from an attorney or attorneys of Client’s choice;

d. that Client has either obtained such advice and/or opinion as part of Client’s due diligence or has decided independently not to do so;

e. the Services will not include verification or constitute a formal review or audit in accordance with any applicable accounting standards;

f. that Client is not relying on any statement made to Client by Direct Funder LLC regarding whether Client will qualify for an SFLTC or the amount of any such SFLTC;

g. that it is not the responsibility of Direct Funder LLC to perform any other accounting services other than those specifically set forth herein;

h. that Direct Funder LLC's and Party 3’s engagements shall not constitute an audit, examination, review of any kind, compilation, or compilation of agreed-upon procedures as defined by the AICPA, or any other type of financial statement reporting engagement that is subject to the rules of the AICPA, SEC or other state or national professional or regulatory body. 

The management team of the Client is responsible for any and all financial information prepared during the course of this engagement. 

Accordingly, as part of this engagement, Direct Funder LLC or Party 3 will not express an opinion or other form of assurance on the financial statements or financial components of the Client; and

i. that while Direct Funder LLC is informed and believes that the SFLTC is a valid and viable program offered by the IRS – refer to the link:

https://www.irs.gov/newsroom/new-irs-form-available-for-self-employed-individuals-to-claim-covid-19-sick-and-family-leave-tax-credits-under-ffcra

 

Direct Funder LLC makes no representations or warranties regarding:

i. whether any person entity for whom Direct Funder LLC prepares an application for SFLTC with Party 3 will ultimately qualify for such credit,

ii. whether the IRS will or will not audit Client with respect to Client’s application for SFLTC, and

iii. whether, if audited, the IRS will or will not disallow all or part of the Client’s SFLTC (including possibly assessing interest and penalties on any disallowed amount (“IRS Assessment”)). 

Client specifically and expressly waives any claim, demand or liability as against Direct Funder LLC and Party 3 (and each of its owners, officers, managers, employees, agents, associates, and affiliates) regarding any IRS assessment (except as set forth above, which shall be strictly construed).