This letter confirms your understanding of the terms and objectives of our engagement and the nature and
limitations of the services that ERCPPP Tax Specialist, LLC (the “Provider”) will provide to (the “Taxpayer”) with respect to the Employee Retention Credit
(“ERC”) and the Pay check Protection Program (“PPP”) loan forgiveness.
You have engaged ERCPPP Tax Specialist, LLC to assist you in servicing your needs related to the
Employee Retention Credit (“ERC”) and the Paycheck Protection Program (“PPP) loan forgiveness.
Our scope of work and related deliverables are as follows:
- Preliminary check to assist you determine whether you qualify for the ERC credit (at no charge).
- Detailed work papers documenting the qualification of Taxpayer for ERC purposes and the eligibility
of wages and salaries used in the calculations
- Detailed work papers documenting the ERC calculations, including employee- by-employee
analysis of amounts applied towards PPP forgiveness versus ERC
- Organization of the documentation supporting the ERC calculations and conclusions Line by line
amounts for claiming the ERC on amended Forms 941
If applicable, we will assist you with the organization of documentation supporting your application for PPP
loan forgiveness and provide you with our calculations and conclusions regarding the respective amounts
of eligible expenses
Although we will assist you, the final determination as to whether you qualify for the ERC is solely your
responsibility. We will not begin detailed work on the ERC for Taxpayer until we have received confirmation
from you of your conclusion that you qualify.
Our services include providing you with the amounts to be reported on amended Forms 941-X and the
preparation of the relevant IRS forms. We ask that you sign an IRS Form 2848 to give us Power of Attorney
(without revoking any existing POAs) for the specific quarters we will work on. We will provide our
deliverables to you in a form that will assist you in any governmental audit or enquiry. However, these
deliverables should not be construed as comprehensive since such authorities may ask for additional
supporting documentation (such as receipts, cancelled checks, copies of tax filings etc).
Our fees will be charged on a value billing basis. The amount of our fee, the due dates for payment and
our provision of the deliverables are detailed below -
Amount of fee: 10% of the ERC amount for each quarter, due upon completion of our deliverables
Payment terms:
- 15% of the fee is payable on or before 7 days after we provide you with the amended Form 941X
for the relevant quarter.
- The remaining balance of the fee is payable on or before 7 days after you receive the ERC (through
a refund or credit against other taxes).
We will provide you with a download link to the detailed work papers and support documentation on or
before 3 business days after receiving full payment. Our fees are non-refundable and not dependent on the
receipt of ERC refunds or credits from the IRS.
During the course of providing our services, we will interact with and rely on your staff to provide us with
the necessary data and documents, and the coordination of any meetings we require in order to complete
the assignments. We will not audit or verify the information you provide to us. Our engagement cannot be
relied upon to detect errors or fraud, or any deficiencies in the internal controls at your business.
You will designate a person from your management who possesses the required knowledge and experience
to oversee this engagement and the provision of data and documentation. If you choose to designate your
outside CPA or tax preparer firm (“Firm”) to serve in this role, we will require an email confirmation and
authorization of the same from you. In such a case, we may share a portion of our fee with such Firm for
the assistance they provide. It is your responsibility to ensure that the data provided to us is complete and
accurate, and not contradicted by information contained in other documents, such as tax returns filed with
taxing authorities or data provided to lenders during the PPP loan application.
You are responsible for understanding all requirements and restrictions applicable to the ERC calculations
and filings of ERC calculations and filings and their PPP forgiveness applications. Any ERC claim submitted
on federal employment returns is subject to regulatory review and approval. We therefore cannot guarantee
that the refund claim will be approved in full or part. Federal regulations are subject to change, and any
changes which occur after the delivery of our work product may affect the refund claims of your clients. We
are not obligated to communicate any changes to you or alter any prior work product delivered to you for
any such changes.
You agree to indemnify, defend, and hold harmless the Provider and any of its partners, principals,
shareholders, officers, directors, members, employees, agents or assigns with respect to any and all claims
made by third parties arising from this engagement, regardless of the nature of the claim, and including the
negligence of any party, excepting claims arising from the gross negligence or intentional acts of the
Provider.
The terms of this engagement may be altered by Provider and Taxpayer by mutual Agreement in writing.