estimated tax withdrawals and payments

The information below is intended to explain what Daly & Company (“the Company”) will do and to inform you of the fees and terms and conditions that will be included in the engagement letter if you choose to enroll with the Company.

Requirements:

Federal Taxpayers: You must have filed a tax return with the IRS within the last six years.

New Jersey Taxpayers: You must have filed a NJ tax return previously.

What Will the Company Do?

· The Company will take the annual amount of estimated Federal and State taxes you want withheld and break it up into smaller withdrawals. 

· The Company will withdraw those smaller amounts, plus a withdrawal fee, on or around the 1st and 15thof each month according to your withdrawal schedule (which will be provided to you).

· The Company will use the funds it withdrew from your account to pay your quarterly estimated taxes to the Federal and State governments. 

· Your bank account of choice (business or personal) will be set to auto-pay. 

· Your bank account of choice must be located in the United States. 

· The Company will email you, and your tax accountant, if you provide the tax accountant’s contact information, a statement after each quarterly payment is made to the government agencies. The statement will show the date and amount sent to each government agency.

· You can create an account and login to the IRS and States’ tax authority websites to view the estimated tax payments that have been made on your behalf.

· You are authorizing the Company to pay, view, and communicate with the IRS and/or the State governments regarding your estimated tax payments.

· The Company is not offering tax advice or tax preparation services. The Company is offering the management of estimated tax payments based upon the amount you tell us you want paid in for the year.

I Understand the Following:

· Quarterly estimated taxes are the minimum amount of taxes the government requires to be paid-in for the tax year to avoid penalties and interest. Additional taxes could be owed when I file my tax return. 

· The semi-monthly withdrawal amounts and tax payments made to the government agencies on my behalf are based on the total annual estimated taxes that I told the Company, in writing, that I wanted withheld. If I made a mistake and asked for an amount to be withheld that is less than the required amount, that is my fault and not the fault of the Company.

· If I told the Company to withhold an amount for estimated taxes that is lower than the amount required by the government(s), then I am subject to government penalties and interest from my own actions of providing an insufficient amount to the Company.

· These estimated taxes are for my personal tax obligations, not a business, even if they are paid from a business bank account. 

· My withdrawals and all fees will automatically be deducted from my chosen bank account on or around the 1st and 15th of the month as shown on the schedule that will be attached to your engagement. It is my responsibility to ensure that my chosen bank account has enough money in it to fund the automatic withdrawals.

NOTE:  If you do not understand the items above, please review the instructions for estimated taxes on the IRS' website (IRS.gov and type 1040-ES into the search bar to find the instructions).

You Must Agree That:

· I have verified with my bank that the bank account I will use for the Company to withdraw funds is set-up for ACH (automated clearing house) withdrawals. It is up to me to check if my bank charges a fee for ACH withdrawals (banks usually do not). Any bank fees are my responsibility to pay.

· I will not dispute any ACHs from the Company or its third-party billing processor, Bill Operations, LLC (“Bill”).

· The Company and/or Bill will resubmit a failed, rejected, or reversed debit. I, the client, will reimburse the Company for all penalties, interest, and fees related to a failed, rejected, or reversed debit. It can take up to 70 days to be notified of a returned ACH. If a debit fails a second time, I understand that my account may be canceled at the Company’s discretion. The Company may cancel any client for having failed, reversed, or rejected payments. I am still required to reimburse the Company for all penalties, interest, and fees related to a failed, rejected, or reversed debit even if I am canceled as a client.

· I agree to receive all documents, statements, and communications electronically including, but not limited to, via email and file sharing portals.

· I am not entitled to interest from the Company on amounts collected, but not yet remitted to the government agencies.

Fees

Withdrawal Fee

The Company’s withdrawal fee is based on the number of government agencies that the Company will file estimated taxes with on your behalf. The fee is per withdrawal from your bank account. The fee will be added to your semi-monthly tax withdrawal. The fees are as follows:

Tier 1: Estimated taxes for the Federal government and up to 3 States:  $20

Tier 2: Estimated taxes for the Federal government and 4 through 8 States: $30

Tier 3: Estimated taxes for the Federal government and 9 through 15 States: $60 

Tier 4: Estimated taxes for the Federal government and 16 through 25 States: $100

Tier 5: Estimated taxes for the Federal government and 26 through 50 States: $150

Your withdrawal and fee will be on auto-pay. You will receive an invoice two weeks before each withdrawal. You will receive a reminder of the auto-pay debit 3 days before your payment begins to draft from your bank account. 

Changes and Change Fees

Changes to the amount of tax you want withheld for the new year are usually made after you file your tax return or extension for the prior year (usually in April or May). You are entitled to one free change of the amount you want withheld per calendar year. Additional changes are each a one-time fee equal to the semi-monthly withdrawal fee, shown above, for the number of government agencies for which the Company will change the withdrawal amount. For example, if you want to change your withdrawal amount for a second time during the same calendar year, and the Company files your federal estimates and estimates for four states, you will be charged a one-time $30 change fee. If you then wanted to change the withdrawal amount for a third time in the same calendar year, you would be charged $30 again. 

Pausing Your Account and Pausing Fees

You can pause and restart your account for free once during a calendar year (or pause in one year and restart in a later year for free). Restarting your account more than once during a calendar year incurs a $40 fee.

Cancellation

There are no cancellation fees. You must cancel your account with the Company in writing via email 15 days before the next government quarterly estimated tax due date to ensure your funds are not sent to the government agencies. 

The Company reserves the right to cancel and withdraw from this engagement at any time for reasonable cause or no cause at all. You will be notified via email of a withdrawal by the Company from this engagement and your funds held in our account will be returned to you.