Tax Software with $0 Upfront — Grow, Keep, and Train Your Team.
A modern, audit-ready tax preparation ecosystem designed for teams, service bureaus, and preparers who want compliance, growth, and year-round support.
A modern, audit-ready tax preparation ecosystem designed for teams, service bureaus, and preparers who want compliance, growth, and year-round support.
Trusted by preparers nationwide · Compliance-first · Gold-standard training
8,000+ Returns Processed
Trusted by Preparers in 40+ States
98% Customer Satisfaction
Weekly Training + 24/7 Support
I. Scope of Work
The Consultant Firm agrees to perform the following services:
- Audit every file for each transmitted tax return, whether accepted or rejected.
- Create a checklist for each file reviewed.
- Notify the Client of any missing documentation.
- Review all customer notes for each file and include any additional notes as necessary in the file audit checklist.
II. Compensation
As both parties anticipate at least 500 files for review, Tans Tax Pros agrees to compensate the Consultant Firm as follows:
| Number Of Files | Rate Per File | Total |
|---|---|---|
| First 500 Files | Files 501 - 1000 | Files 1001 - 1200 |
| $67.00 | $32.75 | $25.00 |
| $33,500 | $16,375 | $5,000 |
- The base fee for the first 500 files is $33,500
- Each file beyond the first 500 will be billed at $32.75 per file.
- Each file beyond 1,000 will be billed at $25 per file.
III. Audit Method and Locations
Audits will be conducted both virtually and onsite.
Covering Tans Tax Pros offices located in Verona, Mississippi, and Bridgeport, Michigan.
The Consultant Firm agrees to conduct at least three (3) in-person site visits to each location during the tax season beginning January 1, 2026, through April 15, 2026.
IV. Documentation and Additional Requirements
Any additional documents, records, or client notes required to complete audits will be provided by Tans Tax Pros.
Sample Returns
Fees agreed upon for the use of the software.
Tax preparer Due Diligence Checklist
A compliance-first checklist for preparers and auditors
1. Client Identity Verification
- Obtain and verify a valid government-issued photo ID (Driver’s License, Passport, or State ID)
- Verify Social Security Cards or ITIN letters for the taxpayer, spouse, and dependents
- Notify the Client of any missing documentation.
- Confirm the taxpayer's address and contact information are up to date
2. Income Documentation
- Collect all W-2s, 1099s, K-1s, or other income documents. For self-employed clients
- Obtain profit & loss statements, bank statements, or invoices
- Ensure reasonable income and expense documentation.
- Verify any rental income with supporting documents (lease agreements, receipts)
3. Deductions & Credits Verification
A. Earned Income Tax Credit (EITC)
- Complete Form 8867 (Paid Preparer’s Due Diligence Checklist
- Verify the taxpayer’s income and employment.
- Obtain proof of residency for dependents (school records, medical records, court documents)
- Confirm relationship to dependents (birth certificates, adoption papers, or guardianship papers)
B. Child Tax Credit (CTC) / Additional Child Tax Credit (ACTC) / Credit for Other Dependents (ODC)
- Verify dependent’s age and relationship (birth certificate, adoption records)
- Obtain proof of residency (same as EITC).
- Confirm that the child lived with the taxpayer for more than half the year
C. Head of Household (HOH) Filing Status
- Ensure the taxpayer meets the IRS requirements for HOH.
- Verify proof of separate residency from spouse (lease agreement, utility bills).
D. Education Credits (AOTC & LLC)
- Collect Form 1098-T (Tuition Statement) from an eligible institution
- Verify expenses for books, supplies, and educational materials
E. Business Income & Expenses (Self-Employed Clients)
- Confirm that the taxpayer is engaged in a legitimate trade or business
- Obtain profit & loss statements, receipts and/or bank records
- Ensure business expenses are reasonable and supported by documentation
4. Filing Status & Return Accuracy
- Review filing status eligibility (Single, Married Filing Jointly, HOH, etc.)
- Ensure dependents are correctly claimed and not claimed on another return
- Double-check income, deductions, and credits for accuracy.
- Ask clarifying questions to prevent fraudulent claims.
5. Required Forms &
Signature
- Form 7216 (Consent to Use & Disclose Tax Information)
- Form 8879 (E-File Signature Authorization)
- Client Intake & Interview Form
- Bank Documents
6. Record-Keeping & Compliance
- Maintain a copy of all supporting documents for at least three (3) years
- Store all files securely in locked cabinets or encrypted digital storage
- Ensure no falsification or manipulation of tax return data.
- Document all communications with the client regarding tax-related issues.
Client File Compliance & Record-Keeping Policy
Every client must have a secure and complete file that includes:
- Basic Client Information- Client Intake Form(completed and signed).Valid Government-Issued Photo ID (Driver’s License, Passport, or State ID).Social Security Card or ITIN Letter (for taxpayer, spouse, and dependents)
- Tax Documents - All Income Documents W-2s, 1099s, 1098s, K-1s, etc.Self-employment income records (Profit & Loss statements, bank statements, invoices, etc.) Rental income documentation (lease agreements, receipts, etc.) Deduction & Credit Documents Mortgage interest statements Student loan interest statements Childcare provider receipts and Form 2441 Charitable donation receipts Banking Information Form (if opting for direct deposit)
- Compliance & Authorization Forms- Form 7216 (Consent to Use & Disclose Tax Information)Form 8879 (E-File Signature Authorization) Royal Tax Service Agreement & Payment Form Acknowledgment of Due Diligence Compliance
Required Documents for Clients Claiming Specific Credits Certain tax credits require additional documentation to meet IRS due diligence and audit standards.
Failure to collect and retain these records may result in IRS penalties:
- Earned Income Tax Credit (EITC)- Proof of income & employment (pay stubs, W-2, 1099s) Proof of residency for dependents (school records, medical records, lease agreement, or court documents) Relationship proof (birth certificates, guardianship papers, or court orders) IRS Form 8867 (Paid Preparer’s Due Diligence Checklist)
- Child Tax Credit (CTC) / Additional Child Tax Credit (ACTC) / Credit for Other Dependents (ODC)- Proof of relationship (birth certificate, adoption papers, or legal guardianship) Proof of residency (same as EITC) Proof of financial support (if applicable)
- Head of Household (HOH) Filing Status- Proof of separate residence from spouse (if married but filing separately) (lease agreement, utility bills, or ocial mail) Proof of primary support for dependent (bank statements, school records, medical records)
- American Opportunity Tax Credit (AOTC) / Lifetime Learning Credit (LLC) Form 1098- T (Tuition Statement) Proof of enrollment (school records or transcripts) Receipts for books and educational materials
- Self-Employed Clients & Business Owners - Profit & Loss Statements (or other income documentation) Business expense receipts (including mileage logs if claiming business vehicle deductions) Bank statements supporting income and expenses
3. Record-Keeping Requirements:
- File Storage & Security- All client files must be stored securely, either in locked filing cabinets (for paper files) or encrypted digital storage (for electronic files).Only authorized personnel may access client files.
- Retention Period- IRS requires that client records be kept for at least three (3) years after filing.Files must be securely destroyed after the retention period if no longer needed
- Ensure no falsification or manipulation of tax return data.
- Electronic Filing & Document Backup- Scan and store digital copies of all required documents for each client.Ensure that digital records are backed up and accessible if needed for audits or amendments.
Our Responsibilities & Your Role
Our Responsibilities to you
Software provision and support
- We provide our tax prepartion software to you along with ongoing support before, during, and after tax season. Our support services includes assistance for both regular and extended tax season hours, from your start date through October 15th of the year of purchase.
Accuracy and Compliance
- We reserve the right to reject any tax return that is incomplete, inconsistent, or contains inaccurate documents or notations. This ensures compliace with all regulations and safeguards against falsely disallowed credits that could affect refunds for taxpayers
Accounting Services
- If required, we provide accurate accounting for any fees due based on the terms of the purchased agreement.
Your Role in the Partnership
Business Turnaround
- We kindly ask for a 24-hour business turnaround during peak tax season to ensure all matters are handled efficiently
Resource Utilization
- Please Utilize all available resources and support channels we provide to address any questions or concerns during the tax season.
Client Portal Usage
- Use the client portal effectively to help manage the influx of business-related questions and inquiries.
Tax preparer Roles and Responsibilities
Software provision and support
- Follow and Abide by All Federal and State Tax Regulations while contracted with Xpress Tax Software
- Conduct Client Interviews. Gather all necessary accurate documents taxpayers responses to ensure compliance and thoroughness in the tax preparation process
- Complete all Software Training provided by Xpress Tax Software to utilize its features effectively and accurately.
- Agree to Fees and Commission Splits as outlined in XTS purchase agreement.
- Provide accurate tax preparation Services. Maintain accountability for any mistakes, mishaps or misuse within the software or services provided to clients. This includes address any audits, disputes, or legal issues.
- Complete required Tax Education. Fulfill the IRS requirements, including 18 CE credits and the passing of the AFSP exam, if mandated b the state or IRS.
- Undestand Independent Contaractor Status: Recognize that the Purhaser operates as an independent conractpr and is not an employee of Xpress Tax Software or its parent companies.
- Review each retur for compliance prior to transmitting it to tax authorities to ensure accurancy and adherence to regulations
- Use client information professionally. Handle all financial and tax data with confidentiality and for professional purposees only
- Maintain Business Insurance. Have and retain insurance coverage that protects against any expenses or liabilities thatmay arise during tax preparation activities.