3. Compliance RequirementsThe ERO must comply with all IRS and state e-file program requirements, maintain accurate documentation, and uphold strict due diligence standards.Any fraudulent, negligent, or non-compliant activity will result in immediate termination and potential legal action.
4. ConfidentialityBoth Parties agree to maintain the confidentiality of all taxpayer information, system credentials, business methods, and company processes.Unauthorized disclosure constitutes a material breach of this Agreement and may lead to civil and/or criminal penalties.
5. Independent ContractorThe ERO operates as an independent contractor and not as an employee, agent, or legal representative of the Service Bureau.The ERO is solely responsible for their own taxes, insurance, and business licensing.
6. Non-Disclosure Agreement (NDA)a. Definition of Confidential Information“Confidential Information” includes, but is not limited to: client data, software credentials, marketing systems, training materials, pricing, logos, templates, and business strategies belonging to the Service Bureau.
b. ObligationsThe ERO shall not copy, reproduce, share, sell, or disclose any Confidential Information to third parties, including competitors or other tax companies, during or after the term of this Agreement.
c. DurationThis NDA remains in effect throughout this Agreement and for two (2) years following termination or expiration.
d. RemediesThe Service Bureau may seek injunctive relief, monetary damages, and recovery of attorney fees for any breach. The ERO acknowledges that unauthorized disclosure causes irreparable harm not compensable by money alone.
7. Branding & Inconvenience FeeIf the Service Bureau provides branded software, custom logos, portals, or EFIN setup for the ERO, and the ERO later leaves, transfers their EFIN, or joins another Service Bureau after branding completion, the ERO agrees to pay a $1,000 Branding & Inconvenience Fee. This fee covers administrative labor, customization, and disruption caused by early departure. The fee is legally enforceable and due immediately upon termination or transfer.
8. Liability & IndemnificationThe ERO agrees to indemnify and hold harmless the Service Bureau, its affiliates, and representatives from any claims, damages, or losses resulting from:• Misrepresentation or negligence• Breach of confidentiality or this Agreement• Violation of IRS or state e-file rules• Non-payment of required fees
9. Dispute Resolution & Legal Enforcement
All disputes shall first attempt mediation.If unresolved, disputes shall be settled by binding arbitration under the rules of the American Arbitration Association in the Service Bureau’s home state.Judgment on an arbitration award may be entered in any court of competent jurisdiction.The prevailing Party shall recover reasonable attorney fees, arbitration costs, and court expenses.
10. TerminationEither Party may terminate this Agreement with written notice.The Service Bureau may immediately terminate for fraud, non-payment, or breach of confidentiality. Upon termination, all outstanding balances, including the $1,000 Branding & Inconvenience Fee, if applicable, become immediately due and payable.
11. Term
This Agreement shall remain active for two (2) years from the date of execution and automatically renew on a yearly basis unless either Party provides written notice of non-renewal at least 30 days prior to expiration.
12. Entire Agreement
This Agreement represents the full understanding between the Parties and supersedes all prior discussions or agreements.
Modifications must be in writing and signed by both Parties.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates written below.
