1040 TaxBiz 80/20 "Special" Service Agreement 


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Package Cost

                                                    1040 TaxBiz PRO Package                                   $299

                                                    New Customer Discount                                    ($299)            

                                                    Grand Total                                                              $0


ALL PAYMENTS ARE NON-REFUNDABLE. Payment will be due at the time the agreement is completed.


1040 TaxBiz Traditional Tax Office Client Service Agreement

This Service Agreement is made and entered into by and between Lee’s Tax City, LLC /dba: 1040TaxBiz (hereinafter referred to as “1040TaxBiz”) and (Hereinafter referred to as “Client”) (Collectively referred to as the “Parties”). In consideration of the mutual covenants set forth herein and other good and valuable consideration, the receipt and sufficiency that the Parties hereby acknowledge, the Parties, intending to be legally bound, mutually agree as follows:
Term: Phase I, which includes tax law, software and marketing training as well as office setup assistance will begin on the date the agreement is signed and the required documents are submitted. Phase II begins January 1, 2024, and continues through December 1, 2024.

2. Renewal: The agreement will renew automatically if the “Client” meets the minimum required number of refund transfers (5) between the dates of January 1, 2024 and TAX DAY 2024. If “Client” fails to reach minimum number of Refund Transfers, “Client” must pay $299 to renew.

3. Price: Client agrees to pay 1040TaxBiz a non-refundable fee of $299 for setup, training, and client services at the time of submitting a completed agreement. 1040TaxBiz agrees to waive the initial $299 fee if the Client completes (5) funded bank products between January 1, 2024 through TAX DAY 2024.  If Client fails to reach the minimum required Bank Products, $299 will be charged on the credit card on file with 1040 TaxBiz the day following TAX DAY 2024.    

4. Service Cost:

a. EFILES - For all non-bank product personal tax returns (electronically filed returns known as EFILEs) as well as for paper filed returns, when the Client provides an EFIN number, 1040TaxBiz will charge the Client a service fee of $40 for personal and small business returns and $99 for corporate tax returns. Charges for Lee’s (1040taxbiz) direct electronically filed or paper filed returns will be $55 for personal and small business returns and $135 for corporate tax returns.

b. Bank Products - The Client recognizes that 1040TaxBiz will collect the “tax preparation fees” on all Bank Products and will deposit weekly into the Client’s account 80% of the Tax Preparation Fees upon receiving funds from the bank and 1040TaxBiz will retain 20%. If Lee's (1040taxbiz) must electronically file or mail the return, a service fee of $15 will be deducted from the Client's share.

The Client understands that direct costs will be added to the tax customer’s final fees for the third-Party products and services provided by 1040taxbiz. These direct costs include but are not limited to refund transfer charges for non-cash customers, software technology fees, audit protection services, service bureau fees, and shipping and handling for promotional items and are excluded from the shared revenue agreement between the Client and 1040TaxBiz. These fees will be collected by the bank and paid directly to the servicing Parties. The Client understands and agrees that Bank Product, Service Bureau, Technology, and Doc fees are not part of shared revenue, as these fixed fees are due and owed to third Parties and service bureau. The Client shall ensure that the fees are explained to the tax customer, as these fees are not part of the preparation charges and are paid to third Parties.

c. Facilitator Charge - Multiple states regulate the Cash Advance program and require a registration fee. The Client will pay the fee directly to the state. 1040TaxBiz can assist with the registration.

d. A Bank Product Acknowledgment and Enrollment (BPA&E) form confirming EFILE and Bank Product fees and other expectations will be required to be signed at the time of enrollment.

5. Client’s responsibility to pay:

a. EFILES: The Client is responsible for “EFILE” only charges when the return is accepted since they collect fees directly.

b. Bank Products: All fees are deferred at the time service is delivered to the tax customer. 1040TaxBiz will collect all fees once the IRS funds the customer’s tax return. If the IRS fails to fund the tax customer’s return, the Client will not be responsible for services fees or third-Party product charges.

6. 1040TaxBiz Duties and Responsibilities: 1040TaxBiz will assist the Client with: 

a. Guidance through obtaining Preparer’s Tax Identification Number(s) (PTIN); a number required by the IRS for professional tax preparers who are paid for federal tax preparation services.

b. Guidance through obtaining Electronic Filing Identification Number(s) (EFIN); which is provided to firms that have completed the IRS e-file Application to become an Authorized IRS e-file Provider. 1040TaxBiz will also provide fingerprint cards if necessary to complete this application.

c. Guidance through obtaining Employer ID Number(s) (EIN); a number to register as a business entity. Getting an EIN is optional, but there are some distinct advantages you stand to gain by applying for an EIN.

d. Enrollment in third party products that are essential for your tax office including but not limited to; Bank Product enrollment with our bank which will allow customers to defer payment until returns is funded as well as provide Cash Advances, audit protection services that can be added on to customers return to assist them in case of an audit, and other programs deemed necessary by 1040TaxBiz.

e. Providing access to our easy-to-use, online software for you and/or your team as well as training the owner and staff on how to navigate it. Multiple live and recorded sessions will be available to all staff. No download is required so the software is always accessible, and logins will be provided to all team members who complete necessary steps.

f. Full access to dedicated, live customer service during business hours. Help with questions or concerns regarding the tax software, tax questions, or any other issues. We also provide exceptional technical support with issues regarding your tax office such as check printing issues, software troubleshooting etc.

g. Access to excellent tax training on a diverse set of topics such as: standard tax preparation, tax prep for self-employed as well as small businesses and more. Training will also be provided on how to enter in variable IRS tax forms as well as the rules and regulations that surround these certain types of returns.

h. Marketing assistance will be provided in order to help your office grow with 1040TaxBiz. Complimentary digital marketing materials such as posters, flyers, door hangers and more will be sent to those offices which have met our standards. We will also provide live and recorded training on how to grow and build your tax office using social media, website creation, content curation etc.

i. 1040TaxBiz will provide one on one customer support year-round for any issues that arise during your contract period. We will always be available during business hours by phone, text, or email to resolve any issues you may be having with your tax office or clients even once tax season has ended.

j. Helping establish tax office policies and procedures which can prevent your office from dealing with IRS issues and audits. These policies and procedures could include document handling policies, accounting procedures and more.

k. Assistance in the planning and setup of a professional tax prep office location. While 1040TaxBiz does not provide the equipment, we can make recommendations on what equipment to use and purchase as well as assist with any office layout questions.

l. The ability to offer direct deposit for your customer and assistance on how to correctly enter their routing and account number to avoid IRS funding delays. We also assist with being able to offer checks to your clients as an option to receive their refund. This includes us providing physical check stock as well as training on how to correctly print or reprint checks, void checks or any other issues that may arise from offering checks to your customers

7. Client Duties and Responsibilities: Client hereby agrees to:

a. Complete, and require employees to complete, software training by December 22, 2023.

b. Obtain a Preparer Tax Identification Number (“PTIN”) from the IRS.

c. Electronically file and transmit income tax returns exclusively through 1040TaxBiz authorized software.

d. Obtain an Electronic Filing Identification Number (“EFIN”) from the IRS & use only the EFIN that Client has made known to 1040TaxBiz.

e. Abide by the ethical and operating standards set forth by the IRS and made available on its website as Pub 1345.

f. Acquire and make payment for all local and state licenses, fees, taxes or other obligations that may be required by law or local regulation.

g. Keep the software and all customer documentation confidential and secure.

h. Maintain customer records and third-party service agreements in a safe secure environment.

i. Verify suitability of any employees and to ensure operational safeguards are in place to protect customer’s financial information.

j. Use the software only within the scope of the license granted herein.

k. Will not use the software to provide outsourcing services to any third Parties or in a service bureau environment.

l. Provide necessary equipment (computers, printers, desk) and location to conduct a tax preparation business.

m. Make and transmit bank applications for Bank Products for processing exclusively through 1040TaxBiz.

n. Complete the minimum required number of Bank Products (5) between January 1, 2024 through TAX DAY 2024.

1040TaxBiz reserves the right to terminate this Agreement for Client's failure to meet these duties and responsibilities.

8. Non-Solicitation of Customer, Customer Prospects, and Vendors: You also covenant and agree that during the term of your agreement with the Company and for twelve (12) months after the termination thereof, regardless of the reason for the cancellation, you will not, directly or indirectly, solicit or attempt to solicit any business from any of the Company’s Customers, Customer Prospects, or Vendors with whom you had Material Contact during the last two (2) years of your agreement with the Company.

9. Non-Solicitation of Employees: You also covenant and agree that during the term of your agreement with the Company and for twelve (12) months after the termination thereof, regardless of the reason for the cancellation, you will not, directly or indirectly, on your own behalf or on behalf of or in conjunction with any person or legal entity, recruit, solicit, or induce, or attempt to recruit, solicit, or induce, any non-clerical employee of the Company with whom you had personal contact or supervised while performing tax operations, to terminate their relationship with the Company.

10. Default: Client will be in default of this Agreement if

a. Client infringes any proprietary rights pertaining to the Software.

b. Client becomes insolvent, makes a general assignment for the benefit of creditors, suffers or permits the appointment of a receiver for its business or assets, becomes the subject of any proceeding under any foreign or domestic bankruptcy or insolvency law, or has wound up or liquidated, whether voluntarily or otherwise.

c. Client fails to timely perform any of its obligations under this Agreement including the minimal number of transactions identified, the Duties and Responsibilities outlined in Section 7, or acts to defraud 1040TaxBiz.

d. Client uses other services to circumvent 1040TaxBiz service fees.

e. Client acts in unethical or illegal practices such as, but not limited to “boosting returns”, “falsifying documents”, failing to obtain signed approval for tax returns and or third-party products, or using the PTIN of someone not preparing the returns. In the event of default, 1040TaxBiz may pursue any legal or equitable remedy available to 1040TaxBiz, including without limit, termination of this Agreement, money damages, and injunctive relief. If the Client defaults or breaches any portion, section or requirement of this Agreement.

f. 1040TaxBiz reserves the right to unilaterally cease the Client’s access to the services being provided. Additionally, the client recognizes that other Third-Party providers, i.e., software companies and banks, enforce their own policies and cease to provide direct service to the Client.

g. Client acknowledges that Licensors are prohibited from providing products and services directly to the Client either before or after default pursuant to 1040TaxBiz Agreements with its Licensors. All rights and remedies of 1040TaxBiz shall be cumulative and not exclusive, and such rights and remedies may be exercised and enforced concurrently and whenever and as often as occasion therefore arises. Obligations to keep confidential information and to pay amounts due to 1040TaxBiz as well as the provisions of this Agreement shall survive termination.

11. Reseller Program: Client will receive 10% of the “New Client’s” 1st year Bank Product Revenue if the Third-Party office completes 25 FUNDED Bank Products. For subsequent years, the client will receive $10 per FUNDED Bank Product return produced by the office as long as the Third-Party office maintains 25 funded Bank Product returns per year. The “New Client” office is its own entity separate from the Client and bank product returns produced by the original client do not count toward the Reseller’s incentives of the Reward Program or waiving the renewal fee.

12. Acknowledgments: Client acknowledges understanding the term “Bank Products” as used in this Agreement, and that these products are made available through participating financial institutions (Participating Banks), pursuant to Agreements between 1040TaxBiz and Participating Banks, and that the fees charged for Bank Products (Bank Fees) are established by Participating Banks and 1040TaxBiz. As stated in item (3) Service Cost, 1040TaxBiz will determine Service Bureau fees. The software company will determine technology and transmitting fees. The client will determine Tax Preparation Fee for their market and services as applicable. These fees will be included on each invoice prepared for all tax returns. For non-bank products, the Client will collect these fees from taxpayers via cash, check or credit card at the time the return is prepared, and the Client is paid in full. The Client will not add to the invoice any non-preparation charges for the current year unless they have prior approval from 1040TaxBiz. The Client acknowledges that there are additional services and opportunities through the 1040TaxBiz marketing program. The terms and conditions of those services may amend or revise this agreement. The Client agrees to be bound by the updated terms and conditions of expected performance.

13.Cancellation: This Agreement shall be cancelled at the discretion of either Party from the period of commencement through December 1st. No fees paid to 1040TaxBiz shall be refundable due to cancellation of Agreement by Client. From the period of December 2 through April 15, this service Agreement may be cancelled, or service suspended only at the discretion of 1040TaxBiz for breach or questionable practices. If the client is denied by the IRS for their electronic filing identification number(s) (EFINs) this agreement will be terminated by 1040 TaxBiz.  Cancellation of either Party does not void any other part of the Agreement. To cancel the client can write cancel across the original order form, and fax or email cancel@1040TaxBiz.com. 1040TaxBiz will email notification to email address of record.

14. Mutual Non-Disparagement: During the term and for a period of two years thereafter, the Client will not make any statement (written or oral) that could reasonably be perceived as disparaging to 1040TaxBiz. During the term and for a period of two years thereafter, 1040TaxBiz will not make any statement (written or oral) that could reasonably be perceived as disparaging to the Client or any person or entity that they reasonably should know is an affiliate of the Client.

15. Exclusive use: You agree to use the software and 1040TaxBiz services exclusively for all tax preparation services performed by you or your affiliates and their employees for the contract period. You agree not to use the Software or third-party tax industry service that 1040TaxBiz directly contracts with for a period of two years once you leave 1040TaxBiz service. This includes software sourced from any licensor that 1040TaxBiz offers during the contracted period.

16. Indemnity: Client hereby agrees to indemnify, defend, and hold 1040TaxBiz and Third Party service providers harmless from and against any and all claims, actions, demands, suits, losses, costs, expenses and liabilities whatsoever, including reasonable attorney’s fees and expenses of litigation, on account of any such real or claimed damage or liability occasioned in whole or in part of any breach of this Agreement by Client or any act or omission of Client, its agents, or employees.

17. Governing Law and Remedies: The parties agree and acknowledge that all provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of Indiana exclusively and without reference to principles of conflict of laws.

18. Construction of Agreement: The covenants contained herein shall be presumed to be enforceable, and any reading causing unenforceability shall yield to a construction permitting enforcement. If any single covenant or clause shall be found unenforceable, it shall be severed, and the remaining covenants and clauses enforced in accordance with the tenor of the Agreement.

19. Entire Agreement: This Agreement represents the entire understanding between the Company, and you on the matters addressed herein and may not be modified, changed or altered by any promise or statement by the Company other than in writing signed by you and an authorized representative of the Company. The waiver by the Company of a breach of any provision of this Agreement by any employee shall not be construed as a waiver of rights with respect to any subsequent breach by you.


Attachment “A”: Recap of Key Points in Agreement


  1. I will provide a copy of my e-services EFIN Summary Application letter. The IRS requires a tax office to have an “EFIN” to electronically file tax returns. The IRS assigns an “EFIN” to identify firms that have completed the IRS e-file Application to become an Authorized IRS e-file Provider. Anyone in the tax office can apply for an EFIN at no cost. Once the provider completes the application and passes a suitability check, the IRS will send an acceptance letter, which includes the EFIN, to the Provider. If I do not already have an EFIN, the application process can take 45 days or more.
  2. I understand and acknowledge that I am required to apply for and use only the electronic filing identification number(s) (EFINs) made known to 1040TaxBiz.
  3. I understand and acknowledge that if I am denied by the IRS for the electronic filing identification number(s) (EFINs) this agreement will be terminated.
  4. I will provide a photocopy of my Driver’s License, clearly showing my picture ID, DL#, D.O.B. and Expiration Date. If my driver’s license is set to expire between now and December 31, 2023, I will need an updated copy before the tax season begins. This information is provided to the bank in order to obtain the use of bank products.
  5. I will provide a signed and completed ACH Transfer Form. The account information I provide on this form is for the sole purpose of crediting my share of preparation fees directly into my checking account or debiting revenue share for E-file returns when the customer pays at the time of preparations.
  6. I will provide a signed and completed Credit Card Authorization Form. The account information I provide on this form is for the sole purpose of debiting in case I fail to reach the minimum number of bank products required (5), or my bank account is NSF when 1040 TaxBiz debits for E-Files completed.
  7. I am required to complete the minimum required number of Bank Products (5) between January 1, 2024 through TAX DAY 2024.
  8. I understand and acknowledge that 1040TaxBiz will begin the season by making weekly debits and credits, typically on Wednesdays, directly to my account based on funded tax clients and I will have access to view the funding statements that reflect my tax clients who were funded by the IRS and the expected deposit amounts. Returned checks and/or payments are subject to a $30.00 non-sufficient fund (NSF) fee.
  9. I understand and acknowledge that if at any time during the tax season I need to change my banking, I will notify 1040TaxBiz immediately and I will provide 1040TaxBiz with a newly completed ACH Transfer Form to update my banking information. No changes to my banking will be made in the absence of the newly completed and signed ACH Transfer Form, which I can request from 1040TaxBiz. Likewise, if my office or shipping address or any other inform changes, I will complete a Change of Information Form.
  10. I will provide 1040TaxBiz with a W9 Form. The information I provide on the W9 will be used for tax purposes. If I have an EIN number, I will provide it on the W9 Form where indicated. If not, I will provide my Social Security Number on the W9 Form where indicated.
  11. I understand I will be required to pass a criminal background check.
  12. I understand and acknowledge that if I fail to operate in an ethical professional manner, 1040TaxBiz can revoke my service rights and no refund will be given.
  13. I understand and acknowledge that 1040TaxBiz will send me a 1099 form in January of 2025 to claim my income during the 2024 year when I am paid at least $600.
  14. I will not operate or use any tax software/service except those provided by 1040TaxBiz.
  15. I understand and acknowledge that 1040TaxBiz will provide guidance on product pricing and tax preparation fees which will reflect local markets. I however will set tax preparation fees for my clients. To qualify for certain marketing incentives and any other promotions or special deals inside this contract, 1040TaxBiz requires a minimum bank product tax preparation fee of $200.00.
  16. I recognize that if I cancel or default on the service agreement, 1040taxbiz will not service my clients as of the date of cancellation or default.
  17. I understand and acknowledge the Bank, Service Bureau, and Technology fees are not part of the revenue sharing as these fees are fixed costs due and owed to third parties.
  18. I understand that the revenue share for an E-file customer will be debited to my account at the time that the IRS accepts a return, and that bank product revenue share will be credited to my account at the time the bank provides 1040TaxBiz funding from the IRS. One debit or credit will be made to my account weekly based on the difference between all E-file and bank product return fees falling in the 7 day revenue share cycle during the main tax season.
  19. As the local owner and operator, I know I need to market my business. I understand that 1040TaxBiz brands and names are trademarked and I will not use them without prior approval.
  20. I understand and acknowledge that under no circumstances can these products or services be transferred or sold once they are purchased from 1040TaxBiz.
  21. I understand and acknowledge that I am solely responsible for the operation of my Tax Preparation business. Utilizing 1040TaxBiz services and marketing programs are not in any way a guarantee of expected performance.
  22. I understand that I am an independently owned and operated tax business and I have contracted with 1040TaxBiz to process tax returns, provide technical support, tax software, and marketing support to start and grow my tax business.

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Signature Certificate
Document name: 80/20 Special
lock iconUnique Document ID: 9d6525f5e72a40c54121489c486ae5b4ca5e1752
Timestamp Audit
October 25, 2023 4:27 pm EDT80/20 Special Uploaded by Brian Warden - brian@1040taxbiz.com IP
October 25, 2023 4:32 pm EDTJodi P - Jodi@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 25, 2023 4:32 pm EDTLisa M - Lisa@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 25, 2023 4:32 pm EDTAntonio A - Antonio@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 25, 2023 4:32 pm EDTBrian W - Brian@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 26, 2023 10:14 am EDTJodi P - Jodi@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 26, 2023 10:14 am EDTLisa M - Lisa@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 26, 2023 10:14 am EDTAntonio A - Antonio@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip:
October 26, 2023 10:14 am EDTBrian W - Brian@1040taxbiz.com added by Brian Warden - brian@1040taxbiz.com as a CC'd Recipient Ip: