Independent Contractor Agreement

Tax Preparation Services

This Independent Contractor Agreement ("Agreement") is made effective the date signed below between Royal Financial, located at 355 E. Blackstock Rd., Suite C, Spartanburg, SC 29301 (the "Firm"), and [your name], located at [your address] ("Contractor").

1. Services

Contractor will provide tax return preparation services and client file management to clients of the Firm ("Services"). Services are performed under the Firm's name and Electronic Filing Identification Number (EFIN), using the Firm's approved tax software and client portal.

2. Independent Contractor Status

Contractor is an independent contractor, not an employee, partner, or agent of the Firm. Contractor controls the manner, means, hours, and location of the work, and may work from home, subject to the Firm's quality, compliance, and security standards. Contractor is not eligible for employee benefits, including health insurance or paid leave. Contractor is solely responsible for all income and self-employment taxes on payments received. The Firm will issue Form 1099-NEC as required by law.

3. Compensation

Compensation is split 70/30: Contractor receives 70% and the Firm retains 30% of the preparation fee collected on each return Contractor prepares. Payment is made weekly by direct deposit for returns that are completed, approved by the Firm, accepted by the taxing authority, and paid in full by the client. When a client's fee is paid from their refund through a bank product, the return is treated as paid in full when the Firm receives the fee. No compensation is owed on returns for which no fee is collected.

"Preparation Fee" means only the fee the Firm charges a client for preparing the tax return, as listed on the Firm's fee schedule, less any discount the Firm approves. The Preparation Fee does not include bank product fees, e-file or transmission fees, technology or service bureau fees, audit protection, other third-party fees, or any amount refunded to the client. The Firm will provide Contractor its current fee schedule and give notice before changing it.

Example: a return with a $400 Preparation Fee and $99 in bank product and technology fees pays Contractor $280 (70% of $400). The Firm retains $120 of the Preparation Fee, and the $99 is not split.

The Firm sets all client fees and collects all client payments. Contractor will not accept payment directly from any Firm client. Contractor will correct any errors or omissions on returns Contractor prepared, whether intentional or inadvertent, without additional compensation.

4. Onboarding Fee

Contractor will pay a one-time onboarding fee of $347.00. The fee covers onboarding, training materials, WISP security training, bank products training, and software and portal setup. Contractor may pay the fee:

• In full: $347.00 at onboarding;
• By payment plan: a $150.00 deposit at onboarding, with the remaining $197.00 charged in two payments of $98.50 each, 15 days and 30 days after the deposit, under a signed Credit Card Authorization;
• Deposit + first payout: a $150.00 deposit at onboarding, with the remaining $197.00 deducted from Contractor's first weekly payouts until paid; or
• $0 down: a total of $397.00 (the $347.00 fee plus a $50.00 pay-later fee), deducted from Contractor's first weekly payouts until paid.

For the payout options, Contractor authorizes the Firm to make these deductions from Contractor's weekly payouts. System access may begin once the full fee or the deposit is paid, or, for the $0-down option, once onboarding is complete. If a scheduled payment is declined, the Firm may pause system access until the balance is paid. The onboarding fee is non-refundable, and any unpaid balance remains due if this Agreement ends.

Balance due date: Any balance Contractor chooses to pay from weekly payouts is due by the earlier of (a) Contractor's first weekly payouts or (b) March 1, 2027. Any part of the balance not collected from weekly payouts by March 1, 2027 is due in full on March 1, 2027, and Contractor will pay it that day by card or payment link. Contractor authorizes the Firm to send an invoice or payment link for that amount.

5. Onboarding Documents

To complete onboarding, Contractor will provide the following through the Firm's secure upload before receiving system access:

• A copy of a current, valid driver's license
• A copy of Contractor's Social Security card
• A copy of Contractor's PTIN registration in ACTIVE status (register or renew at rpr.irs.gov)
• Form W-9, completed through Royal Payroll
• A voided check or a bank direct deposit form, with the signed Direct Deposit Authorization
• Proof of professional liability (errors and omissions) insurance
• Contractor's business logo, if Contractor operates under a business name

The Firm stores these documents under its Written Information Security Plan and uses them only to verify identity and credentials, set up software and payroll, and meet tax reporting requirements.

6. Software Setup

The Firm will set up Contractor in its tax software under the Firm's EFIN. Contractor will submit the Firm's Software Setup Form with a requested username, a 5-digit signature PIN, and Contractor's PTIN. Contractor's login credentials and PIN are personal to Contractor and may never be shared. The Firm will never ask for Contractor's password by email or text.

7. Professional Standards and Training

• Maintain a valid, current Preparer Tax Identification Number (PTIN) at all times and sign every return prepared as the paid preparer using that PTIN. Contractor may not prepare returns for the Firm without an active PTIN.
• Follow all federal and state laws governing tax return preparation, IRS e-file rules (Publication 1345), and Treasury Department Circular 230 where applicable.
• Meet due diligence requirements for EITC, CTC/ACTC/ODC, AOTC, and head of household filing status, including complete and accurate Form 8867. Failure to meet these requirements is a breach of this Agreement.
• Submit every return for Firm review. No return may be transmitted without Firm approval.
• Never alter a return, refund method, or bank information without documented client consent.
• Complete 18 hours of continuing education each year, and renew the PTIN before it expires each December 31, giving the Firm proof of both.
• Before receiving system access, complete the Firm's WISP security training, score 70% or better on its assessment, and sign the Firm's WISP agreement. Repeat WISP training and sign an updated WISP agreement each year.
• Before offering bank products, complete the Firm's bank products training with a score of 70% or better, and complete any annual preparer training or certification the bank product provider requires, giving the Firm a copy of the certificate.
• Offer bank products (such as refund transfers) only as trained, following the bank product provider's rules, giving clients all required disclosures, and never pressuring a client to choose one.

Any willful falsification of documents or return information will be reported to the IRS and other appropriate authorities.

8. Clients, Non-Solicitation, and Non-Competition

All clients served under this Agreement are clients of the Firm, including clients Contractor refers. During this Agreement and for two (2) years after it ends, Contractor will not, directly or indirectly:

• Solicit, accept, or provide tax or advisory services to any Firm client Contractor served or learned of through the Firm, or encourage any client to leave the Firm;
• Disclose the names, addresses, or any other information about Firm clients to anyone; or
• Solicit any employee or independent contractor of the Firm to leave or to work for another business.

During the term of this Agreement, Contractor will not operate or work for a competing tax preparation business without the Firm's written consent.

9. Confidentiality, Data Security, and Records

Contractor will comply with the Confidentiality and Data Security Agreement and the Firm's Written Information Security Plan (WISP), which are part of this Agreement. Contractor will sign the Firm's WISP agreement after completing WISP training. The Firm maintains all client files in its systems as required by the IRS. Contractor is responsible for creating complete files for each return and will not keep copies of client files outside the Firm's systems.

10. Work Product

All work product Contractor creates in providing Services, including client files, forms, templates, and processes, belongs exclusively to the Firm. On request, Contractor will sign any documents needed to confirm the Firm's ownership.

11. Equipment, Software, and Expenses

The Firm provides access to its tax software, client portal, and CRM. Contractor provides a computer meeting the Firm's security requirements and a secure internet connection. Contractor's business expenses, including travel, supplies, and equipment, are Contractor's own and are not reimbursed. All Firm accounts, data, and materials remain Firm property and must be returned or surrendered when this Agreement ends.

12. Term and Termination

This Agreement has a term of 12 months from the effective date and may be renewed by written agreement of both parties. Either party may end it early with 30 days' written notice. The Firm may end it immediately for breach of confidentiality, misconduct, loss or suspension of Contractor's PTIN, IRS sanctions, or any conduct that exposes clients or the Firm to harm. On termination, the Firm will pay compensation earned for approved and paid returns, and all system access will be revoked.

13. Indemnification

Contractor will indemnify and hold the Firm harmless from all claims, losses, penalties, costs, judgments, and attorney fees caused by the acts or omissions of Contractor or anyone working for Contractor, including preparer penalties under Internal Revenue Code §§6694 and 6695.

14. Insurance

Contractor is required to maintain professional liability (errors and omissions) insurance throughout this Agreement and to provide proof of coverage before receiving system access.

15. Remedies

Contractor agrees that a breach of Section 8 or 9 would cause the Firm irreparable harm that money damages cannot fully cover. The Firm is entitled to injunctive relief to enforce those sections, in addition to any other remedy available by law.

16. General Terms

This Agreement is governed by the laws of the State of South Carolina, and the parties agree to the jurisdiction of the courts of Greenville County, South Carolina. It is the entire agreement between the parties on this subject, replaces all prior agreements, and may be changed only in writing signed by both parties. A waiver of any breach must be in writing and does not waive any other breach. If any provision is unenforceable, it will be limited to the extent needed to make it enforceable, and the rest remains in effect. Sections 8, 9, 10, 13, 15, and 16 survive termination.

---

Confidentiality & Data Security Agreement

Taxpayer Information Protection

As a condition of working with Royal Financial, [your name] ("Contractor") agrees to the following.

1. Taxpayer Information

"Taxpayer Information" means any information obtained in connection with preparing returns or providing services, including names, addresses, Social Security numbers, income, bank account details, identity documents, and tax returns.

2. Legal Obligations

Contractor understands that:

• Internal Revenue Code §7216 makes it a crime to knowingly or recklessly disclose or use Taxpayer Information for any purpose other than preparing the return, punishable by fines and imprisonment. Civil penalties also apply under §6713.
• Tax preparers are financial institutions under the Gramm-Leach-Bliley Act and must protect customer information under the FTC Safeguards Rule.

3. Contractor Will

• Use Taxpayer Information only to provide Services to Firm clients.
• Access and share client documents only through Firm-approved software and the secure client portal.
• Use multi-factor authentication on every Firm system and never share login credentials.
• Never send Taxpayer Information by personal email, text message, or social media.
• Never store client files on personal devices, USB drives, or personal cloud accounts unless approved in writing by the Firm.
• Lock screens when away, keep devices updated, and avoid public Wi-Fi without a Firm-approved VPN.
• Report any suspected data breach, lost device, or unauthorized access to the Firm immediately.
• Return or permanently destroy all Taxpayer Information, and confirm in writing, when this relationship ends.

4. Duration

These obligations continue indefinitely after the relationship ends.

---

Conduct & Due Diligence Acknowledgment

Preparer Standards

I, [your name], PTIN [your PTIN], acknowledge and agree that:

1. I will complete Form 8867 and keep supporting documentation for every return claiming EITC, CTC/ACTC/ODC, AOTC, or head of household status.
2. I will ask follow-up questions when client information appears incorrect, inconsistent, or incomplete, and will document the answers.
3. I understand that each due diligence failure can result in an IRS penalty under §6695(g), assessed per credit, per return.
4. I will sign every return I prepare with my own PTIN and will never use another preparer's PTIN or credentials.
5. I will not alter a client's return, refund amount, refund method, or bank information without the client's documented consent.
6. I will submit every return for Firm review and will not transmit any return without Firm approval.
7. I will complete the Firm's bank products training, follow each bank product provider's rules, give clients all required disclosures, and never pressure a client to choose a bank product.
8. I will not charge fees based on a percentage of a client's refund or collect any payment directly from a client.
9. I will treat every client with honesty, professionalism, and respect, consistent with the Royal Financial standard.

---

Direct Deposit Authorization

Weekly Contractor Payments

I, [your name], authorize Royal Financial to deposit my weekly contractor payments into the account below by ACH. If a deposit is made in error, I authorize the Firm to reverse it.

Account holder name
Bank name
Routing number (9 digits)
Account number
Confirm account number
Account type	Checking Savings
Business account?	No Yes

Upload a voided check or your bank's direct deposit form showing the routing and account numbers. Payments begin the first weekly pay cycle after this form and your verification document are received.

This authorization stays in effect until I give the Firm written notice to change or cancel it, allowing a reasonable time to act on it. Account changes must be submitted on a new form, never by email or text.