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Terms of Service — Version 3.3 (governs until November 30, 2026)

Contents
  1. 1. Acceptance of Terms
  2. 2. Nature of Services — Technology Platform Only
  3. 3. AI Services, Accuracy & Human Review Requirement
  4. 4. Client Intake, Engagement Letters & Consent
  5. 5. Account Registration and Eligibility
  6. 6. Subscription and Payment
  7. 7. Permitted Use and Restrictions
  8. 8. Data Ownership and Intellectual Property
  9. 9. Confidentiality
  10. 10. Representations and Warranties
  11. 11. Limitation of Liability
  12. 12. Indemnification
  13. 13. Term and Termination
  14. 14. Dispute Resolution
  15. 15. General Provisions
  16. 16. WISP Assessment and Compliance Services
  17. 17. Contact Information

Last Updated: October 20, 2026 (v3.3)

1. Acceptance of Terms

These Terms of Service (“Terms”) constitute a legally binding agreement between you and TaxScout.AI Inc. (“TaxScout.AI,” “we,” “us,” or “our”) governing your access to and use of the TaxScout.AI platform, website, applications, client portal, APIs, and all related services (collectively, the “Services”).

Together with our Privacy Policy, Data Processing Agreement (DPA), and any Order Forms or Subscription Agreements, these Terms form the complete Agreement. By accessing or using our Services, you accept this Agreement.

If you are entering into these Terms on behalf of a company or other legal entity, you represent that you have the authority to bind such entity.

2. Nature of Services — Technology Platform Only

2.1 TaxScout.AI Is a Technology Platform

TAXSCOUT.AI PROVIDES SOFTWARE SOLUTIONS AND AI-ASSISTED TECHNOLOGY TOOLS ONLY. WE ARE NOT A CPA FIRM, TAX RETURN PREPARER, ENROLLED AGENT, OR TAX ADVISOR. WE DO NOT HOLD A PTIN AND DO NOT SIGN OR FILE TAX RETURNS. USE OF THE SERVICES DOES NOT CONSTITUTE TAX ADVICE OR THE PRACTICE OF ACCOUNTANCY. THE CPA FIRM (CUSTOMER) RETAINS FULL PROFESSIONAL RESPONSIBILITY FOR ALL SERVICES PROVIDED TO ITS CLIENTS, INCLUDING THE ACCURACY, COMPLETENESS, AND FILING OF ALL TAX RETURNS.

2.2 Platform Capabilities

TaxScout.AI enables CPA firms to:

  • Upload and process client tax documents using artificial intelligence
  • Automatically extract, classify, and organize tax data from source documents
  • Generate reviewer-ready tax return drafts with AI-written preparation notes
  • Identify anomalies, discrepancies, and potential issues for practitioner review
  • Export processed data in standard formats compatible with tax preparation workflows
  • Manage document workflows and client communications through a secure client portal
  • Send and manage engagement letters with electronic signatures and audit trails

3. AI Services, Accuracy & Human Review Requirement

3.1 AI Output Disclaimer

AI SERVICES & ACCURACY DISCLAIMER: The Services utilize artificial intelligence and machine learning technologies (“AI Features”) to extract data and generate suggestions. YOU ACKNOWLEDGE THAT AI FEATURES MAY PRODUCE INACCURATE OR INCOMPLETE RESULTS (“AI ERRORS” OR “HALLUCINATIONS”). YOU AGREE THAT YOU (THE CPA FIRM) ARE SOLELY RESPONSIBLE FOR REVIEWING, VERIFYING, AND CORRECTING ANY OUTPUT GENERATED BY THE AI FEATURES BEFORE RELYING ON IT, SUBMITTING IT TO ANY TAX AUTHORITY, OR COMMUNICATING IT TO ANY TAXPAYER. TAXSCOUT.AI DISCLAIMS ALL LIABILITY FOR ERRORS IN TAX RETURNS, TAX PENALTIES, INTEREST, OR ANY OTHER CONSEQUENCES RESULTING FROM UNVERIFIED AI OUTPUT.

3.2 Mandatory Human Review

The Customer agrees that:

  • All AI-generated outputs, including data extractions, form populations, and preparation notes, are preliminary drafts only
  • A qualified tax professional (CPA, EA, or PTIN holder) must review, verify, and approve every AI output before filing
  • No tax return shall be filed based solely on AI output without human professional review
  • The CPA firm bears sole responsibility for the professional judgment applied to each tax return
  • The CPA firm shall not represent to its Clients that AI outputs are final or guaranteed accurate

3.3 No Tax Advice

Nothing in the AI outputs constitutes tax advice, legal advice, or professional accounting advice. AI outputs are data processing results, not professional opinions.

4.1 CPA Firm’s Client Engagement Obligation

The CPA firm (Customer) agrees that before uploading any Client’s tax return information to TaxScout.AI:

  • The CPA firm has executed an appropriate engagement letter with the Client
  • The engagement letter includes a Technology Platform Acknowledgment disclosing the use of TaxScout.AI and AI-assisted processing
  • The Client has been informed that TaxScout.AI is a technology platform and not their tax advisor
  • The CPA firm has obtained all consents required under their professional standards and applicable law

4.2 TaxScout.AI Engagement Letter Tools

TaxScout.AI provides CPA firms with:

  • Customizable engagement letter templates with Technology Platform Acknowledgment language
  • Electronic signature capability with Documenso integration, including full audit trails
  • Signing certificates capturing signer identity, IP address, timestamp, and device information

CPA firms are encouraged to obtain express §7216 consent from their clients where required under their specific circumstances, consistent with Revenue Procedure 2013-14.

Before any Client can access the TaxScout.AI Client Portal to upload documents or communicate with their CPA firm:

  • The Client must agree to TaxScout.AI’s Terms of Service and Privacy Policy (displayed at portal login)
  • All portal activity is logged with IP address and device information for audit purposes
  • Clients who provide a mobile phone number may opt in to receive transactional SMS/text notifications regarding tax return status, document requests, and signature requests. SMS consent is optional and not required to use the Services.

4.4 Client Data Protection

The CPA firm acknowledges that as between the CPA firm and its Clients, the CPA firm is the data controller and bears primary responsibility for Client data protection. TaxScout.AI acts as a data processor on behalf of the CPA firm.

5. Account Registration and Eligibility

5.1 Eligibility

The Services are available only to CPA firms, accounting practices, and individual tax professionals who hold valid professional credentials as required by applicable law.

5.2 Account Security

  • Use strong, unique passwords and enable MFA
  • Promptly notify us of any unauthorized access
  • Ensure only authorized firm personnel access the Services

6. Subscription and Payment

6.1 Subscription Plans

Access requires a paid subscription. Your plan and any add-ons you buy (for example Advisory, Storage or the Retained Archive Plan) renew automatically at the end of each billing period, monthly or annually as shown when you subscribe, until you cancel. Before you subscribe we show you the price, the billing frequency and how to cancel, and we ask for your consent to automatic renewal. For annual subscriptions we email you a reminder before each renewal. We give you at least sixty (60) days’ notice by email before a price change takes effect for your subscription, and you may cancel before it does.

6.2 Payment Terms

  • Fees billed in advance (monthly or annually)
  • Processed through PCI-compliant payment processor
  • Non-refundable except as expressly stated
  • TaxScout.AI reserves the right to charge interest on overdue balances at a rate of 1.5% per month (or the maximum rate permitted by applicable law, whichever is lower)
  • Access may be suspended for overdue accounts after fifteen (15) days’ notice

7. Permitted Use and Restrictions

7.1 Permitted Use

You may use the Services solely for lawful tax preparation and related professional services.

7.2 Restrictions

  • No reverse engineering, decompilation, or derivative works
  • No sublicensing, resale, or transfer of access
  • No use to develop competing products
  • No upload of malicious code
  • No circumvention of security features
  • No processing for purposes other than tax return preparation
  • No pasting of taxpayer data into public AI chatbots (ChatGPT, Gemini, etc.)

8. Data Ownership and Intellectual Property

8.1 Your Data

You retain all ownership rights in your data. All tax return information, client documents, and other data you upload remains your property (or your Clients’ property).

8.2 License to Provide Services

You grant TaxScout.AI a limited, non-exclusive, revocable license to process Your Data solely to provide the Services.

8.3 Aggregate Data

TaxScout.AI may generate de-identified, anonymized Aggregate Data that cannot identify any individual taxpayer. TaxScout.AI owns Aggregate Data.

8.4 TaxScout.AI IP

All rights to the Services, software, AI models, and trademarks are TaxScout.AI’s exclusive property.

9. Confidentiality

Each party agrees to hold the other’s Confidential Information in confidence. Tax return information is treated as Confidential Information of the highest sensitivity. Exceptions apply for publicly available information, prior knowledge, third-party receipt, or independent development.

10. Representations and Warranties

10.1 TaxScout.AI Warranties

  • Services will perform materially in accordance with documentation
  • Appropriate security measures consistent with industry standards
  • Processing in compliance with IRC §7216 and applicable data protection laws

10.2 Customer Warranties

  • You hold all necessary professional licenses and credentials
  • You have executed appropriate engagement letters with your Clients, including Technology Platform Acknowledgment
  • You have obtained all necessary consents from Clients for data processing
  • You will review and verify all AI outputs before filing any tax return
  • You will use the Services only for lawful purposes in compliance with professional standards

10.3 Disclaimer

EXCEPT AS EXPRESSLY STATED, THE SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE.” TAXSCOUT.AI DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. AI-GENERATED OUTPUTS ARE NOT A SUBSTITUTE FOR PROFESSIONAL TAX JUDGMENT AND MAY CONTAIN ERRORS.

11. Limitation of Liability

11.1 Aggregate Cap

TAXSCOUT.AI’S TOTAL AGGREGATE LIABILITY SHALL NOT EXCEED THE AMOUNTS PAID BY YOU DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

11.2 Exclusion of Consequential Damages

IN NO EVENT SHALL TAXSCOUT.AI BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS, DATA, OR GOODWILL.

11.3 Specific AI Liability Exclusion

WITHOUT LIMITING THE FOREGOING, TAXSCOUT.AI SHALL NOT BE LIABLE FOR: (A) ERRORS IN AI-GENERATED OUTPUTS THAT WERE NOT REVIEWED BY A QUALIFIED TAX PROFESSIONAL BEFORE FILING; (B) TAX PENALTIES, INTEREST, OR AUDIT COSTS RESULTING FROM UNVERIFIED AI OUTPUTS; (C) ANY CONSEQUENCES OF THE CPA FIRM’S FAILURE TO REVIEW AI OUTPUTS; OR (D) ANY CLAIMS BY TAXPAYERS ARISING FROM TAX RETURNS PREPARED USING THE SERVICES.

11.4 Exceptions

These limitations do not apply to: (a) breach of confidentiality; (b) indemnification obligations; (c) willful misconduct or gross negligence; or (d) TaxScout.AI’s breach of §7216 compliance obligations.

12. Indemnification

12.1 By TaxScout.AI

TaxScout.AI will indemnify you from third-party IP infringement claims arising from the Services used in accordance with this Agreement.

12.2 By the CPA Firm (Customer)

YOU (THE CUSTOMER/CPA FIRM) AGREE TO INDEMNIFY, DEFEND, AND HOLD TAXSCOUT.AI HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, LIABILITIES, AND EXPENSES (INCLUDING REASONABLE ATTORNEY’S FEES) BROUGHT BY YOUR CLIENTS (TAXPAYERS) OR ANY THIRD PARTY ARISING OUT OF: (A) YOUR USE OF THE SERVICES; (B) YOUR BREACH OF THIS AGREEMENT; (C) YOUR VIOLATION OF APPLICABLE LAW OR PROFESSIONAL STANDARDS; (D) YOUR FAILURE TO REVIEW OR VERIFY AI-GENERATED OUTPUTS; (E) ERRORS IN TAX RETURNS PREPARED USING THE SERVICES; (F) TAX PENALTIES, INTEREST, OR AUDIT CONSEQUENCES EXPERIENCED BY YOUR CLIENTS; (G) YOUR FAILURE TO OBTAIN APPROPRIATE CLIENT CONSENTS; OR (H) ANY CLAIMS REGARDING DATA ACCURACY, PRIVACY, OR SECURITY ARISING FROM YOUR USE OF THE SERVICES.

13. Term and Termination

13.1 Term

Your subscription begins when you subscribe and renews automatically for periods of the same length until cancelled. You can cancel any subscription at any time online, in one click, under Organization → Billing in the app; you may also cancel by emailing support@taxscout.ai. No written notice, notice period, call or other step is required. Cancellation takes effect at the end of the current paid period: you keep access until then and are not charged again. We confirm every cancellation by email.

13.2 Termination for Cause

Either party may terminate for material breach not cured within thirty (30) days, insolvency, or bankruptcy.

13.3 Effect of Termination

  • Access suspended upon termination
  • Data export available for thirty (30) days
  • Data deleted per Privacy Policy
  • Accrued fees remain payable
  • Sections 2, 3, 8, 9, 10.3, 11, 12, 14, 15, and 16 survive termination

14. Dispute Resolution

Governed by Delaware law. Disputes resolved by binding arbitration (AAA Commercial Rules) in Wilmington, DE. Either party may seek injunctive relief for IP or confidentiality protection.

15. General Provisions

  • Entire Agreement: Supersedes all prior agreements.
  • Amendments: Thirty (30) days’ notice for changes. Continued use = acceptance, except that changes to the price or renewal terms of your subscription apply only as described in Section 6.1.
  • Assignment: No assignment without consent; TaxScout.AI may assign in M&A.
  • Severability: Invalid provisions do not affect remaining terms.
  • Force Majeure: Neither party liable for causes beyond reasonable control.
  • Notices: Written notices to legal@taxscout.ai. We may also communicate with you via email, in-app notifications, and, if you opt in, SMS/text messages. By opting in to SMS, you consent to receive transactional messages at the number provided. Message and data rates may apply. Reply STOP to opt out. Reply HELP for help. Cancelling a subscription does not require a written notice; see Section 13.1.
  • Independent Contractors: No employment, agency, or partnership created.

16. WISP Assessment and Compliance Services

16.1 WISP Assessment Tool

TaxScout.AI provides a Written Information Security Plan (WISP) assessment wizard based on the framework described in IRS Publication 5708. This tool allows tax professionals to evaluate their firm’s security posture by answering a series of questions about their information security practices. The assessment generates a security score and gap analysis based on the responses provided.

16.2 Not Legal or Compliance Advice

THE WISP ASSESSMENT TOOL, GENERATED WISP DOCUMENTS, AND ANY ASSOCIATED CERTIFICATES ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY. THEY DO NOT CONSTITUTE LEGAL ADVICE, CYBERSECURITY CONSULTING, OR A GUARANTEE OF REGULATORY COMPLIANCE WITH THE IRS, FTC SAFEGUARDS RULE, OR ANY STATE DATA PROTECTION LAW. TAXSCOUT.AI IS NOT A LAW FIRM, CYBERSECURITY FIRM, OR COMPLIANCE AUDITOR. YOU SHOULD CONSULT WITH A QUALIFIED ATTORNEY OR IT SECURITY PROFESSIONAL BEFORE RELYING ON ANY WISP DOCUMENT FOR REGULATORY COMPLIANCE PURPOSES.

16.3 Self-Reported Information

The WISP assessment is based entirely on information self-reported by the user. TaxScout.AI does not independently verify the accuracy of responses unless the user has separately engaged TaxScout.AI for a professional IT assessment under a TaxScout Support managed services agreement. The accuracy, completeness, and reliability of the WISP document depends entirely on the accuracy of the information you provide. You are solely responsible for verifying that your responses accurately reflect your firm’s actual security practices.

16.4 Certificates

TaxScout.AI may issue a “Certificate of WISP Completion” or “Certificate of WISP Verification” to subscribers who complete the WISP creation and signing process on the platform. These certificates confirm that the user completed the TaxScout.AI WISP process. They do not certify compliance with any federal, state, or local regulation, including the IRS, FTC Safeguards Rule, or any state data protection law. Certificates are issued by TaxScout.AI Inc. and are not endorsed, approved, or issued by the IRS, FTC, or any government agency. The “Certificate of WISP Verification” indicates that a TaxScout.AI IT professional conducted a security assessment; it does not guarantee regulatory compliance.

16.5 WISP Services Agreement

Before generating a Certificate of WISP Completion or Certificate of WISP Verification, the user must accept the WISP Services Agreement presented within the TaxScout.AI dashboard. This agreement sets forth additional terms specific to the WISP services, including acknowledgments regarding self-reported data, limitations on the certificate’s scope, and the user’s sole responsibility for implementing and maintaining the security measures described in the WISP.

16.6 Limitation of Liability for WISP Services

WITHOUT LIMITING SECTION 11 OF THESE TERMS, TAXSCOUT.AI SHALL NOT BE LIABLE FOR: (A) ANY DATA BREACH, REGULATORY PENALTY, FINE, OR OTHER LOSS ARISING FROM RELIANCE ON A WISP DOCUMENT OR CERTIFICATE GENERATED THROUGH THE SERVICES; (B) THE ACCURACY OR COMPLETENESS OF SELF-REPORTED ASSESSMENT DATA; (C) ANY FAILURE BY THE USER TO IMPLEMENT, MAINTAIN, OR UPDATE SECURITY MEASURES DESCRIBED IN THE WISP; (D) ANY CLAIM BY A REGULATORY AUTHORITY, INSURER, OR THIRD PARTY THAT THE USER’S SECURITY PRACTICES DO NOT MEET APPLICABLE STANDARDS; OR (E) ANY CONSEQUENCES ARISING FROM THE USER’S RELIANCE ON A CERTIFICATE OF WISP COMPLETION OR VERIFICATION FOR REGULATORY, INSURANCE, OR OTHER COMPLIANCE PURPOSES.

16.7 User Responsibilities

The user is solely responsible for: (a) the accuracy and completeness of all information provided in the WISP assessment; (b) implementing, maintaining, and updating the security measures described in the generated WISP; (c) obtaining employee acknowledgements and signatures as required; (d) conducting annual reviews and updating the WISP as the firm’s security posture changes; (e) consulting with a qualified attorney or cybersecurity professional regarding the firm’s specific compliance obligations; and (f) ensuring the WISP meets the requirements of all applicable federal, state, and local laws.

17. Contact Information

TaxScout.AI Inc.

160 Alewife Brook Pkwy, Cambridge, MA 02138

Email: legal@taxscout.ai | Support: support@taxscout.ai

Website: www.taxscout.ai