Terms of Service

1. Scope of Services

Decrypted Tax provides digital asset tax reconciliation and preparation services, including but not limited to:

• Blockchain transaction aggregation and reconciliation
• Wallet tracing and cost-basis reconstruction
• NFT acquisition, disposition, royalty, and airdrop analysis
• Staking and validator reward classification
• DeFi protocol transaction mapping
• Cross-chain and bridge transaction tracking
• Preparation of Forms 8949, Schedule D, Schedule C, and related filings

Unless separately agreed in writing, services do not include audit defense, legal opinions, forensic blockchain investigation, or litigation support.

2. Professional Standards

Services are performed in accordance with:

• Treasury Department Circular 230 (31 C.F.R. Part 10)
• Internal Revenue Code §6694
• Internal Revenue Code §7216
• AICPA Statements on Standards for Tax Services (SSTS), where applicable

Tax advice is based on information provided by Client and applicable authority at the time of preparation. No guarantee is made that taxing authorities will accept reported positions.

3. Client Responsibilities

Client represents that:

• All wallet addresses, exchange accounts, and digital asset holdings have been fully disclosed.
• All data provided is accurate and complete.
• Client will review all filings prior to submission.

Client remains responsible for omissions, undisclosed wallets, lost private keys, or inaccurate exchange exports.

4. Software Reliance and Algorithmic Processing

Digital asset reconciliation relies on:

• Commercial crypto tax software
• Blockchain indexing services
• Automated transaction classification systems
• Algorithmic cost-basis reconstruction models

These systems may infer relationships between transactions and apply standardized tax treatment to complex DeFi or NFT activity.

Blockchain data is pseudonymous and may be incomplete or inconsistent. Manual forensic review of each transaction is not included unless separately contracted.

Decrypted Tax does not warrant that third-party software outputs are error-free.

5. Digital Asset Volatility and Regulatory Uncertainty Disclaimer

Digital assets are highly volatile and subject to:

• Significant price fluctuations
• Smart contract vulnerabilities
• Exchange insolvency or hacking events
• Regulatory changes
• Retroactive tax guidance

Tax reporting positions related to staking, DeFi, NFT royalties, wrapped tokens, bridge events, and protocol upgrades may be affected by future IRS guidance or judicial interpretation.

Client acknowledges that:

• Tax treatment of certain digital asset transactions remains unsettled.
• Subsequent guidance may differ from positions taken at time of filing.
• Market value fluctuations do not alter tax recognition events once triggered under applicable law.

6. IRC §6694 Preparer Standards

Company will not take positions that fail to meet applicable authority thresholds under §6694.

If disclosure is required to meet preparer standards, Client authorizes such disclosure where legally permitted.

Company may decline to report positions it determines do not meet required authority levels.

7. Audit Defense

Audit representation is not included unless separately engaged.

In the event of examination, Company may provide workpapers and methodology explanations at additional cost.

No guarantee is made regarding audit outcomes.

8. Data Security and Breach Allocation

Company implements commercially reasonable safeguards, including encryption, access controls, and vendor confidentiality agreements.

Client acknowledges:

• No electronic system is entirely secure.
• Blockchain transaction histories are permanently public.
• Company does not control third-party exchanges or blockchain explorers.

Company is not liable for cyber incidents arising from:

• Client device compromise
• Exchange hacks
• Phishing attacks
• Smart contract vulnerabilities

In the event of confirmed breach of nonpublic tax return information maintained by Company, notice will be provided consistent with Utah Code Title 13, Chapter 44 and applicable federal law.

9. Limitation of Liability

To the fullest extent permitted under Utah law:

1. Fees paid for the tax year giving rise to the claim; or
2. $5,000

This limitation reflects allocation of risk proportional to engagement fees.

10. Class Action Waiver

All disputes must be brought individually.

Client waives any right to participate in class, collective, consolidated, or representative proceedings.

11. Mandatory Arbitration and Utah Venue

All disputes shall be resolved exclusively by binding arbitration in Washington County, Utah, under the Federal Arbitration Act.

Arbitration shall be conducted before a single arbitrator.

Parties waive trial by jury.

Utah law governs this Agreement.

12. Use of Third-Party and Non-U.S. Service Providers

Certain reconciliation or administrative functions may be performed by third-party vendors or qualified personnel located outside the United States, subject to confidentiality agreements and security safeguards.

13. ELECTRONIC CONSENT AND §7216 DISCLOSURE AUTHORIZATION

Electronic Agreement

Client agrees that electronic acceptance constitutes legally binding consent under the Utah Uniform Electronic Transactions Act (Utah Code §46-4-101 et seq.).

§7216 CONSENT TO DISCLOSURE AND USE OF TAX RETURN INFORMATION

IMPORTANT FEDERAL LAW REQUIRES THIS CONSENT FORM TO BE PROVIDED TO YOU. YOU ARE NOT REQUIRED TO COMPLETE THIS FORM. IF WE OBTAIN YOUR SIGNATURE ON THIS FORM BY CONDITIONING OUR SERVICES ON YOUR CONSENT, YOUR CONSENT WILL NOT BE VALID. IF YOU AGREE TO THE DISCLOSURE OF YOUR TAX RETURN INFORMATION, YOUR TAX RETURN INFORMATION MAY BE DISCLOSED TO AND USED BY THE PERSONS OR ENTITIES IDENTIFIED IN THIS FORM.

Federal law (26 U.S.C. §7216) prohibits tax return preparers from disclosing or using tax return information without your written consent.

By accepting this Agreement, you authorize Decrypted Tax to disclose and use your tax return information for the purpose of:

• Processing blockchain transaction data
• Reconciling digital asset transactions
• Utilizing third-party crypto tax software platforms
• Transmitting information to cloud storage providers
• Engaging qualified personnel (including those located outside the United States) to assist in tax preparation services

Your consent is valid for the duration of the engagement and any required record-retention period unless you revoke it in writing.

You may revoke this consent at any time by written notice, except to the extent action has already been taken.

If you do not consent, certain services requiring third-party processing may not be available.

14. Severability

If any provision is found unenforceable, remaining provisions remain in effect.

15. Entire Agreement

This Agreement constitutes the entire understanding between the parties regarding services provided.