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Closing Agreement on Final Determination

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Employment Agreement with Church Business Administrator

Employment agreement made this day of of , 20 , between

Main Street Community Church, a Sec. 501(c)(3) organization of the Internal Revenue Code, a nonprofit Church Corporation organized and existing under the laws of

(Name of State)

with its principal office located at

(Street Address, City, County, State, Zip Code)

referred to herein Church, and ,

(Name of Employee)

of , referred to herein Employee.

(Street Address, City, County, State, Zip Code)

I. Employment; Duties.

A. The Church employs the Employee as its Business Administrator, and the Employee accepts such employment. The Employee's duties include, but are not limited to, the following:

• provide a consistent presence in the church office, so that callers and visitors will have an accurate and reliable source of information;

• support and nurture relationships among congregation members, and between the church and the wider community;

• work in partnership with office volunteers who staff the church office each morning (Monday - Thursday);

• in cooperation with relevant leaders, manage the church’s website and email communications, and continue to develop our social media presence;

• maintain a master calendar for the church, especially for the regularly occurring events, ministries and programs that knit together the community;

• assist in producing weekly church bulletins and other church publications as necessary;

• serve as support staff for church committees and boards;

• serve as the liaison between the church and groups who use the building, and coordinate building use;

• Such other reasonable matters related to the purposes of the Church as the officers and directors of the Church delegate to the Employee as or may be provided for in the Bylaws of the Corporation.

II. Compensation. The Church shall pay the Employee a salary of $ per month. The Church must withhold FICA and federal income tax in accordance with law.

III. Expenses. The Church shall reimburse the Employee for all reasonable and necessary expenses which he may incur relative to his services for the Church, including but not limited to travel, telephone, postage, typing, and copying expenses. The Church will provide reimbursement within days of submission by the Employee to the treasurer or any other officer of the Church of documentation supporting expenditures. The Employee will submit all documentation for an expense within days after the expense is incurred.

IV. Term. The term of this agreement will commence, and the Employee's salary will commence, on , and will continue until terminated, with or without cause, by either party on written notice to the other.

V. No Other Employment. The Employee is required to refrain from acting in any other work capacity or employment without having first obtained the written consent of the Church. It is the Church's intention that the Employee devotes all of the Employee's work effort towards the fulfillment of the Employee's obligations under this Agreement.

VI. Disclosure of Information. The Employee agrees that any information received by the Employee during his employment, which concerns the personal, financial, or other affairs of the Church or its customers will be treated by the Employee in full confidence and will not be revealed to any other persons, firms or organizations.

VII. Hours of Employment. The Employee is expected to work at least hours per day and hours per week, Monday to Friday. The working hours are normally to but may be determined differently by the Church from time to time. The Employee is allowed minutes for lunch with the time designated for lunch to be determined by the Church.

VIII. Compensation. The Church shall pay the Employee $ per week as salary in accordance with this Agreement. The payments will be made on of each week.

IX. Benefits.

A. Holidays.

1. The Employee will be entitled to paid holidays each year plus personal days. The Church will notify the Employee as much in advance as practical with respect to the holiday schedule. The holidays which are generally observed by the Church are as follows: New Year's Day, Washington's Birthday, Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day, Thanksgiving Day, the Friday following Thanksgiving, and Christmas Day. Additional holidays may be allowed in connection with holidays which fall on weekends.

2. The personal days are to be scheduled in advance to the mutual convenience of the Employee and the Church. Such personal days must be taken during the calendar year and cannot be carried forward into the next year.

3. The Employee will not be entitled to any personal days unless the Employee has been employed for a period of during the calendar year. If the Employee has been employed for less than the required time, the Church may, in its own discretion, allow the Employee a reduced number of personal days.

B. Vacations.

1. The Employee will be entitled to vacations after the first months of employment with the Church. As of of any year the Employee is eligible for vacation as follows:

Length of Service        Days of Vacation

Six months but less than one year    Two days

One year but less than two years    Five days

Two years but less than five years    10 days

Five years but less than 10 years    15 days

10 years or more    20 days

2. Vacation pay is based upon normal pay for a -hour work week without consideration for bonuses or other supplemental compensation.

C. Sick Leave. The Employee is allowed sick days per year. Sick days are not cumulative and may not be carried from year to year.

D. Emergency Leave. If a member of the Employee's immediate family dies or becomes critically ill, the Employee will be allowed up to days of leave with pay. Additional time may be granted, without pay, upon approval of the Church.

X. Termination of Employment. Either party may terminate this Agreement and the employment under this Agreement without cause and at any time upon days' written notice by certified or registered mail to the other party at the address set forth above. This Agreement will be automatically terminated upon the death of the Employee.

XI. Severability. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

XII. No Waiver. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

XIII. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of

XIV. Notices. Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

XV. Attorney’s Fees. In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

XVI. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the contrary, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

XVII. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

XVIII. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

XIX. Assignment of Rights. The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

WITNESS our signatures as of the day and date first above stated.

(Name of Church)

By:

(Printed Name of Employee)

(Signature of Employee)

 

(Printed Name & Office in Corporation)

(Signature of Officer)

Enter text✕

What the Closing Agreement on Final Determination Is

A Closing Agreement on Final Determination is a mutually executed document that records an agreed resolution of a tax matter between the taxpayer and the Internal Revenue Service. It documents the parties, the tax periods or issues covered, the agreed adjustments or payments, and any releases or waivers. Once properly executed it normally produces finality for the covered items and limits further administrative contest on those matters, subject to statutory exceptions and appeals rules under the Internal Revenue Code and IRS practice.

Why a Closing Agreement Matters

The agreement provides certainty by memorializing concessions, agreed tax liability, payment terms, and releases that reduce future audit exposure and litigation risk. It clarifies obligations for both parties and can streamline collection or refund processing when executed correctly.

Why a Closing Agreement Matters

Who typically prepares and signs these agreements

The Closing Agreement is used by taxpayers, authorized representatives, and the IRS to resolve specific tax issues without further controversy.

  • Corporate taxpayers and CFOs with authority to bind the entity in tax matters, often coordinating with tax directors or in-house counsel.
  • Tax professionals and CPAs preparing supporting schedules, providing legal and factual analysis, and confirming statute of limitations implications.
  • Tax attorneys representing clients in settlement negotiations, drafting precise release language, and confirming appellate consequences.

Users should ensure signatory authority and documentation are in place before execution to avoid disputes over capacity or consent.

Core elements to include in a professional closing agreement

A clear document structure reduces ambiguity and supports enforceability. Key sections should define the parties, scope, tax periods, mutual findings, payment or offset terms, releases, and execution details.

Parties

Identify each taxpayer or entity precisely by legal name, taxpayer identification number, and authorized representative to avoid ambiguity in enforcement or future audits.

Scope

Describe the tax periods, issues, and adjustments being settled in specific language so the agreement cannot be read to cover unintended matters.

Agreed Determination

State the agreed amounts, computations, or adjustments with references to supporting schedules, exhibits, or workpapers that are incorporated by reference.

Payment Terms

Specify payment amounts, due dates, offsets, installment plans, or setoff mechanisms and the consequences of late or missed payments.

Releases and Reservations

Include any releases of claims, reserved issues, and statements limiting the agreement's finality to the listed matters to preserve other rights.

Execution Block

Provide signature lines with printed names, titles, dates, and witness or notary blocks if required by the parties or applicable law.

Step-by-step: preparing and executing the agreement

Follow a predictable sequence to prepare, review, sign, and retain the executed agreement to ensure enforceability and compliance with statutory timelines.

  • 01
    Gather records: Collect returns, schedules, and supporting workpapers before drafting.
  • 02
    Draft terms: Prepare clear language covering scope, amounts, and releases.
  • 03
    Legal review: Have counsel and tax advisors confirm legal and tax consequences.
  • 04
    Execute and file: Obtain signatures, notarize if needed, and preserve the final copy.

Configuring a secure e-sign workflow

Set authentication, field behavior, and delivery options before sending to minimize signer friction and preserve an audit-ready record.

Field Configuration
Authentication Email link, SMS code, or advanced ID verification
Signature type Typed, drawn, or uploaded image per policy
Audit trail Capture IP, timestamp, and action log
Delivery Email copy and store a PDF in repository

Typical e-submission lifecycle for a closing agreement

The e-submission lifecycle tracks preparation through final storage; each stage creates records needed for enforceability and retention.

  • Upload document: Start with a PDF or DOCX master copy.
  • Place fields: Add signature, date, and initial fields.
  • Authenticate signers: Use email, SMS, or stronger verification.
  • Finalize: Capture signed PDF and audit certificate.

Technical and integration considerations for e-signing

Choose a platform that supports required file formats, audit trails, and your organization’s authentication needs.

  • File formats: PDF, DOCX, and common office files
  • Integrations: CRM and storage connectors
  • Authentication options: Email, SMS, or KBA

Integration with document repositories and enterprise systems (CRM, ERP, cloud storage) simplifies storage, retrieval, and compliance reporting.

Timing considerations and statutory deadlines

Be mindful of statute of limitations, appeal windows, and payment due dates when finalizing a closing agreement to preserve rights and obligations.

Statute of limitations:

Standard IRS assessment period is 3 years (IRC §6501(a)); longer periods apply for substantial understatement.

Appeals and protest timing:

Observe IRS protest and appeals deadlines to avoid waiving contest rights.

Payment due date:

Specify when agreed payments are due and how interest accrues if overdue.

Filing executed agreement:

Retain executed instrument per internal and regulatory rules; some agreements are retained by IRS as administrative records.

Record retention:

Keep supporting records for the relevant retention period to support future inquiries.

Common pitfalls to avoid when preparing the agreement

  • Failing to identify the correct legal entity or taxpayer identification number, which can invalidate the agreement for the intended party.
  • Using vague scope language that appears to settle unintended issues or omits necessary tax periods and exhibits.
  • Permitting signers without clear authority or failing to include a corporate resolution where required for entity execution.
  • Neglecting to capture an adequate audit trail or to require appropriate signer authentication prior to electronic execution.

Key legal and financial risks from an incorrect agreement

Loss of rights: Waiver of appeal options
Enforcement: Collection actions for unpaid agreed amounts
Penalties: IRC penalties may still apply
Tax exposure: Unresolved issues may be reopened under exceptions
Contract invalidity: Insufficient authority can void agreement
Data risks: Inadequate records hamper future defenses

Security and compliance controls to require

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit trail: Comprehensive log with timestamps and IP
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA support: BAA available for protected health information
21 CFR Part 11: Features to meet FDA-regulated workflows
ESIGN / UETA: Meets federal and state e-signature rules

Comparison of common eSignature providers for executing closing agreements

Pricing and feature availability vary by plan; the table below shows starting price and common feature indicators to consider when selecting an eSignature provider.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes (Business Premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Varies by plan Varies by plan Varies by plan Varies by plan
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Practical examples of how parties use closing agreements

The following scenarios illustrate common ways closing agreements resolve disputes and document final tax positions.

CPA Firm Settlement

An accounting firm and taxpayer agree on adjustments to prior returns

  • The agreement specifies the computations and payment schedule
  • The result closes the audit for those periods and documents concessions for both parties, reducing further administrative dispute.

Small Business Resolution

A small business negotiates to settle payroll tax discrepancies

  • Payment is structured in installments with interest
  • The signed closing agreement prevents further IRS adjustment of the settled items, subject to statutory exceptions.

Practical tips for a clean, enforceable agreement

Adopt consistent drafting and execution practices to minimize ambiguity and preserve rights after the agreement is signed.

Use precise language
Draft the settlement scope and findings in specific terms, cite exhibits and computations, and avoid catch-all phrases that could be read to settle unrelated items.
Confirm signatory authority
Obtain corporate resolutions or powers of attorney when an entity signs; verify the individual’s title and signing capacity to prevent later invalidation.
Preserve the audit trail
Capture timestamps, signer authentication, and a downloadable certificate of completion for any electronic execution to support admissibility and challenge prevention.
Coordinate payment mechanics
Specify payment method, due dates, interest on arrears, and remedies for nonpayment to reduce later enforcement disputes.

Frequently asked questions about Closing Agreements and e-signatures

Answers to common questions on validity, execution, and practical concerns when using electronic signing for closing agreements.


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