Terms of Service

Terms of Service for Tax Year 2008 - 1040.com Online Tax Preparation
© 2008 Drake Software, All Rights Reserved.

Thank you for selecting the 1040.com Online Tax Preparation product ("1040.com OTP") to prepare your taxes. This license agreement (the "Agreement") is a contract between you and Drake Software and (Drake Software's service providers) that describes the terms and conditions applicable to your use of 1040.com OTP and associated services identified below. Before using 1040.com OTP, you must read and accept the terms and conditions contained in this Agreement. If you do not agree to these Terms of Service, you will not be able to use 1040.com OTP. The term "1040.com OTP" also includes any state version of 1040.com OTP.

IMPORTANT: Drake Software may change its usage fees for 1040.com OTP and any related services from time to time. Your fees will be determined based on the then-current prices for these services at the time you submit payment for your tax return.

1. License Grant. Drake Software grants a personal, limited, non-exclusive, non-transferable license to use 1040.com OTP solely to prepare a single valid federal and/or state tax return and, after proper registration and any applicable payment, to file electronically and/or print such federal and/or state tax return.

The terms "you", "your" or "user" are synonymous, and refer to the person using 1040.com OTP in any way. A "registered user" is a user from whom Drake Software has received the information necessary to permit such person to print or electronically file a tax return prepared using 1040.com OTP and who complies with the terms and conditions of this Agreement.

You must be a registered user:

(i) to be eligible for the guarantees described below; and

(ii) in order for Drake Software to save your tax return data for your future access.

Except as expressly stated above, you are not licensed or permitted to do any of the following:

(i) attempt to access any other Drake Software systems, programs or data that are not made available for public use;

(ii) prepare tax returns, schedules or worksheets on a professional or commercial basis (i.e., for a preparer's or other fee);

(iii) copy, reproduce, republish, upload, post, transmit, resell or distribute in any way the material from the 1040.com OTP site; or

(iv) attempt any actions that would prevent the use of 1040.com OTP by the public.

You agree that Drake Software and its service providers are not acting as your agent or fiduciary in connection with your use of 1040.com OTP or any Third Party Services.

2. Accuracy of Calculation Guarantee. Drake Software diligently works to ensure the accuracy of the calculations on every form prepared using 1040.com OTP. If you are a registered user and you pay an IRS or state penalty and/or interest solely because of a calculation error on a form prepared for you using 1040.com OTP, and not as a result of, among other things, your failure to enter all required information accurately, willful or fraudulent omission or inclusion of information on your tax return, misclassification of information on the tax return, or failure to file an amended return to avoid or reduce an applicable penalty/interest after Drake Software and its service providers announced updates or corrections to 1040.com OTP in time for you to file an amended return, then Drake Software will reimburse you in the amount of the IRS or state penalty and/or interest paid by you to the IRS or state. In this regard, you are responsible for keeping Drake Software apprised promptly of any change in your e-mail address, mailing address and/or phone number so that you can be notified of such updates or corrections.

If you believe such a calculation error occurred, please notify Drake Software in writing at Drake Software, c/o 1040.com OTP, 235 East Palmer Street, Franklin NC USA 28734, as soon as you learn of the mistake (and in no event later than 30 days after the penalty or interest is assessed). You must include (i) a copy of the IRS/state notice, (ii) evidence of payment of the specified penalty and/or interest, (iii) a copy of the applicable hardcopy tax return, and (iv) your user ID and password. You are responsible for paying any additional tax liability you may owe and providing any other information Drake Software reasonably requests.

3. Reservation of Rights and Ownership. Drake Software reserves all rights not expressly granted to you in this Agreement. 1040.com OTP is protected by copyright, trade secret and other intellectual property laws. Drake Software owns the title, copyright and other intellectual property rights in 1040.com OTP. 1040.com OTP is licensed, not sold. This Agreement does not grant you any rights to trademarks or service marks of Drake Software and its service providers.

You shall not decompile, disassemble, or otherwise reverse engineer 1040.com OTP except as otherwise permitted by applicable law notwithstanding this prohibition.

4. Drake Software Services and Third Party Services ("Services")

A. Drake Software Services.

Electronic Filing Services. If you choose to file your return electronically, the tax return will be forwarded to Drake Software's Electronic Filing Center, where it will be converted to and stored in a standardized format, and then transmitted to the applicable federal and/or state taxing authority. You are responsible for verifying the status of your return to confirm that it has been received and accepted by the applicable taxing authority and, if necessary, for filing it manually in the event that the taxing authority rejects your electronically filed return (e.g., taxpayer name and SSN don't match). You agree to review your tax return for indications of obvious errors before electronically filing or mailing it. Except to the extent required by applicable law, Drake Software may, but has no obligation to store, maintain or provide to you any information you provide to Drake Software and its service providers.

The IRS will begin accepting electronically filed returns on January 16, 2009. If you complete a federal tax return prior to that date and want to file it electronically, you will need to sign back in to 1040.com OTP on or after January 16, 2009 to complete the electronic filing process. The Internal Revenue Service ("IRS") requires Drake Software to notify it, in connection with the electronic filing of your tax return, of the Internet Protocol ("IP") address of the computer from which the return originated and whether the e-mail address of the person electronically filing the return has been collected. By using this Service to prepare and submit your tax return, you consent to the disclosure to the IRS and any other tax or revenue authority of all information relating to your use of the Electronic Filing Services.

B. Help and Support. Drake Software and its service providers may use a variety of methods (e.g., on-screen help, e-mail, fax and phone) to provide technical support and customer service in connection with 1040.com OTP and Drake Software Services. The terms and conditions governing the offering of this support are subject to change as announced by Drake Software from time to time. 1040.com OTP is not accessible after October 15 of each applicable tax year and shall not be supported beyond that date.

Drake Software and its service providers may provide you with a mechanism to provide feedback, suggestions and ideas, if you choose, about its online products and services ("Feedback"). You agree that Drake Software and its service providers may, in its sole discretion, use the Feedback you provide to Drake Software and its service providers in any way, including in future modifications of 1040.com OTP, multimedia works and/or advertising, and promotional materials relating thereto. You hereby grant Drake Software and its service providers a perpetual, worldwide, fully transferable, non-revocable, royalty-free license to use, modify, create derivative works from, distribute and display any information you provide to Drake Software and its service providers in the Feedback.

You are responsible for providing, at your expense, any access to the Internet and any required equipment. Further, Drake Software and its service providers may at any time change or discontinue any aspect, availability or feature of the Services.

Drake Software and its service providers may access and use any tax return and other information provided by you in order to perform the Services you purchase and, if necessary, to access such information to obtain contact information in order to provide notifications relating to 1040.com OTP and the Services to you.

5. User Name and Password Security. You are the only person authorized to use your user ID and password and for maintaining the confidentiality of your user ID and password. You shall not permit or allow other persons to have access to or use your user ID and password, except if you choose to provide that information to Drake Software's authorized technical support personnel, including its service providers, to assist you. You are responsible for the use of 1040.com OTP under your user ID. If you lose or forget your password, you must know both your user ID and the answer to your password security question in order to retrieve it. If you lose or forget either your user ID or the answer to your password security question, you will be required to submit a request to Drake Software Support with the specified information in order to retrieve your password. You must remember your user ID and password to electronically transfer your tax return information into next year's tax return.

Drake Software does not purge the user information database. If you wish to be removed and no longer receive e-mail correspondence from OTP services you may submit an e-mail to fileonline@1040.com identifying this and Drake Software will update your record to be excluded from any automated processes, as well as to disallow login rights for your user name.

You should confirm that the pricing for your use of 1040.com OTP has not changed, particularly if some time has passed between the date you start your tax return and the date you finish and are ready to file or print and pay for it.

6. Privacy of Personal and Tax Return Information. 1040.com OTP resides under a VeriSign certified Secure Socket Layer (SSL) URL and all subsequent web pages are verified through the secure connection of this SSL. Verification may be done by visiting the VeriSign web site or by clicking the VeriSign Security logo on the login screen. For details of Drake Software and its service provider's privacy policy relating to 1040.com OTP, you may go to www.1040.com. Details about the 1040.com OTP privacy policy, our information practices or other aspects of privacy are available here [Privacy Policy].

7. You may use 1040.com Online Tax Preparation software without charge up to the point you decide to print or electronically file your return. Upon completion of your federal return, you will be allowed to preview your federal 1040 form. The preview is solely of the 1040 form, and this preview is watermarked and should not be used to file a return. You will be required to pay for the product before viewing your entire return, printing your entire return, or electronically filing your return. Your payment reflects your satisfaction with the results of the software.

8. DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY PROVIDED ABOVE, 1040.COM OTP AND THE SERVICES ARE PROVIDED "AS-IS" AND, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DRAKE SOFTWARE, ITS AFFILIATES, LICENSORS, PARTICIPATING FINANCIAL INSTITUTIONS, THIRD-PARTY CONTENT OR SERVICE PROVIDERS, DISTRIBUTORS, DEALERS AND SUPPLIERS (COLLECTIVELY, "REPRESENTATIVES") DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING 1040.COM OTP OR THE SERVICES, INCLUDING ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, TITLE, MERCHANTABILITY, AND NON-INFRINGEMENT. DRAKE SOFTWARE DOES NOT WARRANT THAT 1040.COM OTP OR THE SERVICES ARE SECURE, FREE FROM BUGS, VIRUSES, INTERRUPTION, ERRORS, OR OTHER PROGRAM LIMITATIONS. SOME STATES DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSIONS MAY NOT APPLY TO YOU. IN THAT EVENT, ANY IMPLIED WARRANTIES ARE LIMITED IN DURATION TO 30 DAYS FROM THE DATE OF PURCHASE OF 1040.COM OTP OR THE SERVICES, AS APPLICABLE. HOWEVER, SOME STATES DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIFIC LEGAL RIGHTS, AND YOU MAY HAVE OTHER RIGHTS THAT VARY FROM STATE TO STATE.

All warranties or guarantees given or made by Drake Software and its service providers with respect to 1040.com OTP or the Drake Software Services (1) are for the benefit of the registered user of 1040.com OTP only and are not transferable, and (2) shall be null and void if a registered user breaches any terms or conditions of this Agreement.

9. LIMITATION OF LIABILITY AND DAMAGES. YOU AGREE NOT TO HOLD DRAKE SOFTWARE OR ITS SUBSIDIARIES LIABLE FOR ANY LOSS OR DAMAGE INCURRED AS A RESULT OF YOUR PARTICIPATION IN THIRD-PARTY SERVICES. ADDITIONALLY, EXCEPT FOR THE REIMBURSEMENT FOR CALCULATION ERRORS DESCRIBED ABOVE, YOUR EXCLUSIVE REMEDY AND THE ENTIRE LIABILITY OF DRAKE SOFTWARE AND ITS REPRESENTATIVES FOR ANY REASON SHALL BE LIMITED TO THE AMOUNT PAID BY YOU FOR 1040.COM OTP OR THE SERVICES, AS APPLICABLE, TO DRAKE SOFTWARE AND ITS SERVICE PROVIDERS.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DRAKE SOFTWARE AND ITS REPRESENTATIVES ARE NOT LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES RELATING TO LOSS OF BUSINESS, TELECOMMUNICATION FAILURES, LOSS, CORRUPTION, SECURITY OR THEFT OF DATA, LOSS OF PROFITS OR INVESTMENT, TAX POSITIONS TAKEN BY YOU, INABILITY TO FILE YOUR RETURN, OR THE LIKE), WHETHER BASED ON BREACH OF CONTRACT, BREACH OF WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY OR OTHERWISE, EVEN IF DRAKE SOFTWARE OR ITS REPRESENTATIVES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF A REMEDY SET FORTH HEREIN IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. IN NO EVENT DOES DRAKE SOFTWARE OR ITS SUBSIDIARIES ASSUME ANY LIABILITY TO ANY PARTY OTHER THAN YOU ARISING OUT OF YOUR USE OR INABILITY TO USE 1040.COM OTP OR THE SERVICES. THE LIMITATIONS OF DAMAGES SET FORTH ABOVE ARE FUNDAMENTAL ELEMENTS OF THE BASIS OF THE BARGAIN BETWEEN DRAKE SOFTWARE AND ITS SERVICE PROVIDERS AND YOU. DRAKE SOFTWARE WOULD NOT BE ABLE TO HAVE PROVIDED 1040.COM OTP OR SERVICES WITHOUT SUCH LIMITATIONS.

10. Miscellaneous. This Agreement is a complete statement of the agreement between you and Drake Software and its service providers, and sets forth the entire liability of Drake Software and its Representatives and your exclusive remedy with respect to 1040.com OTP and the Services and their use. The agents, employees, distributors, and dealers of Drake Software and its service providers are not authorized to make modifications to this Agreement, or to make any additional representations, commitments, or warranties binding on Drake Software and its service providers. Any waiver of the terms herein by Drake Software must be in a writing signed by an authorized officer of Drake Software and expressly referencing the applicable provisions of this Agreement. If any provision of this Agreement is invalid or unenforceable under applicable law, then it shall be, to that extent, deemed omitted and the remaining provisions will continue in full force and effect. This Agreement will be governed by North Carolina law as applied to agreements entered into and to be performed entirely within North Carolina, without regard to its choice of law or conflicts of law principles, and applicable federal law. The parties hereby consent to the exclusive jurisdiction and venue in the state and federal courts in Macon County, North Carolina. Headings are included for convenience only, and shall not be considered in interpreting this Agreement. This Agreement does not limit any rights that Drake Software may have under trade secret, copyright, patent or other laws.

This Agreement may be terminated by Drake Software and its service providers immediately and without notice if you fail to comply with any term or condition of this Agreement. Upon such termination, you must immediately cease using 1040.com OTP and the Services. Drake Software shall have the right to change or add to the terms of its Agreement at any time, and to change, delete, discontinue or impose conditions on any feature or aspect of 1040.com OTP and the Services (including but not limited to Internet-based services, pricing, technical support options, and other product-related policies) upon notice by any means Drake Software and its service providers determines in its discretion to be reasonable, including posting information concerning any such change, addition, deletion, discontinuance or conditions in 1040.com OTP or on any Drake Software-sponsored web site, including but not limited to the web site listed above. Any use of 1040.com OTP by you after Drake Software's publication of any such changes shall constitute your acceptance of this Agreement as modified.

11. U.S. Government Restricted Rights. The Software is a "commercial item," as that term is defined at 48 C.F.R. 2.101 (OCT 1995), consisting of "commercial computer software" and "commercial computer software documentation," as such terms are used in 48 C.F.R. 12.212 (SEPT 1995). Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227-7202-1 through 227-7202-4 (JUNE 1995), all U.S. Government End Users acquire the Software with only those rights set forth herein. Drake Software 235 East Palmer Street Franklin NC USA 28734.