Tax Engagement Letter
We would like to confirm the terms of our engagement with you and to clarify the nature and
extent of the tax preparation services that will be provided to you.
We ask all clients to confirm their understanding of our services.
Your 2016 Individual and Business state and federal income tax returns will be prepared for
you based on information that you provide to us. We do not verify nor audit the information
that you provide to us. At times it may be necessary for us to ask you for clarification about the
information that you provide to us. No steps are taken to verify your income from any sources.
Our office will provide you worksheets and questionnaires in order to gather the data that is needed.
Using these resources will help make sure that no important information is overlooked.
Upon request, we will provide a secure electronic data exchange to facilitate in sharing the necessary
information. Client documents loaded onto this data exchange website will be temporarily stored and
deleted after thirty days. [Company] will keep a record of your tax returns for a period of five years
after the filing date. However, you should keep a copy of your tax returns for your own records.
It is your repsonsibility to provide all the information required for the preparation of
complete and accurate tax returns. You should keep all the documents, cancelled checks and
other data that form the basis of income and deductions. These may be necessary to
prove the accuracy and completeness of the returns to the taxing authority. You have the final
responsibility for the income tax returns and, therefore, you should review them carefully
before signing them.
Our work in the preparation of your income tax returns does not include any procedures designed
to discover irregularities. We will provide accounting and bookkeeping assistance as determined
to be necessary for preparation of the income tax returns. This service is limited to the
preparation of your tax return and does not include anyof the following additional services:
Bookkeeping and compilation of financial information
Quickbook consulting and repair
Financial Statement preparation
Tax planning and consulting
Estimating future tax liability
Preparation of responses to taxing authority
Disclosure of financial account information
Should you require these additional services, we would be glad to provide you with our standard pricing for them.
In circumstances where the tax law is unclear, we will use our professional judgement
in resolving questions. Examples include where there may be conflicts between taxing
authorities' interpretations of the law and other supportable positions. Unless
otherwise instucted by you, we will resolve such questions in your favor whenever possible.
If we conclude as a result of our research that you are required to disclose a transaction on
your tax return, you consent to attach a completed Form 8275 (Disclosure Statement) or 8275R
(Regulation Disclosure Statement) to your tax return after we discuss the situation with you.
You agree to hold us harmless with respect to any and all actual consequential damages (including
but not limited to taxes, penalties, interest, and attorney's fees and costs) that you incur
as a result of including such disclosures with your filed tax returns.
The law provides various penalties that may be imposed when a tax payer understates their
tax liability. If you would like information on the amount and circumstances of these penalties,
please make a request from us.
The tax returns we prepare for you may be selected for review by the tax authority. Any
proposed adjustments by the examining agent are subject to certain rights of appeal.
In the event of such government tax examination, we will be available upon request to
represent you and will invoice you for the time and expenses incurred.
The fee for any additional services will be billed at a mutually agreed upon price
before the service is provided. This service will be billed separately, as part of a change
order, and will be payable upon presentation (or upon mutually agreed terms).
If the previous fairly describes your understanding of the tax preparation services, please sign this
letter in the space indicated below and return it to our office. If you have other tax
returns you expect us to prepare, such as gift, payroll, and/or property, please inform us
by noting so at the end of the returned copy of this letter.
We thank you for the opportunity to work with you.
First, Last Name
CPA Company, LLC
Accepted by: _____________________
List other tax returns to prepare: