Engagement Letter

[thomtax]

I mentioned this earlier in another thread and got no replies, so I am trying one more time.

I want to go through and revise, revamp, change - whatever, to try to come up with a good engagement letter. If any of you can share ideas, drafts, etc. or guide me to some sites where they have ideal letters posted, I will appreciate it.

Thanks.

[sea-tax]

I am not sure if they still have it or not but accountantsworld.com used to have some pretty good engagement letters. I personally used it as a starting point and then changed things as I deemed necessary.

[taxfun]

Engagement letter sources

If you carry E&O insurance, especially from Camico or Aon, look at their sites. They have comprehnesive quidance on the subject.

[Jiggers]

Engagement Letter

This sets forth our understanding of the terms and objectives of our engagement and the nature and limitations of the services I will provide.

Based on the information you furnish to me, I will prepare the _______ Federal Income Tax Return. Under the Internal Revenue Code, taxpayers are required to maintain records supporting their return, including receipts and canceled checks for all deductible expenditures. You will be responsible for maintaining all necessary tax records and for the accuracy and completeness of the information submitted to me in connection with the preparation of the above-described return. This includes travel and entertainment records as well as vehicle expenses and proof of business use. By signing this letter you are certifying that you have reported all of your income.

This work will be performed from information that is provided by you and without my verification. If I have to classify and organize your information, it will be based on the description on your deposit slips, checks, or other information that you have furnished. I do not and I cannot audit or review this information.

The completed return is for government use and your personal use only. Because it will not be prepared in accordance with generally accepted accounting principles, but rather according to the principles specified in the tax code, it could be misleading and therefore should not be provided to any other person.

When this firm obtains confidential financial information from you, I share that confidential financial information with NO ONE, other than the employees of this firm who have a need to know in order that I complete the engagement for which I have been engaged. I will not sell or disclose your personal financial information to third parties.

My fee for this service will be based on my standard fee schedule for preparation of a Federal Income Tax Return in effect at the time that this work is performed. There is an additional fee for organizing and/or totaling your information. This fee does not include the cost of representation if this return is audited by the Internal Revenue Service. There is an additional fee for this service. Payment will be due upon presentation of an invoice.

Sincerely,




----------------------------------------------------------------------------------------------------------------------------------
“I (We) have reviewed the above engagement letter and agree to the terms and conditions set forth. Any information that I (we) have submitted for the sole purpose of preparing my (our) tax return(s) can be substantiated by receipts, canceled checks or other documents. I (We) have reported all of my (our) taxable income. This information is true, correct and complete to the best of my (our) knowledge.”

Taxpayer’s Signature __________________________________ Date _________________
Spouse’s Signature __________________________________ Date _________________
----------------------------------------------------------------------------------------------------------------------------------

[JG EA]

Also, I have been 'attorney advised' that if you send out the same letters and if you have in those letters the elements necessary to have the taxpayer realize his responsibility, then that also is in your favor.

e.g. 'the returns have been prepared from the information you provided...' 'it is your responsibility to check over the return...' that kind of thing.

[Lion]

Thank You

Thank you, Jiggers and all. That's another thing I need to do before tax season.... Really appreciate your sharing your letter and all the leads from everyone, also. And, I have to line up insurance. And, find a good techie to have on call. Tomorrow, I hire an assistant.

[thomtax]

Thanks to all of you for your replies. Jiggers - thanks for sharing your letter; Dennis - Thanks for sending the copies; and to the others for sharing links, etc.

You've been a real help and it is appreciated.

LT