Engagement Letters

[Lion]

Yes, I did search this forum, and others; but the letters shared are pre-Circular 230 revisions, or, at least, from last tax season and not during your preparation for this season. Several of you talked about revising your letters. Did you? Would any of you share your recently rewritten engagement letters, please?

[DTS]

Lion

Yes, I did and I am using them more. I don't use them for a simple 1040, but all others, yes.

I will email you mine and you see what you think.

Dennis

[BOB W]

Yes, I did and I am using them more. I don't use them for a simple 1040, but all others, yes.

I will email you mine and you see what you think.

Dennis

This is the first year I am using them also, but I make EVERYONE sign them. Just because a tax return is simple doesn't mean that ALL income is being reported. I want to cover Income as well as deductions......................

[Lion]

Thank You

Thanx, Dennis. And, Bob, will you share your letter, too? Panic is setting in now that I'm not protected by that Peace of Mind and have to cover my own butt. Have finessed one from Gear Up, but the ones I saw are full of passive voice and dull legalese -- although, I guess I want plenty of the legal language. I tried my insurance website, but no help. Thank you to anyone who offers examples &/or advise. Gotta get some sleep now.

[DTS]

Lion

What do you mean you need to get some sleep? Obviously, you were having fun with us!

Dennis

[DTS]

Bob

I think you understood what I meant by "simple".

I may be incredibly naive, but I just can't understand the concept of someone trying to argue with me in front of a judge that they did not know they did not have to report ALL income and that I did not tell them that. I mean, what planet are they living on?

You may be right. Who knows?

Dennis

[geekgirldany]

I believe the ones at Accountant World covers the new Cir 230 regulations.

Yeah just because they are simple doesn't mean a thing. It was a simple one that had a lawyer call me.

[KJ Judd]

I, too, have become much more stringent this year in requiring clients to sign the engagement letter. Yesterday, I e-mailed one to a client to sign & fax back to me! Sometimes they miss it when they mail their info in.

[BOB W]

Thanx, Dennis. And, Bob, will you share your letter, too? Panic is setting in now that I'm not protected by that Peace of Mind and have to cover my own butt. Have finessed one from Gear Up, but the ones I saw are full of passive voice and dull legalese -- although, I guess I want plenty of the legal language. I tried my insurance website, but no help. Thank you to anyone who offers examples &/or advise. Gotta get some sleep now.

I don't know what happen to TTB's Letters of Engagement link. I had used it to review the samples. One of the links brought me to Accountants World. It was there that I think I found the one I use for personal tax returns. In any case Accountants World now requires registration and TTB no longer has their samples.

I am having trouble creating a copy for posting to this thread. If you email me I can send you a PDF. wolters@optonline.net

Anyone else that wants one feel free to email me. Remember, I chose the most simplest one that is straight forward and to the point in plain language>> very basic.

[geekgirldany]

Here is the link to accountants world

http://www.accountantsworld.com/DesktopDefault.aspx?page=accountingaudit

[BOB W]

Here is the link to accountants world
http://www.accountantsworld.com/Desk...ccountingaudit

Thanks for the link. After reviewing the link, the one I'm using did not come from there. It must of been from TTB.

[Lion]

Thank You

Thank you, everyone. I couldn't find a thing on my insurance company's web site, so I called them this morning. They gave me the number for risk management who sent me to the Aon web site. It had great letters and other great advise, but the letters are way too long for my clients to read, at least this year when I'll be handing to them last minute. I've gotten helpful examples from you all -- as usual. Thanks.

[S T]

E & O

I am shopping my insurance, Lion what company do you use?

Sandy

[Lion]

TTB, of course!

Well, do you think I could've looked in TTB before I posted?! Just copied one from the WebCD to use with my clients tomorrow morning. Need to continue working on a set for various return types and bookkeeping and representation and consultation and...but like the first one in TTB list for my individual clients. Keep your letters coming, though: RitaLewis@DollarsSense.com Thank you very much.

[BOB W]

Well, do you think I could've looked in TTB before I posted?! Just copied one from the WebCD to use with my clients tomorrow morning. Need to continue working on a set for various return types and bookkeeping and representation and consultation and...but like the first one in TTB list for my individual clients. Keep your letters coming, though: RitaLewis@DollarsSense.com Thank you very much.

Ah ha..... that is where I got it from> The Web CD.........

Rita you probably picked the same one I email to you minutes ago..

By no means am I saying that this letter is a cure-all for the problems that we face, but it is a saleable statement that will not scare client away either.

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Letter of Engagement

I have engaged _______________________________ to prepare my individual FEDERAL and STATE of _________________ tax returns for tax year ended ___________________.

1) I understand that my tax return will be prepared based on information I provide to the preparer. I will submit to the preparer all Forms W2, 1099, and any other documents relevant to completion of an accurate income tax return. If there are any amounts relative to my return that are not listed on an official form such as business mileage figures, other business expenses, cost basis of stock, noncash charitable contributions, or other itemized deductions, I understand that I am responsible for providing accurate amounts to the tax preparer. I will examine my tax returns before mailing to make sure that all amounts reported on my return are accurate.

2) I understand that federal, state, and local taxing authorities may audit or adjust the amounts reported on my tax return, and it will be my responsibility to produce documents or other means of verification supporting any items in question. I understand that I will be responsible for any additional taxes, interest or penalties resulting from disallowed deductions, unreported income, or other adjustments or assessments made by taxing authorities.

3) I understand that in the event of preparer error, I will be responsible for any additional tax due, and that the preparer’s responsibility for payment is limited to additional interest or penalties resulting from the error.

4) I understand that my tax returns will be prepared based solely on information I provide, and that the preparer has not audited or otherwise verified the information contained therein. If I present my tax return to any third party for any reason, I will notify that third party that the preparer holds no responsibility for accuracy of the amounts reported, and offers no assurance with respect to any item reported on the return.

5) I understand that the fee for the tax return covers the tax return only, and any other services provided by the preparer such as representation or preparation for audit, other communications with taxing authorities, or tax planning services will be billed at the rate of _________________ per hour.