Tax Engagement Letters

Tax Engagement Letter

This engagement letter confirms the terms under which the tax preparer and the client will perform tax services. Client Name: Tax Preparer/Firm Name:

1. Scope of Engagement

The preparer will prepare the federal and specified state tax returns identified below for the tax year(s) indicated. The preparer will not audit, verify, or otherwise confirm the accuracy of information provided by the client unless otherwise agreed in writing. Tax year(s):

2. Client Responsibilities

The client is responsible for providing all information required for the preparation of complete and accurate returns. The client agrees to retain and make available records that support income, deductions, credits and other tax items. The client shall provide the preparer with all relevant documentation, including but not limited to W-2s, 1099s, K-1s, bank statements, and expense records.

3. Fees, Billing and Payment

Fees will be based on time incurred, the complexity of the work, and any mutually agreed fixed fees. An initial estimate is provided below; final fees will be billed upon completion. Estimated fee:

4. Taxpayer Identification

Individual/Sole Proprietor
C Corp
S Corp
Partnership
Trust/Estate
LLC
Other:

Social Security Number:    Employer Identification Number:

5. Representations and Certification

By signing this engagement letter, the client certifies, under penalties of perjury where applicable, the following:

1. All information provided to the preparer is true, correct and complete to the best of the client's knowledge and belief and the client will provide any additional documentation or clarification requested by the preparer.
2. The client authorizes the preparer to prepare the specified tax returns and to electronically file those returns where applicable, and to communicate with taxing authorities on behalf of the client only with the client's prior written consent or as otherwise expressly authorized herein.
3. The client will examine the completed returns and is responsible for the accuracy and completeness of the returns prior to signing and filing; the preparer is not responsible for penalties or interest resulting from incomplete or inaccurate information provided by the client.
4. The client authorizes the preparer to retain copies of tax returns and supporting documentation as required by applicable law or professional standards and to charge for reasonable costs associated with such retention where agreed.

Client authorizes preparer to discuss tax matters with tax authorities on client's behalf (limited to matters necessary to prepare or file returns)
Client authorizes electronic filing of tax returns (where applicable)

6. Confidentiality and Use of Information

The preparer will maintain the confidentiality of client information in accordance with professional standards. The preparer may disclose information where required by law or authorization provided by the client. The preparer is permitted to use aggregated, de-identified information for internal quality control and training.

7. Limitation of Liability and Indemnification

The client agrees that the preparer's liability for claims arising from this engagement, whether in contract, tort, or otherwise, will be limited to direct damages up to the amount of fees paid for the services under this engagement, except where prohibited by law. The client shall indemnify and hold the preparer harmless from claims, penalties, and interest resulting from false or misleading information supplied by the client.

8. Records Retention

Original documents provided to the preparer will be returned upon request. The preparer is authorized to retain copies of returns and supporting documentation. The client agrees that the preparer may destroy retained records after seven years unless otherwise instructed in writing.

9. Termination

Either party may terminate this engagement upon written notice. Fees for work performed through the date of termination will be due and payable. The preparer may cease work if the client fails to provide requested information in a timely manner.

10. Governing Law

This engagement letter shall be governed by and construed in accordance with the laws of the jurisdiction in which the preparer maintains its principal place of business, without regard to conflicts of law principles.

11. Acceptance

Please sign below to indicate your acceptance of the terms of this engagement. Signing this letter constitutes acceptance of the terms and authorization for the preparer to proceed with the services described above.

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