Tax Prep Engagement Letter

Existing Client

Thank you for choosing us to assist you with your taxes. This letter confirms the terms of our engagement with you and outlines the nature and extent of the services we will provide.
Our engagement is limited to performing the following services: Federal and State Taxes
We are responsible for preparing only the returns referenced above. If you have taxable activity in a state or local municipality other than that referenced, you are responsible for providing our firm with all the information necessary to prepare any additional applicable state and local income tax returns as well as informing us of the applicable states and local municipalities. If you have income tax filing requirements in a given state or local municipality but do not file that return, there could be possible adverse ramifications such as an unlimited statute of limitations, penalties, etc. This engagement letter does not cover the preparation of any financial statements, sales and use tax, or gift tax returns, which, if we are to provide, will be covered under a separate engagement letter.
We will depend on you to provide the information we need to prepare complete and accurate returns. We may ask you to clarify some items but will not audit or otherwise verify the data you submit. We have a digital client interview - available to help you collect the data required for your return. The Organizer will help you avoid overlooking vital information. By using it, you will contribute to efficient preparation of your returns and help minimize the cost of our services.
We will perform accounting services only as needed to prepare your tax returns. Our work will not include procedures to find defalcations or other irregularities. Accordingly, our engagement should not be relied upon to disclose errors, fraud, or other illegal acts, though it may be necessary for you to clarify some of the information you submit. We will, of course, inform you of any material errors, fraud, or other illegal acts we discover.
Should we encounter instances of unclear tax law, or of potential conflicts in the interpretation of the law, we will outline the reasonable courses of action and the risks and consequences of each. We will ultimately adopt, on your behalf, the alternative that you select.
You have the final responsibility for the income tax returns and, therefore, you should review them carefully before you sign them. We are not responsible for the disallowance of doubtful deductions or inadequately supported documentation, nor for resulting taxes or penalties and interest.
The Internal Revenue Service imposes penalties on taxpayers, and on us as return preparers, for failure to observe due diligence and care in reporting for income tax returns. In order to ensure an understanding of our mutual responsibilities, we ask all clients for whom we prepare tax returns to confirm the following arrangements:
Federal, state, and local taxing authorities impose various penalties and interest charges for non‐compliance with tax law, including for example, failure to file or late filing of tax returns and underpayment of taxes. You as the taxpayer remain responsible for the payment of all taxes, penalties and interest charges imposed by taxing authorities. If we determine, at our sole discretion, that we may be subject to a preparer penalty due to a tax position on your return, you agree to either adequately disclose that position on your return or change the position to one that we confirm would not subject us to penalty. If you choose not to change your position or adequately disclose the tax position so as to eliminate, at our sole discretion, our exposure to the preparer penalty, we, at our sole discretion and at any time, may withdraw from the engagement without completing or delivering tax returns to you. Such withdrawal will complete our engagement and you will be obligated to compensate us for all time expended and to reimburse us for all out‐of‐pocket expenses incurred through the date of our withdrawal.
Federal, State, and local taxing authorities also impose various penalties and interest charges for noncompliance with tax law, including for example, failure to file or late filing of tax returns and underpayment of taxes. You as the taxpayer remain responsible for the payment of all taxes, penalties and interest charges imposed by taxing authorities.
We may contact the IRS Treasury Offset line and/or the IRS Federal tax debt line on your behalf with your consent as of signing this letter. This information will be used to determine if tax preparation fees must be paid upfront and the availability of refund transfer products.
The Affordable Care Act (ACA) has added various new health insurance mandates, penalties and credits. You acknowledge and our firm agrees, that we will rely solely on information provided by you for the purposes of preparing your tax returns listed above and have provided no advice regarding your eligibility for any credits, estimates of any payments or estimates of any penalties under the ACA.
Confidentiality. All information you provide to us in connection with this engagement will be maintained by us on a strictly confidential basis. In the event we receive a subpoena or summons requesting that we produce documents from this engagement or testify about the engagement we will notify you prior to responding to it if we are legally permitted to do so. You may, within the time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate to protect information from discovery. If you take no action with the time permitted for us to respond or if your action does not result in a judicial order protecting us from supplying requested information, we may construe your inaction or failure as consent to comply with the request. Time incurred in connection with subpoenas, and/or other related legal matters involving you, and or your account(s), will be billed at our standard billing rates.
Internet Communication. In the interest of facilitating our services to you, we may communicate by facsimile transmission or send electronic mail over the internet. This often involves sending data, documents and other information, including sensitive tax and financial information. Such communications may include information that is confidential to you. Our firm employs measures in the use of facsimile machines and computer technology designed to maintain data security. While we will use reasonable efforts to keep such communications secure in accordance with our obligations under applicable laws and professional standards, you recognize and accept that we have no control over the unauthorized interception of these communications once they have been sent and consent to our use of these electronic devices during this engagement. You should ensure that your email server and the information stored on your system is secure. We are not responsible for any transmission problems or for the failure of you or any authorized recipient of the information to receive files. You are solely responsible for (i) notifying the firm of the failure to receive files containing your information so that we may provide a copy in an alternate form; (ii) securing your email server and restricting access to your email in order to maintain confidentiality of the information transmitted; (iii) storing the electronic files containing the information; and (iv) acquiring and maintaining the software needed to open and access the files containing the information.
Fees. Our fee for services will be based upon the complexity of the return(s) and/or the extent of the tax forms required for us to properly file your tax return(s). If a federal, state, or qualified dependent return is requested, but actual preparation determines that there is no filing requirement or the client chooses to not file with us, we will charge $150.00 for the tax review and subsequent no filing determination. We do reserve the right to charge based on our standard charges if there is extensive research required to make the “no filing” determination. Invoices are due and payable upon presentation. To the extent permitted by state law, an interest charge may be added to all accounts not paid within thirty (30) days. Currently our fee ranges are as follows:
Federal and State Tax review: $75.00
Federal and State Individual Income Tax Returns start at $150.00 (Not including the cost to e-file ($74.00) or the cost to utilize available bank products such as Refund Transfers ($34.95). Refund Advance Loans are NOT available.
Optional Audit Protection - coverage for 3 years for the tax-year: $60.00
You agree that our firm’s liability for any and all claims, damages, losses and costs of any nature arising from this engagement is limited to the total amount of fees paid by you to our firm for the services rendered under this agreement. We will return any and all original records to you at the end of this engagement. However, we strongly encourage you to make copies of your documentation and to keep original documentation in your possession. You should securely store these records, along with all supporting documents, canceled checks, etc., as these items may later be needed to prove accuracy and completeness of a return. We will retain copies of your records and our work papers for your engagement for seven years, after which these documents will be destroyed.
Our engagement to prepare your tax returns will conclude with the delivery of the completed returns to you (if paper-filing), or your signature and our subsequent submittal of your tax return (if e-filing). If you have not selected to e-file your returns with our office, you will be solely responsible to file the returns with the appropriate taxing authorities.
To affirm that this letter correctly summarizes your understanding of the arrangements for this work, please sign where indicated and submit to our office. Your tax return(s) cannot be prepared until this engagement letter is signed and we receive it in our office.
We appreciate your confidence in us. Please do not hesistate to contact us if you have any questions or concerns.
Consent to Use of Tax Return Information
Federal law requires this consent form be provided to you. Unless authorized by law, we cannot use, without your consent, your tax return information for purposes other than the preparation and filing of your tax return.
You are not required to complete this form. If we obtain your signature on this form by conditioning our services on your consent, your consent will not be valid. Your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year.
For your convenience, we have entered into arrangements with certain financial institutions and their partners regarding the provision of bank accounts, refund settlement products, card services, and/or related banking services. To determine whether these services may be of interest to you, we will need to use your tax return information.
If you sign this form, you authorize us consent to use your tax return for the designated purpose. You authorize us to use your Tax Return and information collected during the preparation of your taxes to ensure that any refund settlement products and related banking services that is obtained or applied for can be issued, processed, underwritten, and serviced. The foregoing activities and related services may be performed by one of our partnered companies and/or their affiliates: Refundo, Inc.
If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law or without your permission, you may contact the Treasury Inspector Geeneral for Tax Administration (TIGTA) by telephone 1-800-366-4484, or by email at [email protected]
Consent to Disclosure of Tax Return Information
Federal law requires this consent form be provided to you. Unless authorized by law, we cannot disclose, without your consent, your tax return information to third parties for purposes other than the preparation and filing of your tax return. If you consent to the disclosure of your tax return information, Federal law may not protect your tax return information from further use or distribution.
You are not required to complete this form. Because our ability to disclose your tax return information to another institution affects the service that we provide to you, we may change the terms of service that we provide to you if you do not sign this form. If you agree to the disclosure of your tax return information, your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year.
You have indicated that you are interested in obtaining a bank account, refund settlement product, card service, and/or related banking services. These products are made available through arrangements that we have with financial institutions and their partners. To apply for and obtain any of these products or services, we may forward your information to these companies and/or their affiliates.
If you sign this form, you authorize us to disclose your Tax Return for the designated purpose. You authorize us to disclose your entire Tax Return and information collected during the preparation of your taxes to ensure that any refund settlement products, and related banking services that is obtained or applied for can be issued, processed, underwritten, and serviced. The foregoing activities and related services may be performed by one of our partnered companies and/or their affiliates: Refundo, Inc.
If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law or without your permission, you may contact the Treasury Inspector General for Tax Administration (TIGTA) by telephone at 1-800-366-4484, or by email at [email protected].
One (1) Time Credit Card Payment Authorization

YOUR CARD WILL NOT BE CHARGED UNLESS YOU HAVE US DO THE WORK AND THEN DECIDE NOT TO HAVE US FILE YOUR TAXES. YOUR CARD IS JUST GOING ON FILE. This part authorizes us to make a one-time charge to your card in the amount of $100 (personal taxes) and $150 (1099 & business taxes) in the event of a tax review with no file determination. THERE WILL BE NO CHARGE TO YOUR CARD UNLESS WE DO THE WORK AND THEN YOU DECIDE NOT TO MOVE FORWARD. THE CARD IS JUST GOING ON FILE. By Signing this form, you hereby agree to all terms and conditions stated forth in this engagement agreement. This is permission for a single transaction only, and does not provide authorization for any additional unrelated debits / credits to your account.

Please select
  • VISA
  • MasterCard
  • Discover
  • American Express
  • No elements found. Consider changing the search query.
  • List is empty.
Accepted by: (both spouses must sign in the case of a joint tax return).
By submitting your signature on this form, you hereby agree to the terms and conditions set forth under this agreement, including but not limited to; the conditions for engagement, the consent to use of tax return information, the consent to disclosure of tax return information, the one-time credit card payment authorization, and any and all provisions under this agreement set forth in this engagement letter.
Clear
Clear
Thank you for reaching the end of our engagement letter and for the opportunity to serve you this year.