Sample engagement letter for tax services All work associated with communication between tax agencies following tax preparation to be set up as a separate engagement letter. An engagement letter Re: Engagement Letter for Tax Preparation Services Dear [Client Name], e you as a new client of [Your Tax Preparation Firm] for your tax preparation needs. Professional liability insurance carriers and defense attorneys have always proclaimed that engagement letters are one of the first lines of defense in a malpractice cause of action against a CPA. The letter defines the terms and conditions of the engagement, the obligations of both parties, services to be rendered, the duration of the Sample engagement letters for over 30 services and a terms and conditions document are available to CNA professional liability policyholders. Form 990: Return of Organization Exempt From Income Tax We will not prepare any tax returns other than those identified above, without your written request, and our written consent to do so. Download the PDF version. Includes Word format and tips to customize. Download this Tax Engagement Letter Design in Word, Google Docs, Apple Pages Format. Protect your business and clearly define client expectations. Consult with legal counsel. Feb 1, 2022 · This article discuss how and why to use engagement letters, choosing whether to represent a client via POA or tax information authorization, and the benefits of tax return extensions. It’s a formal agreement that spells out what you will do, how much it’ll cost, and what your responsibilities as an accountant are to your client. Tailor the template to your clients’ needs. Learn how to create effective engagement letters for tax services. Using a set of standard, firmwide terms and conditions can help increase engagement letter efficiency and consistency. Accounting Engagement Letter Sample Discover a variety of engagement letter examples tailored for accounting firms, available in both standard and premium formats. Review Engagement, Financial Statements Based on Income Tax Accounting. Re: Engagement Terms for Income Tax Consulting John Lebbs CPA, PLLC (collectively, “firm,” “we,” “us,” or “our”) is pleased to provide you, the “Client” referenced above (“you,” “client,” or “your”), with the professional services described below. CYP Accounting, Taxation, Management and Audit Services is offering accounting services to Kathleen Ann G. It is prepared before any legal or financial services are provided to define the parties’ relationship, thereby setting clear expectations for both sides and minimizing liability. It may be adapted for use in a variety of commercial transactions involving professional service providers, financial advisors, advertising and public relations agents, industry experts, and consultants. ENGAGEMENT LETTER FOR 2024 INDIVIDUAL TAX FILINGS: FORM 1040 PURPOSE OF THIS LETTER This letter is to confirm and specify the terms of our engagement with you and to clarify the nature and extent of the services we will provide concerning the preparation of your personal income tax returns. This engagement only pertains to the preparation of your 2024 personal income tax returns and does not include tax returns you may be required to file with other taxing authorities that are unrelated to personal income tax May 17, 2025 · A consulting engagement letter is an agreement between a consultant and their client that defines the terms of their professional relationship. Troubled taxpayers often believe that engaging an experienced tax problem resolution professional is the end of their IRS problems. Compiled Statements, with Omitted Disclosures, Accounting and Tax Services, Lack of Independence. Terms of engagement serve as the foundation of the professional relationship between practitioners and their clients. Our services will include reviewing the info 9. To ensure an understanding of our mutual responsibilities, we ask all clients for whom returns are prepared to confirm the following Feb 2, 2024 · Download the free bookkeeping engagement letter template in this guide, complete with expert insights and real-world examples for implementing best practices. Jan 8, 2024 · What is an Accounting Engagement Letter? Simply put, an accounting engagement letter serves as a formal binding contract between an accountant and their client, outlining the services, fees, and responsibilities of each party. Successor and assigns. Payroll Calculation Services We will: • • or Is engagement flat fee? Hourly? • How are fee disputes engagement be addressed? upon being billed, through an up-front retainer, • engagement no an action last services provided your your liability to the amount of the fees paid for that specific engagement. Mar 13, 2025 · A tax engagement letter is a critical document outlining the scope of services a tax professional will provide to a client. . Dear [CLIENT NAME]: Thank you for selecting [YOUR FIRM NAME] to assist you in preparing your corporate income tax returns. Following is a sample professional payroll accounting service engagement agreement for a small company with one employee and no prior payroll tax problems. Where can I find a sample engagement letter for (insert name of service)? Sources of sample engagement letters and sample terms and conditions include a CPA's professional liability carrier, the AICPA (particularly the Tax Section), paid providers, and alliance networks. We’ve put together all the We will begin work on your tax return(s) after receipt of payment, signed engagement letter, organizer, and tax documents on a “first come, first serve” basis. Engagement letters should always be modified to fit each engagement. [If work is required which is outside the scope of this letter, for example dealing with Tax authority enquiries into the tax return, then this will be a separate engagement for which Jan 21, 2024 · A tax consultancy engagement typically covers various services designed to assist clients with tax-related issues. Terms and Conditions. To ensure an understanding of our mutual responsibilities, we ask all clients for whom Aug 22, 2025 · Get a free tax engagement letter template + writing tips to eliminate scope creep and protect your firm's profitability. Jan 23, 2024 · The engagement letter for tax services defines the professional relationship between a tax service provider and a client, specifying services, fees, and confidentiality terms for clarity and mutual agreement. This letter confirms the terms of our engagement and the nature, timing, and limitations of the services we will provide. This letter and any other attachments incorporated herein (collectively, “Agreement”), confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. Easily Editable, Printable, Downloadable. The Internal Revenue Service imposes penalties on taxpayers, and on us as return preparers, for failure Engagement Letter template Use this free template to create and sign your engagement letters more efficiently, empowering your business to manage this routine contract at scale. Download as PDF or fill it online and save as a ready-to-print document. [Taxpayer (s)/Client (s)]: Eide & Eide CPAs, LLC is pleased to provide you with the professional services described below. Aug 22, 2023 · Engagement letters are mandatory tools for providing clarity, but what happens when you expand your offerings to advisory services? SAMPLE ENGAGEMENT LETTERS This package contains samples of engagement letters to be used in connection with engagements to prepare income tax returns for: Engagements for additional service will necessitate that we issue a Service Order as an addendum to this agreement, or a separate engagement letter to reflect the obligations of both parties. This letter confirms the terms of our engagement with you and outlines the nature and extent of the services we will provide. We’ve put together all the elements that Mar 12, 2021 · While engagement letters are required for attest services, they are not required for certain other accounting services. An engagement letter is a legal agreement that describes a business relationship to be entered into by a client and a company. Includes a sample template and key components. We will prepare your federal, state, county, and city income tax returns for the year (s) you identify in this Agreement. Comprehensive analysis of federal and state tax regulations, including Internal Revenue Service (IRS) guidelines and local tax laws, is a crucial component. Privileged tax advice does not include communications associated with the preparation of tax returns, tax accrual work papers associated with a financial audit or other financial statement engagement, or in providing general business or accounting recommendations or other non-tax engagements. To ensure an understanding between us, this letter sets forth the terms of our engagement as well as the nature and limitations of our services to you. txt) or read online for free. Establish the Terms and Type of Tax Accounting Services with this Engagement Letter for Tax Accounting Services Define the conditions of our engagement as well as establish the scope and type of tax accounting services you’ll provide. Our [my] engagement will be complete Engagement Letter for Personal Tax Return Preparation This letter is to confirm and specify the terms of our engagement with you for the year ended December 31, 2021, and to clarify the nature and extent of the tax services we will provide. Fresh Proposals help you write an engagement letter in a matter of minutes using pre-made, pre-designed letter templates. State the Terms and Define the Scope of Work with This CPA Engagement Letter Set forth the terms and objectives of your planned engagement with your client and the scope and limitations of the CPA accounting services. While less comprehensive than a standard contract, an engagement letter is still legally binding. This letter is to confirm and specify the terms of our engagement with you for tax preparation and tax advisement services provided to you from January 1, 2023 through December 31, 2023 and to clarify the nature and extent of the services we will provide. Engagement Letter – Uses, Format, Free Templates The engagement letter is a legally binding agreement that establishes the terms of the business relationship between a company and its clients. Apr 17, 2025 · Find out why you need an accounting engagement letter plus get templates, samples, critical services terms and clauses to help protect you. After all, when drafted properly, engagement letters form the basis for an enforceable contract and should have caveats unique to the scope of service provided, the amount of risk inherent in the Standard Engagement Letter for an Individual Return (Form 1040 series) This letter is to confirm our understanding of the terms and objectives of the engagement and the nature and limitations of the services I will provide, should you engage me by signing below. Oct 9, 2025 · Accountant/Bookkeeper Engagement Letter: Outlines services such as financial audits, tax preparation, bookkeeping, financial planning, and advisory services. We will rely upon the completeness and accuracy of the 2023 Individual Engagement Letter (Must be signed prior to start of tax preparation) We are pleased to have this opportunity to assist you with your 2023 income tax return preparation. This letter states the terms and conditions by which you, the “Client” referenced above (“you,” “client,” or “your”) have engaged John Lebbs CPA, PLLC (collectively, “firm,” “we,” “us,” or “our”) its successor and/or assigns to provide certain tax return preparation services. Learn how to write an effective accounting engagement letter with our step-by-step guide. May 16, 2025 · An engagement letter is a legally binding agreement that establishes a working relationship between a firm or independent contractor and a client hiring their services. Consultant Engagement Letter: Typically defines services such as strategic planning, financial advisory, human resources, IT consulting, marketing and sales, and operations management This letter is to confirm and specify the terms of our engagement with you and to clarify the nature and extent of the services we will provide. It’s a win-win CIMA’s example terms of engagement are a comprehensive guide designed to help practitioners understand the essential components of effective client agreements — all tailored to different business types. Apr 22, 2016 · The engagement letter is a contract and not a marketing device. An Engagement Letter is a formal letter that acts as a legally binding document between a client and a third-party consultant. The engagement letter outlines the scope of work, responsibilities, and Oct 20, 2025 · Tax rates are so high that the number of clients with unpaid taxes warrants the letter to be narrowed in scope to only cover the preparation of the tax returns. Payroll Engagement Terms Payroll Engagement Terms We appreciate the opportunity to provide payroll services to you. Information received after March 20th may be subject to an additional fee. Jun 1, 2015 · Tax engagement letters Use of this important practice tool can minimize professional liability risk, reduce confusion, improve collections, and ensure clients have a good understanding of the practitioner’s role. A tax engagement letter is a crucial document that defines the scope of services between a tax professional and their client. Tax service providers can use these tax engagement letter examples to outline the nature and extent of tax services. Sep 12, 2018 · Engagement Letter Sample - Free download as Word Doc (. In addition to the services outlined in Sample 1, we will also prepare and file your Mar 15, 2024 · This article shows you the essential elements of an accounting engagement letter, and includes a free template. Ideal for tax professionals. The engagement Jul 17, 2016 · A written agreement is preferable. This free sample of the CPA engagement letter will help you state the terms of your services, legal liabilities, and responsibilities. Chaves including the quarterly preparation of percentage and income tax returns and the preparation and monitoring of books of accounts for a monthly retainer fee of Our fee for services will be determined on the basis of time spent on this engagement plus out-of-pocket expenses, administration fees and rush fees as described in our Personal Income Tax Return(s) letter. Use this free example of the 1065 Tax Engagement Letter Template for outlining your 1065 tax preparation services for the specified period along with all the rights, responsibilities, and obligations. Jul 29, 2024 · Initiate a contract between you and your client for an individual income tax return engagement (Form 1040). Sep 23, 2025 · An accountant / bookkeeping engagement letter outlines the scope of work that a professional will provide for a client and typically includes details about compensation and the project timeline. Also, access ready-to-use free templates for US and UK geographies and understand the importance of engagement letters for accountants. This letter confirms the terms of our engagement with you and the nature and extent of services we will provide. We’ve provided a sample engagement letter to use with Form 990, Return of Organization Exempt From Income Tax, and other state non-profit tax returns. [Sample Individual Tax Return Preparation Engagement Letter] [Date] [Client name or, if married couple, names] [Client Address] An engagement letter serves to define the legal relationship between the practitioner and the client. Mar 21, 2025 · Streamline your bookkeeping services with these 6 engagement letter templates. Every letter template is professionally designed which will surely create a positive impression on your Use this free example of the Tax Engagement Letter For Individual Template for outlining your 1040 tax preparation services for the specified period along with all the rights, responsibilities, and obligations. To ensure an understanding of our mutual responsibilities, we require all clients for whom returns are prepared to confirm the following arrangements. Engagement letters are used primarily for filing taxes or audit services for an individual or business entity. It helps set clear expectations, establish responsibilities, and mitigate potential misunderstandings. This free sample of Tax Engagement Letter Template will help you state the terms of your services, legal liabilities, and responsibilities. This letter and any other attachments incorporated herein This letter confirms the terms of our engagement and the nature, timing, and limitations of the services we will provide. We are excited to have the opportun accordance with the tax laws and regulations applicable to your specific situation. It is a contract for the performance of services by the auditor or accountant and the payment of those services by the client. Mar 18, 2024 · This article shows you what to include in your bookkeeping engagement letter for new clients, and includes a free template. An engagement letter is more common in the business world than anywhere else. To the contrary, engagement of a representative is the initial step in resolving their IRS problems, which cannot be accomplished without their involvement and We [I] will prepare your [Year] joint federal income tax return, and the mutually agreed-upon income tax returns for the states of _______________ (collectively, the “returns”). For CPAs, an engagement letter specifies the tax return or financial statement services to be performed, expected fees, client responsibilities, limitations of the work, disclaimer of audit standards, and required signatures agreeing to the terms. Login to the Policyholder Resource Center with your firm's professional liability policy number to download. For SEC Engagements - Review of Interim Financial Statements of Publicly-Held Client (See SAS Engagement Letter for Business Tax Return Preparation This letter is to confirm and specify the terms of our engagement with you for the year ended December 31, 2021, and to clarify the nature and extent of the tax services we will provide. In order to ensure an understanding of our mutual responsibilities, we ask all clients for whom returns are prepared to confirm the following arrangements. 1 Our charges are computed on the basis of time spent on your tax affairs (which depends on the levels of skill and responsibility involved) and disbursements incurred in connection with the engagement. Includes dynamic fields, detailed T&C, 3-options pricing eSignature. Engagement letters should be used by practitioners for all tax services provided to a client as a means of providing a clear understanding of the service(s) to be rendered, clarifying the expectations of both parties and to prevent any misunderstandings, which may arise. Change from Unaudit Engagement in Original Engagement Letter to Review Engagement. This is typically intended to describe what services to deliver (the This letter is to confirm and specify the terms of our engagement with you and to clarify the nature and extent of the services we will provide. Jan 1, 2014 · The majority of claims (by frequency) reported by leading CPA professional liability carriers (see Exhibit 1) stem from tax services, yet, according to the authors’ employer, the North American Professional Liability Insurance Agency LLC (NAPLIA), and their experience, individual tax engagements are where engagement letters are least used. Rather, our fees for this engagement, including tax planning, preparation of your returns, and any representation of your interests during an examination by a taxing authority and/or any subsequent appeal, will be based on our standard hourly rates, as set Convince, onboard new clients using tax planning and advisory engagement letter sample. Particularly with amended tax return and tax audit engagements, do not guarantee outcome or results. Use our template to get started. Engagement letters are essential to your practice in the sense that it sets your client’s expectations on the services that you can offer throughout your relationship. Users of this sample engagement letter should refer to this guide to fully understand the components of an engagement letter. Learn how to implement one at your CPA firm. However, best practices would dictate using them, especially when providing tax services. 2024 ENGAGEMENT LETTER – S CORPORATION FORM 1120S Note: Please sign and return this letter so we may begin preparing on your tax return. Why You Need an Engagement Letter Template By using a standardized engagement letter, your firm can ensure consistency, professionalism, and legal protection while Establish the Terms and Type of Tax Accounting Services with this Tax Engagement Letter Template Define the conditions of our engagement as well as establish the scope and type of tax accounting services you’ll provide. The purpose of this letter is to specify the terms of engagement regarding Canadian Corporate Tax services made to your client. Engagement Objective and Scope We will prepare the following federal return for year indicated on the Form 990 services proposal accepted by you. brought under regarding the specific fees (such as , • 4. To prevent having to ask clients to sign an additional engagement letter if the firm is acquired by another firm, include successor-and-assigns language. This way, you know what to expect from us, and we Feb 5, 2024 · Enhance communication this tax season by learning from real examples how to create an effective tax return letter for clients. Thank you for selecting YOUR FIRM NAME to assist you with your tax affairs. By signing this letter, you agree to have Burns, Sweeney & Associates prepare your individual 2024 federal, resident state, and local income tax returns (if applicable). We will prepare your 2025 federal and state personal income tax returns from information you furnish us. Please read this letter carefully Jan 11, 2024 · Find out how to write an engagement letter for accounting services and why it’s important to ensure all clients sign it before getting to work. pdf), Text File (. Easily create a professional tax engagement letter with our free template. An engagement letter is a contract that establishes the services a practitioner will provide to his or her clients. It shall be binding on the heirs, successors and assigns of you and us. Dear Valued Client: This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the tax services we will provide. This letter and any other attachments incorporated herein (collectively, “Agreement”) confirm our understanding Download a free editable tax services engagement letter template for tax pros. Download a PDF document with a sample letter for accountants or bookkeepers to prepare tax returns for clients. We look forward to collaborating with you and want to confirm our understanding of the arrangements for this service. We’ve provided a sample engagement letter to use with a tax consulting engagement. This letter will confirm the understanding between you and Wych Tax dba Shaw & Associates concerning tax services we will provide. Each engagement requires careful consideration to address its particular circumstances. This engagement pertains only to the [Year] tax year, and our [my] responsibilities do not include preparation of any other tax returns that may be due to any taxing authority. The engagement letter will outline the scope of the services, responsibilities of both parties, and other relevant details. DEADLINES: March 1, 2021 - Deadline to submit tax information to Rosen & Associates. Introducing our comprehensive Tax Engagement Letter template, a must-have for tax professionals and clients alike. This free sample of tax accounting service s engagement letter will help you state the terms of your services, legal liabilities, and responsibilities. It outlines the fundamental aspects of the consultant’s work, including their responsibilities, compensation terms, and contract length. We’ve Engagement letter examples to set out the scope of services, responsibilities, fees, period for services like accounting, bookkeeping, payroll, tax, legal firms Individual Income Tax Return: General Instructions This sample engagement letter is a supplement to the engagement letter guide, Preparing and Using Engagement Letters. In this task, the tax advisor will draft the initial engagement letter based on the gathered tax-related information and the client's specific requirements. Editor's Note: This form of Engagement Letter establishes an agreement between a generic professional service provider and its client (s). Dec 1, 2017 · It is that time of year again: Tax practices are preparing engagement letters and tax organizers to send out en masse to clients to kick off another tax season. Dec 13, 2024 · A well-written engagement letter clearly defines the scope and services of the engagement, as well as the client's responsibilities. This is a written contract that explains the business relationship between two parties, usually a business establishment and a client. The main purpose of letters of engagement is to set the expectations for both parties involved in the agreement. TAX PREPARATION AND PLANNING ENGAGEMENT LETTER This letter is to confirm and specify the terms of our engagement with you for tax preparation and tax advisement services provided to you from January 1, 2024, through December 31, 2024 and to clarify the nature and extent of the services we will provide. It serves as a legally binding agreement that protects both the client and the professional by clearly defining responsibilities, fees, deadlines, and limitations. These templates feature automated letter generation and cover a wide range of practice areas, including: Accounting services Bookkeeping services Tax preparation services Payroll services Virtual CFO services Audit services Forensic General Engagement Letter for Individual Tax Return Preparation This letter is to inform you, the taxpayer, of the services we will provide you; and the responsibilities you have for preparation of your tax return. on the results of our services. The letter outlines the terms, services, fees, and responsibilities of both parties. It helps the company communicate what the client should expect in terms of the service it will provide. The engagement letter is the practitioner’s opportunity to eliminate unrealistic expectations. This engagement letter represents the entire agreement regarding the services described herein and supersedes all prior negotiations, proposals, representations or agreements, written or oral, regarding these services. Audit Engagement Wording Compilation Engagement Wording Review Engagement Wording Tax Return (Personal) Wording Tax Return (Business) Wording Combined Services Audit & Tax Engagement Wording Agreed Upon Procedures Engagement Wording Bookkeeping Engagement Wording Acceptance Agent Engagement Wording Conflict of Interest “Informed Consent”: Joint Representation Sample FBAR Engagement Wording Initiate a contract between you and your client for an S corporation income tax return engagement (Form 1120-S). The use of engagement letters by professional accountants for non-audit work, including tax engagements, was pioneered by CAMICO® Mutual Insurance Company as an effective way to help document the CPA’s agreement with the client. Mar 1, 2021 · This letter is to specify the terms of our engagement, clarify the nature and extent of the services we will provide, and confirm an understanding of our mutual responsibilities. Dear Client: We look forward to providing you with tax return preparation services this year! The purpose of this letter and attached “Additional Engagement Terms” is to specify the terms of our engagement and clarify the nature and extent of the services we will provide. Mar 17, 2025 · Sample 3: Bookkeeping with Tax Preparation [Your Company Letterhead] [Date] [Client Name] [Client Address] Subject: Engagement Letter for Bookkeeping and Tax Preparation Services Dear [Client Name], This letter confirms our agreement to provide bookkeeping and tax preparation services to [Client Company Name]. doc), PDF File (. ypbkcwko zokwko xdfvxf hapbv wru qxd uecdcgu skbdq hgqln ztcmhkj xmpyfd efhhg gqxj zagjf vycsjmt