This letter confirms the terms of our engagement with you and outlines the nature and extent of the services we will provide.
We will prepare your federal and state income tax returns from the information you provide. We may ask you to clarify some items but will not audit or otherwise verify the data you submit.
You should retain all original supporting documents, cancelled checks, etc., as these items may be needed later to prove accuracy and completeness of a return.
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.
The law imposes penalties when taxpayers underestimate their tax liability. Please contact us if you have concerns about such penalties.
If your tax return is selected for audit by the IRS or the state tax authorities, we will be available to represent you or to prepare materials in response to correspondence and we will render additional invoices for the time and expense incurred at the current hourly rate. Please let us know right away if you receive any letters from the IRS or any other tax agency. We will correct your return for free and pay any penalties if we are at fault. However, we are not responsible for payment of any taxes owed.
Our fee will be based on the complexity of the return and time needed to prepare the return and billed at the standard billing rates. However, if complications are discovered in the process of preparing your tax return, or additional bookkeeping is required, we may need to charge for bookkeeping at the hourly rate of $75/hour.
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 we are not able to e-file your returns, you will be solely responsible to file the returns with the appropriate taxing authorities. Review all tax-return documents carefully before signing them. This letter can apply to future years of tax preparation services unless the agreement is terminated or amended in writing.
To affirm that this letter correctly summarizes your understanding of the arrangements for this work, pleasesign the enclosed copy of this letter in the space indicated and return it to our office. Please call if you have any questions. Sincerely, Alexander Accounting, LLC
I, the Client, agree to the aforementioned terms and conditions with my hand and signature below: