Engagement Letter for Individual Tax Return
(Must be signed prior to start of tax preparation)
This letter will confirm the mutual understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide.
Canyon View Tax and Accounting will prepare the 2021 federal and any applicable state income tax returns for the agreed upon fee.
Please recognize we cannot and will not guarantee or warrant any specific outcomes based upon our analysis or advice. The tax returns will be prepared from information that you will furnish to us. We will not audit or verify the information you submit, although it may be necessary to ask you for clarification of the information. We are responsible only for preparation of the income tax returns.
It is your responsibility to provide all the information required for the preparation of complete and accurate tax filings. It is our understanding that all of the information submitted to us for the purpose of tax return preparation is true, correct and complete to the best of your knowledge and belief and that you have the necessary written support for that information. You should retain all the documents, cancelled checks, receipts and other data that form the basis of income and deductions. By providing your signature below, you are confirming to us that unless we are otherwise advised:
your travel, meals, entertainment, gifts, and related expenses are supported by the necessary records required under the Internal Revenue Code; included but limited to actual receipts and tracking logs;
you have receipts for all single charitable donations, which are greater than $250;
your business use of mixed-use property, such as computers and vehicles, is substantiated by a log of such use as to preclude the deduction of any personal expenses, which may be related to such property.
If you have any questions as to the type of records required, please ask us for advice in that regard.
If we do not have all the information needed to complete your return by March 31, 2021, it will be necessary to file an application for an extension. This may require a tax payment made by you by April 15, 2022, in an amount approximating your unpaid tax liability. The exact amount may differ upon receipt of any subsequent information necessary to complete the return. You assume responsibility for any differences in tax, including any penalties and interest, arising out of the subsequently received information. Upon completion and receipt of the tax returns, you will be responsible for the timely filing of said returns.
We encourage you to advise us in advance of any major transactions you propose to undertake in order that we may provide the greatest assistance in minimizing income tax burdens. For example, because tax rules change constantly, an earlier opinion expressed in connection with a transaction may not apply to one occurring at a later date. Therefore a fresh review of the tax consequences may be appropriate to obtain desired results.
We will use our professional judgment to resolve questions in your favor where the tax law is unclear or where there are conflicts between the taxing authorities’ interpretation of the law and what seems to be other supportable filing positions. Your return is subject to review by taxing authorities. Any items resolved against you by the examining agent are subject to certain rights of appeal. In the event of an examination, we will be available upon request to represent you. A seperate engagement letter will be required for Audit Representation. Audit billing rates are not included in the quoted and agreed upon tax return preparation fees. We do not use flat rate structure for Audit Reprsentation.
The IRS allows tax preparers, as third party designees, to communicate with them on behalf of their clients by indicating so on the face of the tax return. Unless instructed by you otherwise, we will answer affirmative to the question that allows us to communicate on your behalf with the IRS.
Fees for our tax preparation services are flat rate and will be based on an analysis of prior year tax returns, current year activity, potential changes to your tax return, our expertise and professional experience. If we anticipate the proposed fee needs to be adjusted due to unexpected changes, we will communicate with you as soon as possible to discuss the next steps.
Fees are billed as follows: a 50% deposit is required to begin the preparation of your tax return. The additional 50% balance is due upon completion of the engagement.
We will provide you a draft tax return for your review after completion. Once you have reviewed the return, signed the electronic filing authorization, and submitted the balance due you will be provided with a final copy of your tax return. We will not submit your return to the IRS or any applicable state, without full payment for services rendered.
Our firm does not provide document storage, it is your responsibility to keep copies of your tax returns for your records. We will provide one copy of your tax return to you, any additional copies will be subject to a $50 per copy fee. The recommended time frame is at least 7 years minimum to retain copies of your tax return and related records. It is always best to keep your tax return and related records in perpetuity.
By signing below, you agree that you are personally responsible for any and all payments due to Canyon View Tax and Accounting for services provided to you.
Either party may terminate this agreement for any reason no earlier than 30 days after written notice is provided to the other party. Upon termination the current progress on the engagement will be assessed and analysis of fees accrued will be made. Fees will be due for any work completed to date, less any deposit we have received. For completed tax return engagements, this agreement automatically terminates upon the filing and acceptance by the appropriate tax authorities of the tax returns identified in this agreement.
Also, by signing below, you give us your permission to electronically file applicable tax return(s) and authorize us to enter a Personal Identification Number (PIN) on your behalf. If you choose to electronically sign your tax returns, electronic filing documents and any other correspondence with Canyon View Tax and Accounting your signature below constitutes your permission to accept signing electronically.
Please note that this letter defines our respective duties and responsibilities relating to your engagement of our firm. If you do not understand any of the terms of this agreement, please call so we can review them with you.
PLEASE REVIEW AND SIGN:
If this letter is in accordance with your understanding of the terms of this agreement, please sign and return to our office. We require a signed letter to be in our file prior to beginning tax preparation.
THIS INFORMATION IS COMPLETE AND CORRECT TO THE BEST OF MY (OUR) KNOWLEDGE.
I (WE) HAVE ADEQUATE RECORDS TO SUPPORT THE INFORMATION PROVIDED.
BY SIGNING BELOW, I AM PERSONALLY RESPONSIBLE FOR THE PAYMENT OF ALL INVOICES AND AMOUNTS DUE TO CANYON VIEW TAX AND ACCOUNTING.