Engagement Agreement – Business Tax Returns
We are pleased to be able to serve you in preparing your 2023 federal and requested state income tax returns. This letter is to specify and confirm the terms of our engagement with you and to clarify the nature and extent of the services we will provide. Ethical guidelines and our professional liability insurance require this form to be completed‐ this is to your advantage.
Jonathan Clark, CPA. will prepare your 2023 federal and requested state income tax returns from information you will furnish us. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of the information provided through our required due diligence. We might furnish you an organizer and other worksheets to guide you in gathering the necessary information. Your use of an organizer and other worksheets will assist in keeping pertinent information from being overlooked.
The Partnership (1065) and S Corporation (1120S) filing deadline is Friday Wednesday, March 15, 2024.
We will need all information at the earliest possible time, but no later than Friday, March 1, 2024 for Partnerships (1065) and S Corporations (1120S). This is in order to meet the tax return filing deadline.
Data Integrity
It is your responsibility to provide all the information required for the preparation of complete, comprehensive and accurate tax returns. You should retain all the documents, cancelled checks, and other data that form the basis of income and deductions. These might be necessary to support the accuracy of the tax returns to a taxing authority. Current tax laws state that you have the final responsibility for the income tax returns. You therefore should review them carefully before signing them and/or approving efile authorization.
Our engagement cannot be relied upon to disclose errors, irregularities, or illegal acts, including fraud and defalcations, which might exist. We will perform accounting and bookkeeping assistance only as determined to be necessary for preparation of the income tax returns. In addition, we will use professional judgment in resolving questions where the tax law is unclear, or where there might be conflicts between the taxing authorities’ interpretation of the law and other supportable positions. Unless otherwise instructed by you, we will resolve such issues with you and maintain client advocacy whenever possible.
Extensions, Tax Payments
If an extension of time to file your tax return(s) is required, any tax that might be due with the tax return(s) must be paid with the extension. Any amounts not paid by the filing deadline are subject to interest and late payment penalties. All interest and late payment penalties are your responsibility, but we will assist in verifying the accuracy. This includes any additional fees for the extension as well as any penalties and/or interest that might be due because of the late payment.
Should a tax return extension be necessary because‐
required tax documentation and information is not received by the dates above or
your authorization for electronic filing of your tax return is not timely received,
Jonathan Clark, CPA shall prepare and electronically file all necessary tax return extensions on your behalf and notify you accordingly. Since failure to file penalties are severe, this authorization is an attempt to minimize associated penalties and interest. By accepting the engagement terms described in this letter you authorize tax return extensions to be filed on your behalf should it become necessary as described above.
Tax law provides for various penalties that may be imposed when taxpayers understate their tax liability. If you would like information on the amount or the circumstances of these penalties, please contact us.
It is your responsibility to provide sufficient amounts of money to pay your taxes so that we can submit your tax returns in a timely manner on your behalf. You understand and acknowledge that you are solely responsible for defending any and all claims and paying any and all damages that might arise out of your failure to sufficiently fund your tax obligations in a timely manner; and/or your request that we delay submission of your tax returns beyond the due date for any reason whatsoever. Moreover, you agree to defend and indemnify Jonathan Clark, CPA against any and all claims arising out of or related to any such circumstances.
To meet the filing requirements for individual tax returns, extended 2023 business entity tax returns will be completed at the earliest in May or June 2024 once all required information is furnished to us. Therefore, affected individual tax returns might also require a tax return extension.
Examination, Damages
Your tax returns may be selected for review by the taxing authorities. Any proposed adjustments resulting from that review are subject to certain rights of appeal. In the event of such government review or tax examination, we will be available upon request to represent you. We may charge additional fees for the time and expenses incurred.
As additional consideration for us to provide you these services, you agree that the extent of our liability for damages to you for any actions taken will not exceed the total amount actually paid by you for our services. Unless a fraud claim is asserted, you agree that this will be your only remedy and you hereby waive any other claims you have now or in the future for actual, incidental, and consequential damages, including, but not limited to, lost profits and third‐party claims.
Regardless of the location of your residence or business, the State of California, or the appropriate federal district court having venue, will have jurisdiction over all controversies that might arise regarding this agreement.
Agreement
It is agreed by us that there are no other agreements or understandings between us relating to the subject matter of this engagement agreement and that it supersedes all prior income tax return engagement agreements and the like, either written or oral, that exist or may have existed for the 2023 tax year. Neither this engagement agreement nor its execution have been induced by any reliance, representation, stipulation, warranty, agreement, or understanding of any kind other than those expressed in this agreement. No change or modification of this engagement agreement shall be valid unless made in writing and signed by the parties.
Either of you or Jonathan Clark, CPA may cancel this engagement at any time by any form of written or electronic notice. If you cancel and we have performed any work prior to our receiving your cancellation notice, you agree to pay us for such work performed based upon our current rate schedule. We may use any deposits or payments already received and apply them to your account.
Fee Schedule
Jonathan Clark, CPA's fee for this engagement will be in accordance with our standard fee schedule, certain taxable events might incur additional fees.
We like to think of our fee structure as easy, medium, and hard. Having said that, we try to maintain historical fees for returning clients....but that is not synonymus with fees never increasing (sorry). Our staff of accounting professionals are impacted by the increased cost of living just like everyone else.
Ad-Hoc Tax Preparation Services |
Fee |
Students/Children under 24 |
$275-$400* |
Fastrac 1040
*Fairly Straightforward Return yet want the expertise of a CPA firm to prepare the tax return -Roughly 5-6 Tax Documents (W2's, 1098's, 1099-SSA, 1099-INT, 1099-G, and similar forms) -Sch A deductions are fine such as medical, taxes, mortgage interest, charity -Dependent/Child Care credits -One State
|
$425 |
All Other 1040's
Fastrac plus any of the following -K1's -Investment Sales -Tax Credits (Non Dependent) -Schedule C (Small Business) -Schedule E (Rental Property) -SMLLC -Other
|
$450-$1000 |
Partnership |
$1200-$2500 |
S-Corporations |
$1200-$2500 |
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You may also benefit from our Tax Prep Package Pricing |
Inquire Within |
Record Retention Policy
In accordance with Jonathan Clark, CPA current record retention policy, we will retain our work papers and copies of your financial reports and other records for the engagement for three years unless specifically requested by you. We will provide you copies of all reports prepared that should be a part of your books and records. If you should need replacements, we will provide additional copies which might incur additional costs to you. All of your original records will be returned to you upon request only.
Physical deterioration or catastrophic events may shorten the term during which our records will be available. The work papers and files of our firm are not a substitute for your original records. It is agreed and understood that in connection with the performance of our engagement, the work papers prepared by us will remain property of Jonathan Clark, CPA.
Privacy Policy
This is being furnished to you as required by the Gramm‐Leach‐Bliley act of 1999, which addresses in part the protection of individuals’ privacy. This is the annual notice required by law.
Jonathan Clark, CPA treats any information concerning our clients and former clients with strict confidentiality. Consistent with that policy, we restrict access to nonpublic personal information concerning you to staff members who have a business need to know and to provide you the services for which you have retained us. We do not disclose any personal or confidential information to anyone else without your express permission to do so, except as permitted or required by law. In addition, we maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
Thank you for permitting us to be of service. We value our relationship with you and hope you view us as your most trusted advisor. We will work to continue earning that trust.
Jonathan Clark, CPA