Dear Client:
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. In order to ensure an understanding of our mutual responsibilities, we ask all clients for whom returns are prepared to confirm the following arrangements.
We will prepare your 2023 federal and resident income tax returns from information which you will furnish to us. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of some of the information. We will furnish you with questionnaires and worksheets to guide you in gathering the necessary information. Your use of such forms will assist in keeping the fee to a minimum.
This engagement does not include any other tax returns that you may be required to file such as Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If you have additional filing requirements, please contact our office so that a separate engagement letter may be prepared.
It is your responsibility to provide all the information required for the preparation of complete and accurate returns. You should retain all the documents, cancelled checks and other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You have the final responsibility for the income tax returns and, therefore, you should review them carefully before you sign them.
Our work in connection with the preparation of your income tax return does not include any procedures designed to discover defalcations and/or irregularities, should any exist. We will render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns.
The law provides 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.
Your returns may be selected for review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available upon request to represent you and will render additional invoices for the time and expenses incurred.
Our fee for these services will be based upon the amount of time required at standard billing rates plus out-of-pocket expenses. All invoices are due and payable upon presentation. Invoices past due will incur a monthly finance charge of 1.50 percent. In the unlikely event we should incur legal or other costs to collect our fee, you agree to reimburse us for such costs. Your tax materials must be received by our office no later than March 22nd to ensure timely preparation. If your information arrives later than March 22nd, your tax returns may be placed on extension.
Requests for additional copies of your tax returns may be subject to additional fees.
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By signing this engagement letter, you have agreed to the fair allocation of risk between us. As such, you agree, to the fullest extent permitted by law, to limit the liability of our firm to you for any and all claims, losses, costs and damages of any nature whatsoever, so that the total aggregate liability of our accounting firm shall not exceed our firm’s total fee for services rendered under this agreement. Both parties agree that there is a one-year limitation period to bring a claim against us for errors or omissions. The one-year period will begin upon the date of the tax professional’s signature on the tax returns covered by this engagement letter.
If the foregoing fairly sets forth your understanding, please sign in the space indicated and return it to our office. However, if there are other tax returns you expect us to prepare, please inform us by noting so at the end of the return copy of this letter.
We want to express our appreciation for this opportunity to work with you.
Very truly yours,
Adams Samartino & Company, PC