Dear (Client):
Thank you for choosing NuStart Business Consulting, LLC, to assist you with your tax returns for 2023. 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 and submit to you for filing the 2023 federal, state, and local income tax returns. The engagement only pertains to the 2023 tax returns and does not include any additional returns you may be required to file with other taxing authorities.
We will prepare the tax returns relying on the information and documents that you are providing to us. It is your responsibility to provide us with timely and complete information and documentation for the preparation of your returns. We may ask you to clarify certain items that you furnish to us, but we will not audit or verify any of this information. Therefore, our engagement cannot be relied upon to disclose errors, embezzlements, fraud, or other illegal acts should they exist. However, we will inform you of any such matters that come to our attention. The law imposes penalties when taxpayers underestimate their tax liability. A checklist is available to help you collect the data required for your return and will help you avoid overlooking important information.
Your cooperation and timeliness are essential for us to complete this engagement. We must receive all information to prepare your return by April 08,2024, to ensure that your return will be completed no later than April 15,2024. If we have not received all of your information by April 08,2024 and your return is not completed by April 15,2024, you may be subject to late filing or late payment penalties. We do not file tax extensions for clients unless specifically requested to do so. An extension only allows additional time to file a return, it does not extend the time to pay any taxes that are due.
It is your responsibility to maintain, in your records, the documentation necessary to support the data used in preparing your tax returns, including but not limited to the auto, travel, entertainment, and related expenses and the required documents to support charitable contributions over $250. If you have any questions as to the type of records required, please ask us for advice in that regard. It is also your responsibility to carefully examine and approve your completed tax returns before signing and sending them to the tax authorities. We are not responsible for the disallowance of doubtful deductions or inadequately supported documentation, nor for resulting taxes, penalties, and interest.
We will use professional judgment in resolving questions where the tax law is unclear or where there may be conflicting interpretations of the law and other supportable positions. Unless otherwise instructed by you, we will resolve such questions in your favor whenever possible.
The information you provide will be kept confidential. We restrict access to your information and maintain physical, electronic, and procedural safeguards to protect your information.
Should We encounter instances of unclear tax law, or of potential conflicts in the interpretation of the law, We will outline the reasonable courses of action and the risks and consequences of each. We will ultimately adopt, on your behalf, the alternative you select.
Our fee will be based on the complexity of the return and will be quoted in advance of our work. However, if complications are discovered in the process of preparing your tax return, we may need to adjust the fee. Before proceeding with the preparation of the return. We will generally contact you in advance if our original quote requires significant revision due to the amount of work involved. Invoices are due and payable upon presentation.
We will return your original records to you at the end of this engagement. You should securely store these records, along with all supporting documents, etc., as these items may later be needed to prove the accuracy and completeness of a return. We will electronically retain copies of your records and our work papers for your engagement for five years, after which these documents will be destroyed.
If your tax return is selected for audit by the IRS or by the state tax authorities, we are available to represent you or to prepare materials in response to correspondence. However, there are additional expenses incurred. 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 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 for filing 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.
We appreciate the opportunity to serve you. Please sign and date the enclosed copy of this letter to acknowledge your agreement with the acceptance of your responsibilities and the terms of this engagement. It is our policy to initiate services after we receive the executed engagement letter.
Sincerely,
NuStart Tax Team