Thank you for choosing AFS Tax Management, LLC to assist you with your 2024 tax preparation. 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 2024 federal and state income tax returns. We will depend on you to provide the information we need to prepare complete and accurate returns. We may ask you to clarify some items but will not audit or otherwise verify the data you submit.
By sigining below, you hereby state that all the information above is true to the best of your knowledge and that you are allowing AFS Tax Management, LLC to prepare your taxes based on that fact. You understand that the law imposes penalties when taxpayers underestimate their tax liability and that you are financially responsible for any outstanding balance due to any false information given. Please call us if you have concerns about such penalties.
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 time required at standard billing rates plus out-of-pocket expenses. Invoices are due and payable upon presentation. To the extent permitted by state law, an interest charge may be added to all accounts not paid within thirty (30) days.
Our engagement to prepare your 2024 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 you have not selected to e-file your returns with our office, you will be solely responsible for filing the returns with the appropriate taxing authorities. Review all tax return documents carefully before signing them.
If provided to us, 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, canceled checks, etc., as these items may later be needed to prove the accuracy and completeness of a return. We will retain copies of your records and our work papers for your engagement for seven years, after which these documents will be destroyed.
Your return may be randomly selected for review by the taxing authorities, especially given the recent and anticipated tax law changes as well as the $80 billion the IRS just received to ramp up their audit and enforcement efforts. Fees, associated with responding to notices, audit representation, and tax Identity theft not due to our error, are not part of this engagement and will be billed separately at our current hourly rate for tax representation of $375 per hour, unless you have enrolled in one of our Client Care Package’s that covers such services.
If for any reason, other than our error or omission, an amended tax return has to be filed with no fault of AFS Tax Management, LLC, an amended tax preparation fee of 50% of the original tax preparation fee plus a fee for any additional required forms omitted from the original return (minimum of $200.00) will be due.
To affirm that this letter correctly summarizes your understanding of the arrangement for the preparation of your 2023 tax return, please sign below.