Letter of Engagement–Financial Statements & Tax Services

 

Thank you for instructing A Pivotal Solution Tax and Notary Services to act as your tax advisor. To ensure that there are no misunderstandings regarding the nature and extent of the services that we will provide to you, this contract outlines the scope of work.

 

Terms of Contract

 

On the basis of information and instructions you provide, we will compile any required financial statements for your and/or business.

 

The services to be provided will include all matters ancillary to those services such as, for example, dealing with and responding to queries raised by the IRS or other taxation authority.

 

This letter of engagement will apply in respect of your financial year end and for future years unless otherwise agreed.

 

Extent of Services

 

We will not audit, review or carry out any other checks on the accuracy or completeness of the information you provide. It is up to you to give us accurate and complete information to enable us to provide the services described in this letter and we accept no liability for the accuracy or completeness of any information supplied by you in any form.

 

Accordingly, no assurance on any assertions contained in the financial information compiled will be provided.

 

Our engagement does not include the investigation or discovery of internal control weaknesses, errors, illegal acts or other irregularities, including without limitation, fraud, or non compliance with laws and regulations. However, we will inform you of any such matters which come to our attention during the course of our engagement.

 

The information you are to supply and any other information that we consider necessary to complete the engagement must be provided in a timely manner in order for the assignment to be completed on a timely basis.

 

Use and Distribution of the Financial Information

 

We understand that the intended use and distribution of the financial information we will compile is for the special purpose management reporting and of calculating income tax. If this should change in any material respect, you will inform us immediately.

 

You may make copies of any reports for your own internal use or for providing to a third party. However, we accept no duty or responsibility to any party other than yourself who may seek to rely on our reports and furthermore you indemnify us against any claim by such other party in respect of the reports.

 

Information and Disclosure

 

All assignments will be conducted in accordance with the professional standards, rules and ethical requirements of Circular 230. Information we obtain in the course of this engagement is subject to confidentiality requirements. We will not disclose that information to other parties without your express consent, except as required by law or professional obligations. 

 

Limitation of Liability

 

At all times we will use reasonable skill and care in providing our services to you. However, in spite of this our liability to you whether in contract, tort, equity or otherwise, for any loss or damage or expenses (including legal costs) suffered or incurred directly by you as a direct result of any act or omission by us in providing our services, shall be limited to a maximum amount equal to the fee (excluding tax, disbursements and expenses) paid to us by you in respect of the services in question. If the Services were provided in respect of more than one financial year the fee on which the liability amount is based shall be the fee paid in respect of the financial year in respect of which the act or omission occurred. Any claim against us must be brought within twelve months of the date on which we complete the services.

 

 

Ownership of Work Papers

 

Material that you provide to us remains yours and will be returned to you when the engagement is completed. Work papers that we create remain our property.

 

Where we provide taxation services for you we will store tax records that we hold on your behalf for a period of seven years after the applicable balance date. At the end of that period, unless you ask us to send that information to you, the records will be destroyed using a secure document destruction service.

 

Non-accounting advice and financial advice

 

This firm does not provide legal or financial advice. Any opinion expressed should be confirmed by the appropriate professional. Any comment made on the subject of legal or investment matters should be interpreted as only a personal view and not professional advice.

 

Future Years

 

This letter applies for future years unless you or we wish to end or change the arrangement.

 

Conclusion

 

If you have any questions regarding this letter of engagement, please do not hesitate to call us.

 

In order to signify your acceptance of the terms of engagement, please sign below . Your success is our business!

 

FEES AND PAYMENTS

 

Unless otherwise agreed with you in writing our fees are calculated on the basis of the time spent on the assignment by our team and on the levels of skill and responsibility involved. Fees generally begin at $350.00 plus a $75.00 filing fee, and it can range upwards, depending on the nature of the work. Fees may be paid through your refund,  or through regular payment via CPA Charge, Zelle or Cash App. Major credit cards are accepted, as well.

 

If required by you we will provide you with either an estimate, or firm quotation, of the fees involved prior to commencing an assignment.

 If we begin work and the contract is broken, we reserve the right to collect $150.00 for services and time rendered in preparing your tax return.

 

You should be aware that, like all other providers of services, we are entitled to retain possession of your records that have been used in relation to this engagement until outstanding fees are settled.

Personal Information

• Social Security numbers and dates of birth for you, your spouse and your dependents
• Copies of last year’s tax return for you and your spouse (helpful, but not required)
• Bank account number and routing number, if depositing your refund directly into your account
• Information about your income
• W-2 forms for you and your spouse
• 1099-C forms for cancellation of debt
• 1099-G forms for unemployment income, or state or local tax refunds
• 1099-NEC (or 1099-K if you’re paid through a third-party such as PayPal) forms for you and your spouse for any independent contract work
• Form 1099-R (for IRA/pension distributions)
• 1099-S forms for income from sale of a property
• 1099-INT, -DIV, -B, or K-1s for investment or interest income
• SSA-1099 for Social Security benefits received
• Alimony received
• Business or farming income—profit/loss statement, capital equipment information
• Rental property income and expenses—profit/loss statement, suspended loss information
• Prior year installment sale information—Forms 6252, principal and interest collected during the year, SSN and address for payer                         
•         Additional Income

• Remember to report all income you receive, including:
• Business income
• Rental real estate, royalties, partnerships, S corporations, trusts, etc.
• Unemployment compensation
• Stock options
• Gambling winnings
• Payments for jury duty
• Scholarships
• Cancellation of debt
• Taxable Health Savings Account distribution
• Prizes and award                                                                                                                                                                                                                                                                                           Adjustments to your income
• The following items can help reduce the amount of your income that is taxed, which can increase your tax refund, or lower the amount you owe.
• Alimony paid for divorces executed prior to 2019.
• Form 1098-E for student loan interest paid (or loan statements for student loans)
• Form 1098-T for tuition paid (or receipts/canceled checks for tuition paid for post-high school)
• For teachers: canceled checks or receipts for expenses paid for classroom supplies, etc.
• Records of IRA contributions made during the year
• Receipts for any qualifying energy-efficient home improvements (solar, windows, etc.)
• Records of Medical Savings Account (MSA) contributions
• Self-employed health insurance payment records
• Records of moving expenses
• Keogh, SEP, SIMPLE, and other self-employed pension plan
  
  If you itemize your deductions:
• Child care costs: provider’s name, address, tax ID, and amount paid
• Education costs: Form 1098-T, education expenses
• Adoption costs: SSN of child; records of legal, medical and transportation costs
• Forms 1098: mortgage interest, private mortgage insurance (PMI), and points
  you paid
• Investment interest expenses
• Charitable donations: cash amounts, official charity receipts, canceled checks; value of donated property; miles driven, and out-of-pocket expenses
• Medical and dental expense records
• Casualty and theft losses: amount of damage, insurance reimbursements
• Records/amounts of miscellaneous tax deductions: union dues; unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)
• Records business use of home expenses for self-employed, home size/office size, home expenses
• Rental property income/expenses: profit/loss statement, rental property suspended loss information
• Taxes you’ve paid
• State and local income taxes paid
• Real estate taxes paid
• Personal property taxes
• Vehicle license fees based on value of vehicle
•  

• Other Information

• Estimated tax payments made during the year (self-employed)
• Prior-year refund applied to current year and/or any amount paid with an extension to file
• Foreign bank account information: location, name of bank, account number, peak value of account during the year