ENGAGEMENT LETTER FOR TAX PREPARATION AND/OR TAX PLANNING ENGAGEMENTS with PASADENA TAX SERVICES DATE __________
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Thank you for selecting PASADENA TAX SERVICES to assist you with your tax affairs. This letter confirms the terms of our engagement and the extent and nature of the services we provide.
We will prepare your tax year ____ Federal and State(s) income tax returns using the information you provide. We may ask for clarification of some items, but we will not audit or otherwise verify your information and documents. If you request an organizer to help you gather your information, it may help you avoid overlooking important data and contribute to a more complete and efficient tax return. This also helps keep the cost of our services as low as possible.
It is your responsibility to provide accurate information and you should keep all documents, cancelled checks, etc. that support your income and deductions. If additional preparatory accounting work is required above the normal analysis and tax preparation, an hourly fee of $50. will be noted on your invoice.
Penalties of as much as $100,000. can be imposed on you and/or our firm for failing to disclose participation in “reportable transactions” that is, certain arrangements the IRS has identified as potentially abusive. We will insist that all such transactions be properly disclosed. The law also imposes penalties when taxpayers understate their tax liability.
Your returns may be selected for audit by a taxing authority. Any proposed adjustments are subject to appeal and in the event of an examination, we can arrange to be available to represent you. This would be a separate engagement and fees and expenses for defending your returns would be invoiced according to terms we would mutually agree on for that engagement.
Our fees for tax preparation are based the amount of time and type of forms required at standard billing rates. All 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.
All of your original records will be returned to you with your tax return documents at the end of our engagement. You should keep these in secure storage for a minimum of seven years. I will also keep my copies of these records and if required to be reproduced at a later time; a fee will be accessed of no less than $20.00.
To affirm that this letter correctly summarizes your understanding of the arrangements for this work, please sign a copy in the space indicated below and return it to us as well as keeping a copy for your records.
We greatly appreciate your confidence and trust in our firm. Please feel free to call if you have any questions and I always appreciate your referrals as well.
Very Truly Yours,
Bernice E Brightbill,
On behalf of Pasadena Tax Services
ACCEPTED AND AGREED TO BY
Complete Name of Client or Clients