Sample Engagement Letter

We will prepare your 2021 joint/individual federal income tax return and income tax returns for the state of New York (collectively, the “returns”). This engagement pertains only to the 2021 tax year, and our responsibilities do not include preparation of any other tax returns that may be due to any taxing authority. Our services are not intended to determine whether you have filing requirements in other taxing jurisdictions than the one(s) you have informed us of. Our fees include the filing of the returns. Additional work, including but not limited to; correspondence with the taxing authorities and taxing authorities’ examination will require a separate engagement letter and a separate fee.

Our fee for these services will be . The fees are determined by our fee schedule and your acceptance of this engagement letter indicates your acceptance of the fees. These fees will be paid as follows; 1/2 of the payment when this engagement letter is agreed to. The remaining 1/2 balance will be paid after our zoom meeting to review the tax return and before the tax return is released. If you do not pay the remaining 1/2 of the balance within 30 days of our request, this agreement is terminated, and you forfeit your initial 1/2 payment. We will not finalize and file your return. Additionally, we will not prepare any extensions or have any obligation to you or any taxing jurisdiction. You have advised us of any foreign bank accounts or transactions. The IRS requires specific disclosure, and it is your responsibility to provide us with the information.

In connection with this engagement, we will communicate via our secure folders we have set up on your behalf. Emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted to us in connection with the performance of this engagement.
We will prepare the returns from information which you will furnish to us. It is your responsibility to provide all the information required for the preparation of complete and accurate returns. We will furnish you with questionnaires to assist you in gathering the necessary information.

Because an examination is always possible, it is your responsibility to maintain adequate records to support the deductions claimed on the return.
Alternative dispute resolution (ADR). All matters arising directly or indirectly from this Agreement, shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York, without giving effect to the choice of law provisions thereof. Any unresolved controversy or claim arising out of or relating to this Agreement, except (i) as otherwise provided in this Agreement or (ii) with respect to which a party seeks injunctive or other equitable relief, shall be submitted to arbitration by one arbitrator. In connection with any arbitration conducted pursuant to this Agreement, an arbitrator will be selected in accordance with the rules of the American Arbitration Association (the “AAA”) then in effect.

Indemnification and hold-harmless clauses. You agree to indemnify us for time spent on activities other than the preparation of this tax return. For example, providing testimony in tax investigations and inquiries.
We are responsible only for information provided to us on the current-year return and not for those on returns for previous years prepared by another firm or preparer.