A well-filled organizer can often defuse a customer`s complaint if it is pointed out (tactfully, of course) that the CPA relied on the information provided by the customer. DSJCPA prepares your 2020 federal returns, as well as the state and local government tax returns you provide (collectively, your “returns”) from the information you provide. Our Services are not intended to determine whether you have filing requirements in domestic, local or foreign tax jurisdictions other than those you specify. However, we are available under the terms of a separate letter of commitment to determine if such tax returns are required. Our service fees are in line with our standard billing rates for staff assigned to this work [or a fixed fee to cover non-hourly fee agreements]. Payment is expected when our services are completed. Mission letters are one of the first lines of defense in an accountant`s professional liability lawsuit. (For example, do not add a donation tax return service with an individual tax service unless the correct disclaimer language for a donation tax return is included.) The following language is highly recommended. This and most of the following passages come from or are based on a full sample engagement letter available here: Record Keeping: Our policy is to keep copies of documents related to this commitment for seven years. However, DSJCPA does not keep the original customer records as all original working documents will be returned to you once this order is complete.
It is your responsibility to retain and protect your records for possible future use, including possible review by governmental or regulatory authorities. Clearly define the completion of each engagement with this template. This letter can be an important tool in the event of a professional liability claim. By signing this letter of commitment, you agree to authorize us to prepare your personal income tax return and to indemnify and hold us harmless from any liability or cost for misrepresenting items you have provided to us. We appreciate the opportunity to work with you. This letter is intended to clarify the terms of our mandate, clarify the nature and scope of the services we provide, and confirm the understanding of our mutual responsibility. Engagement letters that do not specify the time period pose problems in determining scope as well as other elements, e.B. invoicing. The usual expectation and hope is that clients will prosper and thus increase both the scope and complexity of their tax concerns over time. This, in turn, should distinguish the scope of the services to be provided within the time frame from those of the original mandate letter.