Thank you for choosing Taxlady LLC to assist with the 2017 tax return. This Letter of Understanding confirms the terms of the engagement and outlines the nature and extent of the services we will provide. We appreciate the opportunity to provide tax services for you.
To comply with the Internal Revenue Code Section 274(d), taxpayers must have documentary evidence, such as receipts, cancelled checks, bills and mileage logs to substantiate all items reported on the returns. Documents should be kept for at least 6 years and many need to be retained permanently.
We will prepare the 2017 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 submitted.
We will perform accounting services only as needed to prepare the tax returns. Our work will not include procedures to find defalcations or other irregularities. Accordingly, our engagement should not be relied upon to disclose errors, fraud, or other illegal acts, though it may be necessary for management to clarify some of the information submitted. We will, of course, inform you of any material errors, fraud, or other illegal acts we discover. The law imposes penalties when taxpayers underestimate their tax liability. Please call us if there are any 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 and/or the forms required, plus out-of-pocket expenses. Invoices are due and payable upon presentation. We will return to you the original records at the end of this engagement. These records, along with all supporting documents, canceled checks, etc., should be securely stored, as these items may later be needed to prove accuracy and completeness of a return. We only retain copies of some of your records and our work papers for the engagement for seven years, after which these documents will be destroyed.
Our engagement to prepare the 2017 tax returns will conclude with the delivery of the completed return for your signature(s) and our subsequent submittal of the tax return (if e-filing). You should review all tax return documents carefully before signing form 8879 or the corporate equivalent.
To affirm that this letter correctly summarizes the arrangements for this work, please sign the enclosed copy of letter in the space indicated. We appreciate your confidence in us. Please call (701)306-3483 if you have questions.
Sincerely,
Jennifer Spiesz, EA Cindy Slaughter, AFSP
Accepted By: ______
Print Name / Title (if applicable) Date
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Signature