Agreement

Tax Engagement Letter

Contract Date

October 17, 2026

Prepared By

Your Company

Presented To

Your Client

123 Street Name, Ste 987

Sampletown, XY 50001

October 17, 2026

 

Dear Your Contact,

 

Thank you for choosing Your Company to prepare this year's returns for Your Client and its owners. This letter sets out the returns we'll prepare, what's not included, what we need from you, and the terms of our engagement.

 

1. The Returns We'll Prepare

For the tax year ending [December 31, 2026], we will prepare:

  • Your Client's federal and [state] income tax returns, with a schedule for each owner's share of income
  • The federal and [state] individual income tax returns of [each owner, for example: Jordan Lee and Sam Ortiz]

 

Each owner whose return we prepare also signs this letter for their own return.

 

2. What's Not Included

This engagement doesn't include responding to notices, audits, or examinations from any tax authority, amended returns, returns in any other state, locality, or country not listed above, bookkeeping, payroll or sales tax returns, or tax planning. We're happy to quote any of these separately.

 

3. Your Responsibilities

You are responsible for the accuracy and completeness of the information you give us, and for the returns themselves once you sign them. You agree to:

  • Send the information on our document list by [March 1]
  • Tell us about every source of income and every transaction that may affect your returns
  • Keep the records that support your returns, such as statements and receipts, for as long as a tax authority may examine them
  • Review each return carefully before you sign it

 

4. How We Use Your Information

We'll rely on the information you provide without auditing or verifying it, though we may ask questions or ask for supporting documents. Where the tax law is unclear, we'll explain the options and our recommendation, and you'll make the decision. A tax authority may disagree with a position taken on a return.

5. Penalties and Interest

Tax authorities may charge penalties and interest for late filing, late payment, or understated tax. You are responsible for any that result from information that's late, incomplete, or inaccurate, or from tax you don't pay on time.

 

6. Filing Your Returns

Once you've reviewed each return, we'll ask you to sign the e-file authorization form the tax authority requires. We'll file electronically once we receive it, and can't file until we do. Any tax due is paid by you directly to the tax authority.

 

7. Deadlines and Extensions

If your information arrives after the date above, we'll file extensions and complete the returns in the order information arrives. An extension usually gives more time to file, not more time to pay, so we'll estimate any tax due by the original deadline.

 

8. Fees

Our fee for the returns above is $4,400. Half, $2,200, is due when you sign this letter, and the balance when the returns are ready for your review. Additional forms, states, or complexity beyond what we discussed are billed at $225 per hour, only with your approval first.

 

9. When Our Engagement Ends

Our engagement ends when the returns above are filed. Notices or questions about them after that are a new engagement.

 

10. Records and Confidentiality

We'll return your original documents and keep copies of your returns and our working papers for [seven] years. We'll keep your information confidential, and won't disclose it without your consent unless the law requires it.

 

11. General

This letter is governed by the laws of [state]. It is our entire agreement about these returns, and may only be changed in writing signed by both of us.

 

If these terms are acceptable, please sign below, and have each owner whose return we're preparing sign as well. We'll send your document list once we receive the signed letter and the first payment.

 

Sincerely,

 

Your Company

Signatures

You
Your Company
You