Engagement letter template for tax season

[FIRM NAME]
[DATE]

[CLIENT NAME(S)]
[ADDRESS]

Re: Preparation of your [TAX YEAR] federal and [STATE] income tax returns

Dear [CLIENT NAME],

This letter confirms the terms of our engagement and the services we will provide.

1. Scope
We will prepare your [TAX YEAR] Form 1040 and the [STATE] resident return from information you provide. We will not audit or verify that information. Services not listed here, such as amended returns, representation in an examination, tax planning or bookkeeping, are outside this engagement unless we agree them in writing.

2. Your responsibilities
You are responsible for the completeness and accuracy of the information you give us, and for keeping the records that support your return. We may ask questions where information appears incorrect, inconsistent or incomplete, and we may need further documents before we can finish. [Circular 230 § 10.34(d)]

3. Errors and omissions
If we learn that you have not complied with the tax laws, or that a return or document you filed contains an error or omission, we will tell you promptly and explain the consequences. [Circular 230 § 10.21] Whether to correct a prior return is your decision; any correction is a separate engagement.

4. Deadlines and extensions
To file by the original due date we need your complete information by [INTERNAL CUTOFF]. If it arrives later, we may file an extension. An extension extends the time to file, not the time to pay.

5. Fees
Our fee is [FEE OR BASIS], payable [TERMS]. Additional services are billed at [RATE]. [FIRM PAYMENT POLICY]

6. Records
At the end of the engagement we will return your original records. If you ask for your records, we will return those you need to comply with your tax obligations promptly, even if there is a fee dispute. [Circular 230 § 10.28] We keep our working papers for [RETENTION PERIOD].

7. Use and disclosure of your tax information
We will not use or disclose your tax return information for any purpose other than preparing your return without your separate written consent, as federal rules require. [26 CFR 301.7216]

8. Electronic communication and signature
You agree that we may communicate and exchange documents with you electronically through [PORTAL/EMAIL], and that you may sign this letter electronically.

9. Term
This engagement ends when we deliver your returns, or earlier if either of us ends it in writing.

Please sign and return a copy to confirm.

[PREPARER NAME], [CREDENTIAL], [FIRM NAME]

Accepted: ____________________   Date: __________