Note: The
following standard engagement letter is used by me in the preparation
of
individual engagement letters for different clients and is not an offer
to provide any services to anyone or everyone who happens to be reading
this web document. It is included on my web site for the convenience of
those who have a serious interest in my services. If I agree to assist
a
specific taxpayer, the terms of the specific engagement letter will be
modified to fit the requirements of that client.
This specific engagement letter is for those who wish to secure advice on specific and limited issues and who do not want tax preparation services.
Limited
Tax Consulting
Service Engagement Letter Month 00, 2007 Name Address City, State, Zip Dear __________: Thank you for your interest in my professional services. In order to minimize any possible misunderstandings as to the scope of the work that you want me to do for you and the payment for such services, this Engagement Letter sets forth our understanding regarding the assignment and constitutes our agreement as to the scope of the services and the fees for such services. Please be sure that this letter does in fact reflect your expectations before returning a signed copy to me with the requested retainer. You have asked me to 1. _____________ 2. _____________ 3. ______________ My responsibilities are limited to the tasks you have identified above. If you do not retain the services of a public accountant and/or financial planner you hereby agree that you are not expecting me to provide the services typically provided by public accountants or financial planners. Although accountants now have some accountant-client privilege with respect to communications between the client and accountant regarding tax matters, such privilege is very limited. By signing this engagement letter, you are in effect waiving the opportunity for privileged communication by retaining an attorney, who would then retain me (or another accountant) to assist him as required. I have enclosed as a part of this agreement a brief explanation of the attorney-client privilege and the accountant-client privilege. Because of the extreme size and complexity of the tax law, and the frequent changes in the tax law, I may need to devote some time to search through various reference sources to find answers to questions about various tax issues. Before undertaking more two hours of such research, I will contact you and give you the option to (1) authorize me to continue the research, or (2) to seek help from a person who specializes in that segment of the tax law. I will also provide you with suggestions and contact information regarding any tax professionals who are known to be specialists in the subject area. If assistance is provided by other professionals, you will need to (1) enter into a service agreement with such professional, or (2) provide an advance retainer to me for the full amount of any fee that I may become obligated to pay on your behalf. My commitment to you is limited to the specific issues for which you have sought my help. This agreement includes and incorporates the enclosed Disclaimer Notice which describes the types of services I am not offering to provide and that will not be part of this engagement. The Disclaimer Notice also discusses various matters that could become a source of a misunderstanding relative to your expectations regarding my services. This engagement agreement does not include tax preparation services or comprehensive tax planning services. A separate engagement letter will be provided if such services are requested. If you have failed to file any required information returns for any foreign entities or investments, you could be subject to potential penalties for late filing even if no tax is otherwise due. In order to provide the assistance you have requested, I will need the following information from you. My work will not commence until that information is provided.
My services are being offered to (_____________) and these recommendations may not also be in the best interest of your spouse, children, parents or any business that you may own or in which you have a substantial ownership. There may be occasions when it will be in the best interest of these persons or companies to seek separate counsel. When services are provided to a married couple, any recommendations made are not applicable to either spouse in the event of a divorce or separation. My fees and billing procedures are set forth in the enclosed Schedule of Fees, which is a part of this agreement regarding my services on your behalf. Fees will be billed on a monthly basis for work in progress after the accumulated billings have exceeded the retainer provided. As described in the enclosed Disclosure Memorandum, I work by myself and do not have any employees to assist me. You can therefore be sure that your work will not be delegated to a less experienced professional but my fees may be higher than if I did have less expensive staff to do some of the work. I charge clients by the hour rather than by the task or assignment. This means you can limit the cost of this service engagement to a specified amount. It also means that you can discontinue this service engagement at any time and you are not obligated to pay for any time that has not been used on your behalf beyond the date you ask me to discontinue the engagement. Conversely, you agree to pay for any services provided up to the date you ask me to discontinue the engagement. This agreement may be terminated by either party but if the agreement is terminated by me, any unbilled time will not be payable after the notice of termination. I will provide the best results that I can within the time limit imposed by the fee that you agree to pay, but I can't guarantee that the work will be complete within that amount of time. Any estimates provided as to the time required to complete the work you have asked me to do for you is not a guarantee and is not binding. In the event that this assignment may result in a future inquiry from the IRS, I will attempt to assist you as much as possible, but such assistance will constitute a new engagement of services. You have indicated that you wish to limit the fee for this service engagement to no more than $_______, plus any out-of-pocket costs, unless you subsequently agree to modify the scope of the engagement. You agree to pay me a retainer equal to one half (30%) of the maximum fee set forth above. In the event that either of us should terminate this engagement for services, any part of the retainer that has not been utilized for services provided will be refunded. The enclosed Disclosure Statement provides information that might be pertinent to your decision as to whether you wish to retain me as a tax consultant and is therefore enclosed as a part of this agreement. I make every reasonable effort to avoid any errors or omissions in the services or advice that I provide to clients. However, the tax law is voluminous, ambiguous and constantly changing. My liability for any errors or omissions will be limited to a full refund of the fees paid and will not include liability for any consequential damages. Any claim for damages will expire within two years of when the final billing is mailed to you. My liability is also limited to you and any recommendations provided to you may not be used or relied upon by any other parties. The IRS may disagree with my conclusions or opinions so I will only be responsible for refunds of fees where I have failed to inform you of the potential consequences of pursuing a particular course of action or series of transactions. You will, of course, be free to follow or to disregard, in whole or in part, any recommendations I may make. You will be responsible for any and all decisions regarding the implementation of any of my recommendations. However, if you should elect not to implement my recommendations, you will thereby waive any claim for a refund of any fees. Payment can be made by a check or money order payable to Vernon K. Jacobs. I will provide an invoice for professional services and related costs. For brief phone consultations of less than two hours, a credit card can be used to make payment through Offshore Press, Inc. If you agree to the terms and conditions for the provision of services as provided in this Engagement Letter, please indicate your acceptance by executing the enclosed copy of this letter below and by returning it with the agreed upon retainer Very truly yours, Vernon K. Jacobs, CPA I agree to and accept the terms and conditions set forth in the foregoing letter. Date _________________ By _____________________________________ Client Name ________________________________________________ I agree to and accept the terms and conditions set forth in the foregoing letter. Date _________________ By _____________________________________ Name Vernon K. Jacobs
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