CONFIDENTIAL ENGAGEMENT LETTER: TAX PLAN(Part A) & BASIC PACKAGE(B)
Dear Client:
We are so excited to work with you, so let’s get the legalities out of the way by confirming our understanding of our tax engagement together, the services you have asked our firm to perform, and the terms under which we have agreed to do that work. Please read this letter carefully because it is important to both our firm and you that you understand what you can and cannot expect from our work.
PART A: INITIAL TAX STRATEGY ACTION PLAN AND IMPLEMENTATION
You acknowledge and understand that you are retaining Meyer Tax Consulting for the purposes of a tax reduction strategy. The firm does not provide legal advice nor will audit the figures provided and will rely on your representations for income, expenses, assets and liabilities in devising a tax strategy and tax plan under current tax law (tax law is constantly changing and what is true now may not be true in the future). Your customized tax strategy plan will not be released until your initial fee is paid in full, referenced in Appendix A. This is a one-time non-refundable fee for our proprietary plan. As discussed during our introductory meeting, this engagement will include all services required to develop a tax plan, including:
· Reviewing and prioritizing your goals and objectives.
· Identifying & researching tax planning strategies to optimize financial position.
· Presenting a tax plan that will be reviewed in detail with you. It will contain recommendations designed to meet your stated goals and objectives, supported by relevant financial summaries.
· Retirement planning in conjunction with your financial team
· Developing an action plan to implement the agreed upon recommendations.
· Referral to other professionals, as necessary, to assist with implementation of the action plan, such as an estate attorney, financial advisor, or a cost segregation real estate study company.
To ensure that the tax plan contains sound and appropriate recommendations, it is your responsibility to provide complete and accurate information regarding pertinent aspects of your personal and financial situation for our detailed review. This includes objectives, needs, and values, along with copies of:
· Prior Tax returns,
· Wills and/or trust agreements
· Powers of attorney,
· Employment benefits,
· Retirement benefits,
· Investment strategies,
· and any other relevant legal agreements.
This list is not all-inclusive and any other relevant information should be disclosed in a timely manner. It is your responsibility to ensure that any material changes to the above noted circumstances are disclosed to me as your tax planner on a timely basis since they could impact the tax planning recommendations.
I have no known conflicts of interest in the acceptance of this engagement. I commit that I will advise you of any conflicts of interest, in writing, if they should arise. I am required to act with professional responsibility as outlined by the Internal Revenue Service. MEYER TAX CONSULTING – ENGAGEMENT LETTER Page 1 of 5
PART B: MONTHLY FEE FOR PLAN
We will provide package services (Detailed in Appendix A) for a one-year term or upon the termination of the engagement, if earlier. If not terminated, the engagement will then continue annually. This will be an on-going professional relationship. At a minimum, we will convene on an annual basis to ensure your plan is still appropriate for you. Either party may terminate this agreement by notifying the other in writing. Any fees incurred prior to date of termination will be payable in full.
INCOME TAX RETURNS: As part of an active monthly plan, we will prepare tax return(s) referenced in Appendix A. It is your responsibility to inform us of any additional states that will require tax returns. We will prepare your above referenced federal and state income tax returns from information that you will furnish us. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of some of the information. We will furnish you with questionnaires and/or worksheets to guide you in gathering the necessary information. Your use of such forms will assist in keeping pertinent information from being overlooked.
It is your responsibility to provide all the information required for the preparation of complete and accurate returns. You should retain all the documents, canceled checks and other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You have the final responsibility for the income tax returns and, therefore, you should review them carefully before you sign them. Our work in connection with the preparation of your income tax returns does not include any procedures designed to discover defalcations or other irregularities, should any exist. We will render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns. You are advised to retain copies of your own tax returns. We will retain tax records and tax returns for three years.
We will use professional judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities’ interpretations of the law and other supportable positions. Unless otherwise instructed by you, we will resolve such questions in your favor whenever possible. The law provides various penalties that may be imposed when taxpayers understate their tax liability. If you would like information on the amount or the circumstances of these penalties, please contact us.
We will also render to you tax advice upon your request. Your returns may be selected for review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available upon request to represent you based on your maintenance plan terms in Appendix A.
If payment is not made by the due date, we reserve the right to suspend or terminate our work. If our work is suspended or terminated, you agree that we will not be responsible for your failure to meet government and other deadlines, for any penalties or interest that may be assessed against you resulting from your failure to meet such deadlines, and for any other damages (including consequential damages) incurred as a result of the suspension or termination of our work. We reserve the right to withdraw from this engagement without completing the work if you fail to comply with the terms of this engagement letter. If any portion of this agreement is deemed invalid or unenforceable, the finding shall not invalidate the remainder of the terms set forth in this engagement letter. You consent to the assignment of your account and the transfer of your records in the event that the firm changes its form of ownership, consolidates, sells, and/or merges.
If any unforeseen circumstances arise during the course of our engagement which will impact the completion of our work or the cost, we will suspend our services immediately and discuss the causes, costs and methods of resolving the issue with you before proceeding with the engagement. Our charges for other services will be agreed to separately. In accordance with Firm policy, we require that all invoices be paid within ten days of the due date. If at any time you have any questions regarding services or billing please contact us immediately so that your questions can be responded to promptly, since fees are earned when paid.
FEES
The fees that are charged are for consultation, advice and if the information is provided to us in a timely manner, the services that are identified on this agreement including:
· Have ready access to a tax professional under specified conditions in Appendix A,
· Experience the least amount of tax liability at the end of the tax year,
· Continually evaluate your situation, and
· Design a personalized strategy for you to achieve your goals.
· Respond to requests for advice on specific tax and accounting issues you may encounter, and
· Are always available to meet with you and/or your advisors at various times throughout the year to discuss current business, operational, accounting, and personal financial matters affecting you.
Fees are subject to periodic review and possible change after ninety days. All fees are considered earned when paid and are non-refundable. On its anniversary each year, or at a designated point in the year that this engagement remains in effect, the monthly price will automatically increase by 7% or a reasonable increment. Additionally, this price is dependent on the timely delivery, availability, quality, and completeness of the information you provide. If the information you provide is not submitted in a timely manner or is incomplete or unusable, we reserve the right to charge a premium and expenses for services required to correct the problem. If this occurs, we will contact you to discuss the matter and the anticipated delay in completing our services.
EXCLUSIONS
Fees for additional services outside of the scope of our engagement (services specifically described in this letter) will be subject to a separate understanding before commenced then a) billed at our standard hourly rates of our team, ranging from $50-$300 per hour, billed in 10 minute increments, b) adjusted into a price change of your monthly maintenance fee, or c) subject to a new one-time flat implementation fee.
The parties intend this engagement letter to be the final expression of the terms of their agreement and further intend this letter be the complete and exclusive statement of all the terms of their agreement. This letter supersedes all prior agreements and all agreements made contemporaneously with the execution of this agreement. Any prior agreement or oral contemporaneous agreements may not be used to contradict, supplement or explain this letter. Checking Savings Name on Acct
We believe this letter accurately summarizes the significant terms of our engagement, and I want to express our sincere appreciation for this opportunity to work with you! If you have any questions, please let me know. If you agree with the terms of our engagement as described in this letter, please e-sign and return it to me. There are also IMPORTANT next steps to complete below!
Sincerely,
Meyer Tax, The Concierge CPA
Disclaimer: The templates offered by TaxPlanIQ are intended to serve as a helpful starting point. While we strive for precision, we cannot warrant their completeness or compliance with specific regulations in your area. We encourage you to use them with discretion and to verify that they align with the pertinent local guidelines