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Engagement Letter

ENGAGEMENT LETTER - TAX PREPARATION

We will ask you to sign a hard copy of this letter before we begin work on your tax preparation.

Introduction.  Thank you for choosing BLUE JAY TAX to assist you with your taxes. This letter confirms the terms of our engagement with you and outlines the nature and extent of the services we will provide.

 

Scope.  We will prepare your 2023 federal and, if required, 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 you submit. We provide tax checklists to help you collect the data required for your return; they may help you avoid overlooking important information. Your careful use of our checklists will contribute to the efficient preparation of your returns and help minimize the cost of our services.

 

Limitations.  We will perform accounting services only as needed to prepare your 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 you to clarify some of the information you submit. We will inform you of any material errors, fraud, or other illegal acts we discover. The law imposes penalties when taxpayers underestimate their tax liability. Ask us if you have concerns about such penalties.  This engagement is limited to tax preparation and will not include tax resolution services after filing your tax return.  Any tax resolution required would be conducted as a separate engagement.

 

Filing options.  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 option you select.

 

Fees.  Our fee is based on the time and/or forms required. An estimate may be provided to you prior to the commencement of our engagement based on the information provided. The final fee may be higher or lower depending on the actual work carried out. Invoices are due and payable upon presentation. All accounts not paid within thirty (30) days are subject to administration fees and interest charges to the extent permitted by state law. Some engagements may require a retainer to be paid in advance of any work.  It is our policy not to release or e-file tax returns until the relevant preparation fees have been paid.

 

Amended returns.  We reserve the right to charge additional fees to prepare amended returns due to information omissions or changes that are required through no fault of our own. 

 

Error corrections.  In case we make an error in preparing your tax return, which is not the result of any document or information omissions or misrepresentations by you, we will make the necessary corrections at no additional fee to you. We will pay any resultant penalties and/or interest. You will remain responsible for any additional taxes due. 

 

Protection Plus Insurance.  We offer Protection Plus insurance that can be purchased at the additional cost of $64.95. The policy will cover you in the event of an audit; if you receive any notice from the IRS, Protection Plus will provide up to $1,000,000 of services towards achieving a resolution.  If you have an identity theft issue, the company will provide complete ID Theft Restoration services. If you are interested in this policy, please ask for the details. 

 

Your Information.  We will return your original records to you at the end of this engagement. We store these records, along with all supporting documents, in a secure location.  By law, we are required to keep copies of some documents for three years.  We may retain our work papers from your engagement for up to four years, after which these documents will be destroyed.  Should you need us to provide copies of any retained documents, then we will charge an administration fee starting from $30.

 

Your Filing Responsibilities.  Review all tax-return documents carefully before signing them. Our engagement to prepare your tax returns will conclude with the delivery of the completed returns to you and our e-filing of them.  If you have not selected to e-file your returns with our office, you will be solely responsible to file the returns with the appropriate taxing authorities. 

 

Acceptance.  To confirm that this letter correctly summarizes your understanding of the arrangements for this work, sign at the bottom of this letter in the space indicated and return it to us. 

 

To acknowledge that any changes required due to the omission of Form 1095-A (Health Insurance Marketplace Statement) will result in an additional fee of $80, please initial here_________.

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