This is a fill-in starting point for a tax preparation engagement letter — replace the bracketed fields with your firm's details, delete anything that doesn't apply, and send it before any work begins. It follows the components covered in our engagement letter guide: scope, responsibilities, fees, limitations of liability, records, and termination, ending in a signature block.
Pair it with our document checklist template to request files in the same message.
Once it's filled in, send the finished letter for e-signature and keep the signed copy with the client's file.
[Firm Name]
[Firm Address]
[Date]
[Client Name]
[Client Address]
Dear [Client Name],
This letter confirms the terms of our engagement to prepare your [tax year] federal and [state] individual income tax return(s).
We will prepare your [tax year] federal and [state] individual income tax return(s) based on the information and documents you provide. This engagement does not include audit representation, bookkeeping, prior-year return preparation, tax planning, or [other excluded services], unless separately agreed to in writing.
You are responsible for providing complete and accurate information and supporting documents, retaining copies of your records, and reviewing your return for accuracy before it is filed. We will rely on the information you provide without independently verifying it.
We will prepare your return using professional judgment based on the information you provide and apply the tax law as we understand it to apply to your situation. We will let you know if we need additional information to complete your return.
Our fee for this engagement is [fee amount or fee structure]. Payment is due [payment terms — e.g., "upon completion of your return" or "before your return is filed"]. [Optional: late-payment terms.]
[Limitations of liability — have an attorney draft this for your state. Typical language makes penalties and interest arising from client-provided information the client's responsibility.]
To allow time for an on-time filing, please provide all documents by [date]. Documents received after this date may require us to file an extension on your behalf.
We will retain a copy of your completed return and supporting workpapers for [firm's document retention period]. Please retain your own copies of all original documents; we do not retain original documents beyond [retention detail].
We maintain safeguards to protect your information consistent with our firm's written information security plan (WISP) and will not disclose your information except as required to complete this engagement or as required by law.
Either party may terminate this engagement at any time by written notice. You remain responsible for fees for services performed through the date of termination.
Please sign and date below to confirm your agreement to these terms.
[Client Name] — Signature: ______________________ Date: ______________
[Spouse Name, if joint return] — Signature: ______________________ Date: ______________
[Preparer Name], [Title] — [Firm Name]
Engagement letters, proposals, and Form 8879 all e-sign in one place — no separate signing subscription. Free for up to 3 clients; e-signature from $29/mo and proposals from $79/mo.
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