Corporate Tax Return Engagement Letter, Sample & Format
A corporate tax return engagement letter is a formal letter which offers a client to get bound with tax filing company. The letter should be drafted properly so that the engagement letter forms the basis for an enforceable contract and it should also include the amount of risk inherent in the engagement. The letter should have an enclosure of payment terms and conditions, advance fees, late fines, additional fees, and stop-work terms in case of failure in payment need to be addressed. Clarity and attention must be highlighted in the above section, as a misunderstanding of these provisions has led to decrease in the number of clients resulting in shut down of such tax filing firms.
Since it is an engagement letter a formal and professional tone has to be maintained. The letter must include the types of tax filing which will be offered by the company. Go through the following sample to get an idea of things to be necessarily included in the letter.
This is a sample of Corporate tax return engagement letter.
AdiPLab Tax Return, Inc.,
Nucleus Mall, Draven Road,
Subject: – Preparation and filing up of corporate tax.
This letter is to confirm and specify the terms and conditions of our engagement with you and to clarify the nature as well as the extent of service we will be providing to you in due course. To ensure an understanding of our mutual responsibilities, we ask you to confirm the following arrangements.
We are liable to render services which include preparation of the central, state, and local income tax returns with supporting schedules, the GST(goods and services tax) is also supported if so be the case. We’ll perform a limited amount of bookkeeping and analysis necessary for preparation of the income tax returns. The returns will be prepared from the information you will provide us with. We will not audit or otherwise verify the data you submit, although we may ask for clarifications on some of the information provided. It is your sole responsibility to provide all necessary information required to file an accurate return. Fee for these services will vary, depending upon the time required at standard billing rates and additional out of pocket expenses. All invoices are due and must be paid in full upon presentation.
The fee for these services will be based upon the time required at standard billing rates and all other additional expenses made. All invoices are due and payable upon presentation. The law levies different penalties for understating the tax statement. In that regard, you must acknowledge the penalties and punishments as your responsibility. Ranchi High Court shall be considered the exclusive jurisdiction for resolving disputes regarding this agreement.
If the preceding is acceptable to you, then return a signed copy of this letter in the space provided. For any further query contact our head office. As you have final responsibility for income tax returns and will be signing under penalties of perjury, please review and clarify your doubt as for your priority.
We are thankful for this opportunity to work with you.
Very Truly Yours,
AdiPlab Tax Returns, Inc.