ENGAGEMENT LETTER No. 1
NAME OF TAX PREPARER OR FIRM NAME            
Street address of preparer
City, State and Zip of preparer
Telephone number of preparer,   Fax Number of Preparer
Date of Letter

Client Name
Client Address
Client City, State and Zip

Dear [Salutation]

This letter is to confirm our understanding of the terms of our engagement and the nature and
extent of the services which I will provide.
                              
I will prepare your federal and state income tax returns from information that you will furnish. I
will make no audit or other verification of the data you submit, although I may ask you for
clarification of some of the information. In accumulating your tax information, it is important
that you understand the Internal Revenue and State record keeping requirements. Taxing
authorities, by regulation, require you to both maintain and retain information substantiating all
items reported on your returns. Requirements for documentation are especially important for
deductions of travel, entertainment, auto, and computer use. Should you have any questions on
what will satisfy these requirements, I will be happy to advise you. These records must be kept by
you for a minimum of three (3) years.

I will use my judgment in resolving questions where the tax law is unclear or where there may be
different interpretations of the law. I will resolve such questions in your favor if there is
reasonable justification for such a position.

Your returns, of course, are subject to review by the taxing authorities. However, just because
your return is selected does not mean there is a problem. In your interest, it is advisable to contact
me immediately upon receiving correspondence from either taxing agency. I will be available
upon request to represent you and will render additional invoice(s) for the time expended.
If there is an error on the returns prepared from your data, the preparer is not liable for the
payment of the additional taxes that would have been properly due on the original returns or the
interest charged by the taxing agency, since you have had use of the money.

Fees for my services will be computed according to the "Schedule of Minimum Charges" dated
<insert date>. In most cases, fees are due upon completion of the work. I do, however, reserve
the right to ask for retainer fees to be paid in advance of work done.

Any bookkeeping or payroll services will be specific to the client: all terms and conditions will
be addressed separately of any and all tax services. Work is neither audited nor verified. If this
engagement letter correctly expresses your understanding of the nature, scope and terms of the
services which I am to provide, please indicate your agreement by signing and dating this letter in
the spaces provided below and returning it to us.

[Preparer: Name]

[Client: Company contact/Taxpayer name and signatuere] (Date)
[Client: Spouse's complete name and signature]    (Date)