Tax Return Engagement Letter For Businesses (Form 1120, 1120s, 1065) (Page 2 of 3) in pdf

Management is responsible for the proper recording of transactions in the books of

accounts, for the safeguarding of assets, and for the substantial accuracy of the financial

records. You have the final responsibility for the income tax returns and, therefore,

you should carefully review them before you sign and file them.

The filing deadline for the tax return is March 15, 2011 (April 18, 2011 for Partnerships

and LLC’s taxed as a partnership). In order to meet this filing deadline, the information

needed to complete the return should be received in this office no later than March 1,

2011 (March 15, 2011 for Partnerships and LLC’s taxed as a partnership).

If an extension of the time is required, any tax that may be due with this return

must be paid with that extension. Any amounts not paid by the filing deadline may

be subject to interest and late payment penalties.

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 governmental tax examination, we will be available, upon request, to represent you

under a separate engagement letter for that representation.

The cost for preparing this entity’s tax return is a flat fee based on the previous year’s tax

return. This amount may be increased if there have been substantial changes in the entity

during 2010. If a substantial amount of bookkeeping is required to complete the return,

we will charge you for this work at $65/hour. All invoices are due and payable upon

completion of the tax return.

The fee does not include responding to the Internal Revenue Service, any state’s

Department of Revenue or any other governmental inquiries, and the client understands

that the tax preparer is not responsible for Internal Revenue Service disallowances of

doubtful deductions or deductions unsupported by adequate documentation for resulting

taxes, penalties and interest.

Fees for services outside the tax return will be billed as follows:

Tax consulting and planning

$125/hour

Bookkeeping

$65/hour

Accounting/Quickbooks training

$125/hour

This engagement letter does not cover the preparation of any financial statements. Any

services related to the preparation of financial statements will be addressed in a separate

engagement letter.

If the foregoing fairly sets forth your understanding, please sign the enclosed copy of this

letter in the space indicated and return it to our office. However, if there are any

additional returns you expect us to prepare, please inform us by noting so just below your

signature at the end of the returned copy of this letter.

Tax Return Engagement Letter For Businesses (Form 1120, 1120s, 1065) Page 2