2022-23 Sample Client Consent & Agreement Letter – Tax Preparation

Dear Client,

Thank you for choosing me to assist you with your tax return preparation and filing needs. This letter serves as a written record of our mutual understanding and agreement regarding the expectations and responsibilities of each party – “you”, the client AND “me” or “I”, the tax preparer – stated here within. 

When you make available to me source documents and information, you are thereby giving me permission to look at and use said documents/information in the preparation of the tax returns (or any other related submission) you’ve hired me to prepare.  

I will not share your identifying information, source documents or communications with any third party outside my business without your permission.  Any paper copies of source documents you provide to me will be returned to you when you come to retrieve them upon completion of the tax return(s).

You will provide me with all requested documents and information and will answer all questions related to your tax returns truthfully and to the best of your knowledge.  I will prepare your returns based on this information and apply the relevant current tax law for both (y)our benefit and protection. While it is my practice to make sure your documents and information are complete, correct and coherent, the preparation of your tax returns does not imply any verification or other assurances related to the information you provide.  I.E., I won’t be performing any auditing functions. You acknowledge that, in case of an audit or other inquiry by a tax agency, it is your responsibility to provide any and all documentation and verification of items on your return(s).

IF, after I begin your tax return preparation, including time spent to first review documents or perform necessary research, you change your mind and would not like me to complete or file the return(s), you will be charged for my time spent up until that point.  I will then return to you all your paper copies of source documents and/or delete any digital copies of said documents I have.  Initial here:  ___________

Your signature on a return’s e-file authorization page, or paper-filed return, represents your declaration, under penalties of perjury, that you have EXAMINED THE RETURN(S) including accompanying schedules and statements, and that, to the best of your knowledge and belief, they are true, correct and complete.  Thus, before filing the return(s), I will first provide you with a copy to carefully review.  You accept the responsibility of making sure that all personal and bank account information on the return(s), as well as income amounts and deductible expenses sourced from you, are correct. You will inform me of any mistakes or omissions made. I will correct them and submit to you a new copy of the corrected return(s) for a second, final review. If after filing, consequences (financial or otherwise) arise from incorrect or omitted source information due to no error of mine, I shall not be held financially responsible for those consequences. I will help in trying to resolve and mitigate, while charging my hourly consulting rate.  Initial here:  ___________

In order for your tax return(s) to be filed, I must retain 1) your signature(s) on the appropriate forms and 2) payment for the tax preparation service provided.  With the exception of your being on vacation, out of town or having a family, medical or work emergency, once I make available to you your completed tax return(s) for review, you shall review them, sign and pay within seven calendar days. Initial here:  ___________

I accept payments via check or Zelle. I do not accept credit card payments. Your tax return(s) will be digitally archived and made available to you for seven years, as long as you remain my client. However, in the case that you fail to pay any invoice of mine for any services rendered after repeated attempts to collect payment, then your access to these digital archives will be suspended until payment is received.

My tax preparation rate is $175/hour FOR THE FIRST FOUR HOURS and $150/hour for every hour after that. I charge in 5-minute increments. “Tax Preparation” encompasses the following: interviewing [you, the client]; creating your customized tax prep checklist; reviewing the info and docs you provide, communication, consulting and education intrinsic to the tax return preparation, and, of course, the tax return preparation itself, as well as reviewing, signing, e-filing and, if necessary, printing the returns. If during the tax preparation process, it becomes clear that more time is needed than originally estimated, I will do my best to let you know at that point.

IF you have been a consulting client within the last 6 months (within a calendar year or not), or if this will your second tax preparation job (one year’s tax return set equaling one “job”) within the previous 3 months (within a calendar year or not), I will not “start the clock over” for this tax preparation job. In other words, the previously stated $175/hour for first four hours will not apply and instead the rate will be a flat $150/hour, still charged in 5-minute increments.

GETTING ALL YOUR INFORMATION TO ME AT ONCE AND IN AN ORGANIZED, COHERENT FASHION WILL HELP KEEP YOUR TAX PREP FEE FROM RISING. If I need to keep coming back to you for missing information or clarification, that adds time.

Extension Filing: The minimum fee for extension filing is $200. If it is possible, and time is willing, to estimate an anticipated federal and/or state balance due to be paid with the extension(s), the fee for extension filing will be one half of the estimated final tax preparation bill.  The amount paid will later be discounted from your final tax preparation bill.

If all the source documents and information needed in order to complete your return(s) are not provided to me at least THREE weeks prior to the filing deadline, I will not be held responsible for failure-to-pay penalties and interest that may be incurred for lack of time needed to determine possible federal and/or state balances due.

In the case that I commit an error or omission on your return(s) that is not related to the accuracy of your source documents and information (reference to paragraph six above), and as a result of this error or omission you receive a notice from a government tax agency, the following applies: I will take the steps necessary to correct the error, resolve the matter and help you respond to said notice in a timely fashion, free of charge. Furthermore, if you are assessed a penalty and/or interest by the government tax agency, I will reimburse you the cost of that penalty and/or interest (not tax) UP TO the amount of your tax preparation fee. These conditions apply provided that you 1) TEXT OR CALL me to alert me to the notice (not just email) and 2) furnish me, either VIA THE SECURE FILE-SHARING SITE OR BY MAIL OR IN PERSON, with a complete and legible copy of said notice within EIGHT calendar days after the “notice date” stated in the notice. This is in order to allow time for careful examination and response by the response deadline also stated in the tax notice. If you don’t provide me with a complete copy of the notice until after the aforementioned EIGHT calendar days, I will charge you $50/hour for my time spent resolving the matter and responding to and/or speaking with the tax agency. If you don’t provide me with a complete copy of the tax notice until a time that is within just two weeks of the response deadline stated in the notice, I will charge you $100/hour. You agree to this. Initial here:  ___________ 

None of the conditions in the above paragraph shall apply if your receipt of a tax notification, assessed penalty or interest is a result of your own accidental or purposeful withholding of information, failure to furnish me with accurate and/or complete information, failure to keep personal records or failure to review the return(s) as specified in paragraph four above.  In such cases, you will be charged my regular hourly consulting rate (not those stated in the above paragraph) for the time required to rectify the matter, that is if you wish to hire me to do so.  Initial here:  ____________

This agreement covers only the preparation and filing of your tax return(s) and does not apply to representation services [before a tax authority] or  to correspondence assistance with tax notices unrelated to the tax returns I prepare, or to additional consulting services.

 We (I/you) have read and agree to the terms of this agreement.