2022-23 Sample Client Consent & Agreement Letter – Consultation Services

Dear Client,

Thank you for choosing me to assist you with your tax consultation 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 enrolled agent/tax consultant – stated here within.  

“Consulting” is a broad term used to describe all work that is not specifically tax preparation or client representation [before the tax authorities]. While consultation topics are endless, client education is a huge part of any consultation. The only other two factors consistent across all consulting assignments are: 1) the tax law and 2) your particular set of circumstances. Either one of these can get quite complex. The consulting process always begins with a thorough interview and conversation. This may be followed by research and analysis, and finally, the delivery of a verbal, and when warranted, a written conclusion and instructions. These three phases can happen in one sitting, be drawn out over time or  repeat and intertwine, depending on how long and complex the consultation is. You must be forthcoming with requested information and documents (to the extent possible) and bring a strong desire and willingness to understand your own situation.

The objective of any consultation is to give you the most complete understanding possible, and the clearest action plan and/or decision path possible. Sometimes the amount of time needed for a consultation can be easily foreseen. Other times, not so much. Therefore, a price estimate should not be taken as a price cap. If it becomes evident that the time needed to complete the consultation will extend well beyond that originally thought, I will make you aware at that point. If at that time you should decide not to move forward, the consultation will end, and you will be billed for my time, be the conclusions made adequately complete or not in my assessment.

As mentioned above, if deemed necessary and practical, it is my practice to conclude consultations by providing a written explanation and guidance (via email and sometimes text). This adds to my work, and thus my fee.  However, it is my view that, in many cases, if you do not have something in writing to keep as a reference, then sooner, rather than later, your memory will short-change you, and you will be left with nothing.  

My consulting rate is $175/hour FOR THE FIRST FOUR HOURS and $150/hour for every hour after that. I charge in 5-minute increments. IF you are also a tax preparation client or if this is your second consultation within 8 months, I will not “start the clock over” for the following tax preparation job or new consulting 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.

If you are a new client, and/or depending on the matter for which you are hiring my services, it can oft times be very difficult to predetermine the total amount of time that will be needed to complete the consultation. Thus, any price estimate I give shall not be taken as a price cap. You shall forewarn me if you are not able or willing to pay for my service beyond a certain dollar amount. If the consultation must be stopped short due to your financial limitations, you will not hold me responsible for uncompleted work, inconclusive findings or any actions or inactions you take, as a result of the consultation, that were not completely informed. I will work as efficiently as possible but will not compromise the quality of my work and communication for the sake of saving time. By signing this agreement below, you understand and accept what is stated in this paragraph.

By signing this letter, you agree to provide me with all requested necessary documents and complete and accurate relevant information and to answer all questions truthfully and to the best of your ability so that I may, in turn, provide you with the most precise information and adequate conclusions possible.  You understand that the information, guidance or advice I give does not guarantee any certain outcomes relating to your tax liability or financial circumstances. Furthermore, let it be understood that I do not give legal advice, nor should any explanation or choices presented to you by me be construed as legal advice.

It shall not be my job to verify or secure other assurances related to the information you provide.  I.E., I do not perform any auditing functions related to your tax situation.

I will not share your personally identifying source documents or communications with any third party without your permission. 

Once a segment of the consultation is complete, be it the first and only one, or one of several, I will furnish you with an invoice which you shall pay within three business days of receipt, unless otherwise agreed upon. (Business days are Monday – Friday except for national and personal holidays).

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