ENGAGEMENT LETTER
The purpose of this letter is to confirm the understanding between the undersigned (client) and Abacus CPAs, LLC. an accounting firm located in Springfield, Missouri.
1. Abacus CPAs, LLC. is engaged to prepare federal and state income tax returns on the client’s behalf beginning with the year of the date of signature below. Abacus CPAs, LLC. will continue to prepare client’s tax returns annually until client notifies Abacus CPAs, LLC. in writing that client no longer requires Abacus CPAs, LLC. services or client has terminated contract with sponsoring company.
2. Abacus CPAs, LLC. fees for preparing your tax returns will be based on our normal operating procedures. Abacus CPAs, LLC. will collect additional fees as specified in Abacus CPAs, LLC. current rate schedule for any additional work required on client’s behalf. Standard fees will be collected on a periodic basis through the company that the client operates under beginning with the month of engagement.
3. Abacus CPAs, LLC. has no responsibility for the funds collected by client’s company until those funds are remitted to Abacus CPAs, LLC.
4. Client will ensure full payment of tax preparation fees prior to client receiving final tax returns.
5. If client discontinues Abacus CPAs, LLC. services prior to year-end tax returns being filed Abacus CPAs, LLC. reserves the right to retain any and all funds paid to Abacus CPAs, LLC. for signup, setup, marketing expenses, and ongoing work related to client.
6. Abacus CPAs, LLC. will use its judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities’ interpretation of the law and what seem to be other supportable positions. Abacus CPAs, LLC. will resolve such questions in client’s favor whenever possible.
7. Client represents that the information provided to Abacus CPAs, LLC. is accurate and complete to the best of the client’s knowledge. Abacus CPAs, LLC. will review the information and supporting documentation and may ask for additional information or clarification of certain items. For most expenses the law specifically requires that records indicating the amount, time, place, and business purpose of the expense must substantiate any deductions.
8. Client agrees to allow Abacus CPAs, LLC. to gather settlement information from the company that Client drives for. In addition, Client agrees to allow Abacus CPAs, LLC. to share monthly operating statements with the company that the client drives for.
9. Abacus CPAs, LLC. may, at its option, for any reason automatically file for an extension on behalf of client to extend the tax return filing deadline. If Client has not provided all documentation by March 15 for the proceeding tax year, Abacus CPAs, LLC. may very likely need to file an extension on behalf of client.
10. The Client is reminded that the law imposes a penalty if taxpayer makes a substantial understatement for tax liability. The Client is ultimately responsible for the tax return and therefore, should review them carefully before signing and filing them.
11. Should the client’s return be selected for examinations by tax authorities, Abacus CPAs, LLC. will provide representation for the client before these authorities and prepare any refund claims or protest that may be necessary to obtain a final determination of client’s income tax liability. Clients will be billed at Abacus CPAs, LLC standard rates, plus out of pocket expenses for these services.
12. Client agrees that Abacus CPAs, LLC. liability for damages under this agreement, regardless of the form of action, shall not exceed the total amount paid for the services described herein. This shall be client’s exclusive remedy. This engagement letter shall be governed as to validity, interpretation, construction, effect, and in all other respects by the law and decisions of the state of Missouri.
AGREED TO AND ACCEPTED: The forgoing is in accordance with client’s understanding of Abacus CPAs, LLC. engagement to provide tax services. By providing us the information necessary to prepare your tax returns, you accept the terms of our engagement outlined in this letter and the enclosed rate sheet. Abacus CPAs, LLC. appreciates this opportunity to serve you.