222 International Drive * Suite 160 * Portsmouth, NH 03801


 ENGAGEMENT LETTER FOR INCOME TAX PREPARATION:


*Read Carefully*


This letter outlines the terms and conditions by which you (“you”, “client”, or “your”) have engaged Anne Holliday, CPA, PLLC (“we”, “us”, or “our”) to provide you with tax preparation services. By clicking the checkbox on the following Tax Questionnaire, “Yes, I agree to the Terms and Conditions outlined in the 2021 Engagement Letter for Income Tax Preparation”, you have digitally accepted and confirmed your understanding of our tax preparation engagement for the 2021 Tax Year, as outlined below.


Services:

We will prepare your 2021 Federal and state income tax return(s), and 2022 estimated payments, as may be required, based solely on information provided to us by you. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of some of the information. We will provide you with a Tax Questionnaire, and Tax Organizer (if requested), to assist you with compiling your tax data. You represent that the information you are supplying to us is accurate and complete to the best of your knowledge and that you have disclosed to us all relevant facts affecting the returns. Your use of the Tax Organizer will assist in keeping pertinent information from being overlooked.


We are being engaged to provide the preparation of your tax return(s) for the above referenced year only. No tax planning services are being provided. We would be pleased to provide additional services upon your request.

We will prepare your tax return(s) using the same filing status and dependants as the previous year, unless you tell us differently. Upon your specific request, we will calculate your tax liability using “Married Filing Jointly” and “Married Filing Separate” tax statuses in order to determine which results in a lower tax liability.

Also, upon your specific request, we will make retirement plan contribution calculations relative to the impact on your tax liability.


Our engagement will be complete upon successful electronic transmission of your returns to the necessary Federal and/or state taxing authorities. Tax return(s) that cannot be electronically filed will be sent to you for your review, signature(s), and paper filing via Certified U.S. Mail with Return Receipt Requested.


Professional Judgment:

We will use our professional judgment in resolving questions where the tax law is unclear, or where there may be conflicts between taxing authorities’ interpretations of the law and other supportable positions in accordance with IRS guidelines.


If, during our work, we discover information affecting your prior year tax returns, we will make you aware of such information; and we will advise you of any measures that may be necessary to resolve any issues raised. However, we cannot be responsible for identifying all items that may affect prior year returns. If you become aware of any information during the year that may affect a prior return, please contact us to discuss the best resolution of the issue.


Client Responsibilities:

Please note that it is your responsibility to ensure that all information necessary to prepare your tax return(s) is given to us. Since the returns will be prepared based on the information you provide, you should closely follow the Tax Questionnaire and/or Tax Organizer when assembling your tax data. The original tax data that you submit to us will be returned to you for your safe keeping. You should retain all the original documents, bank statements, and other data for the basis of income and deductions for at least seven years. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. As the taxpayer, you have the final responsibility for the income tax return(s) and, therefore, you should review them carefully before you sign the Form 8879 – Authorization to E-File – and/or the tax return(s).

 

Bartering Transactions, Charitable Contributions, Travel and Phone Expenses, and Business Usage of Autos:

You should know that IRS audit procedures will almost always include questions on bartering transactions and on deductions that require strict documentation such as charitable contributions, travel, and expense for business usage of autos. In preparing your returns, we rely on your representations that we have been informed of all bartering transactions and that you understand and have compiled the documentation requirements for your expenses and deductions. If you have questions about these matters, please contact us.

 

Errors, Misrepresentations, Fraud, Illegal Acts, Theft:

Our office will not attempt to discover errors, misrepresentations, fraud, illegal acts, or theft. Therefore, we have not included any procedures designed or intended to discover such acts, as we have no responsibility to do so. We will only render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax return(s). Additional fees may apply for such assistance by our office.

 

Examination of Returns:

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 examination, we will be available, upon request, to represent you. Fees for audit representation will be billed separate from this engagement, and an engagement letter outlining the scope of the audit representation engagement will be required.

 

Revision of Returns:

Should a tax return require revision after completion through no fault of our office, additional fees will apply. Any tax return requiring revision due to a preparation error will be revised at no additional cost to you.

 

Fees:

Our fees for tax preparation will be based upon our standard rate for time spent. Our minimum fee will be $400. An invoice for tax preparation will be enclosed with your completed tax returns. This invoice is due and payable upon presentation. An additional $10 re-billing charge will be assessed every thirty days that the invoice, or any part thereof, remains unpaid. If the services of an attorney are necessary to collect our fees you will be responsible for those costs as well.


We reserve the right to assess a $250 Rush Fee for clients requesting tax returns to be prepared within 10 business days of the filing deadline.


E-mail:

In connection with this engagement, we may communicate with you, or others, via email transmission. As emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, including any consequential, incidental, direct, indirect, or special damages.

 

Filing Deadline and Extensions:

Our e-filing deadline for tax returns is April 8, 2022. Signed Form 8879 – Authorization to E-file – must be received before 5pm on this date to ensure timely filing. If you are unable to meet our deadline, or you specifically request, an extension will be prepared at an additional cost. As a reminder, ALL tax liabilities are due and payable on or before April 15th. If an extension is filed showing no balance due and the later prepared return shows a balance due, the extension is null and void, and late filing, late payment, and other penalties may apply.


Tax Liability:

The client is responsible for the payment of all taxes, interest, and penalties due. It is important for you to know that the law imposes a penalty if a substantial understatement of tax liability is made. For individual taxpayers, a substantial understatement is when the understated tax for the year exceeds the greater of 10% of the tax required to be shown on the return, or $5,000. The penalty is 20% of the tax underpayment.


Acknowledgement:

Notwithstanding anything contained herein, both Anne Holliday, CPA, PLLC and you agree that regardless of where you are domiciled, and regardless of where this agreement is physically signed, this agreement shall have been deemed to have been entered into at our office located in Rockingham County, Portsmouth, New Hampshire, and this location shall be the exclusive jurisdiction for resolving disputes related to this agreement.


This agreement shall be interpreted and governed in accordance with the Laws of New Hampshire.

The foregoing is in accordance with my/our understanding of your engagement to provide 2021 tax preparation services. I understand that I/we am/are ultimately responsible for the accuracy and completeness of my/our tax return(s). The terms described in this letter are acceptable and are hereby agreed to.


Please click the following link to complete the Tax Questionnaire and accept and acknowledge the Terms and Conditions set forth. Please allow 15 - 20 minutes to carefully complete.


https://annehollidaycpa.com/1040taxquestionnaire.html

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