Event Description

In more recent times, the tax profession has become more engagement letter driven. While engagement letters seem to get longer each tax season, it is sometimes difficult to know when they are required and when they are not. Can I answer a quick question from a client without an engagement letter? What happens if a client does not want to sign? Can a preparer ever be liable for penalties related to an engagement? In this course, we will examine these questions and many others related to engagement letters and preparer liability. We will talk about what is required of tax professionals and how an engagement letter protects us. Finally, we will look at some best practices related to client engagement letters.

Objectives

Recall the basic requirements for tax preparers according to Circular 230. 

State the different penalties that can be assessed against tax preparers. 

Identify common clauses in engagement letters. 

Recognize when an engagement letter should be signed by a client.