Dear Client:

Thank you for selecting AA Allied Tax Accounting Inc. to assist you with your tax affairs. This is to confirm the terms of our engagement with you and the nature and extent of services we will provide.

We will prepare your tax returns (if required) upon your submission request, using information you provide to us. We may ask for clarification of some items, but we will not audit or otherwise verify the data you submit. You should avoid overlooking important information that is part of your contribute to efficient preparation returns. That helps keep the cost of our services as low as possible.

It is your responsibility to provide information required for preparation of complete and accurate returns. You should keep all documents, canceled checks and other data that support your reported income and deductions. They may be necessary to prove accuracy and completeness of the returns to a taxing authority.

You are responsible for the returns, so you should review them carefully before you sign them especially if you do not have complete books and records for this tax year, therefore the use of reasonable estimates in the preparation of certain parts of the attached tax return was used based on your best estimates of income and/or expense item in question. All of the estimated figures were discussed with the tax preparer who believes them to be reasonable under the circumstances based on his/her limited knowledge of the facts and circumstances.

Our work will not include any procedures to discover defalcations or other irregularities. The only accounting or analysis work we will do is that which is necessary for preparation of your income tax returns.

We must use our  judgment in resolving questions where the tax law is unclear, or where there may be conflicts between the taxing authorities’ interpretations of the law and other supportable positions. In order to avoid penalties, we will apply the “more likely than not” reliance standard to resolve such issues. You agree to honor our decisions regarding the need to make protective disclosures in your returns.

Penalties of as much as $100,000 can be imposed on you for failing to disclose participation in “reportable transactions,” that is, certain arrangement the IRS has identified as potentially abusive. We will insist that all such transactions be properly disclosed.

The law also imposes penalties when taxpayers understate their tax liability. If you have concerns about such penalties, please ask us.

Your returns may be selected for audit by a taxing authority. Any proposed adjustments are subject to appeal. In the event of a tax examination, we can arrange to be available to represent you. Such representation will be a separate engagement for which an engagement letter will be provided to you. Fees and expenses for defending the returns will be invoiced in accordance with terms we agree on for that engagement.

Our fee for preparation of your tax returns will be based on the amount of time required at standard billing rates plus out-of-pocket expenses. All invoices are due and payable upon presentation. To the extent permitted by state law, an interest charge may be added to all accounts not paid within thirty (30) days.

We will retain copies of the records you supplied to us along with our work papers for your engagement for a period of seven years. After seven years, our work papers and engagement files will be destroyed. All of your original records will be returned to you at the end of this engagement. You should keep the original records in secure storage.

To affirm that this letter correctly summarizes your understanding of the arrangements for this work, please check Agree before submitting any report.

In Summary, the taxpayer believes the attached tax return represents his or her best, honest and good faith actual or estimate of his or her taxable income for the tax year in question.  if for any reason the taxpayer is able to find or acquire additional information or documentation that will have effect or reflects changes to his tax filing, or substantiation  that would enable him or her to amend this return to more accurately reflect his or her taxable income for that tax year, the taxpayer will do so.

We appreciate your confidence in us. Please call if you have questions.

Sincerely,

AA Allied Tax Accounting Inc.