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Tax Preparation Engagement Letter Template
A tax preparation engagement letter template documents the agreement between a tax preparer and a client before return preparation begins. Send it by SMS, email, link, or QR code for mobile signing.
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What this template is for
A tax preparation engagement letter template documents the agreement between a tax preparer and a client before return preparation begins. It defines the scope of services (return type, tax year, included schedules), client and preparer responsibilities, fee structure, document-request list, and signature block. Pair the engagement letter with separate IRC §7216 consent forms when needed. Formfy does not provide tax, legal, or accounting advice — review every engagement letter with qualified tax professionals before use.
What the AI can include
When you describe your business and how you plan to use this template, Formfy can draft a starting version that includes:
- Service-specific scope language (1040, 1120, 1120-S, 1065, 990, bookkeeping) per engagement
- Client identity and contact fields (with secure handling guidance for SSN/EIN)
- Client responsibilities (timely document delivery, accuracy, recordkeeping)
- Preparer responsibilities (Circular 230, AICPA SSTS reference, confidentiality)
- Fee structure (hourly, fixed-fee, per-form) with payment schedule
- Document request checklist tailored to the return type
- Reference to IRC §7216 consent requirements (separate forms recommended)
- Acknowledgment that Form 8879 e-file authorization is separate from the engagement letter
- Limitations and exclusions (audit representation, planning, legal advice)
- Termination clause and handling of work-in-progress
- Signature block with optional spouse signature for joint returns
Field checklist
Client identity
- Full legal name(s)
- Date of birth
- Address, phone, and email
- SSN / EIN reference (collected with appropriate safeguards)
- Spouse identity for joint returns (optional)
Engagement scope
- Return type(s) (1040, 1120, 1120-S, 1065, 990, sales tax, payroll)
- Tax year(s) covered
- Federal and state jurisdictions included
- Schedules and forms covered
- Specific services excluded (audit representation, planning, legal advice)
Responsibilities
- Client responsibilities (document delivery, accuracy, retention)
- Preparer responsibilities (professional standards, confidentiality)
- Reliance on client-provided information acknowledgment
Fees and terms
- Fee structure (hourly, fixed-fee, per-form)
- Payment schedule and retainer requirements
- Late-fee or collections policy
- Termination clause
Document request
- W-2, 1099, K-1, brokerage statements
- Prior-year return
- Bank and credit card statements (business)
- Mortgage interest, property tax, charitable contributions
- Business books (income statement, balance sheet, payroll)
Disclosures and acknowledgments
- IRC §7216 consent reference (separate forms recommended)
- Form 8879 e-file authorization (separate from engagement letter)
- Circular 230 and professional standards reference
- Audit representation exclusion
Signature
- Client signature with printed name and date
- Optional spouse signature for joint returns
- Optional preparer countersignature
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Send by SMS, email, link, or QR code
Once your engagement letter is ready, send it to clients the way they actually open links — by email, SMS, public link, or QR code. Clients tap the link on any device, review the scope and fees, sign with finger, stylus, or typed signature, and submit. Signed PDFs land in your Formfy dashboard in real time with a full audit trail (IP, timestamp, signer info, signature geometry). Search by client, return type, or tax year when you need to retrieve a record.
Customize before publishing
Every template is a starting point — open it in the Formfy editor to add or remove fields, reword clauses to match your jurisdiction and service mix, add your firm logo and brand colors, set notifications, and connect SMS or email delivery before you publish. Review engagement letter language with qualified tax counsel and your professional liability insurer before going live. Formfy does not provide tax, legal, or accounting advice.
Important note
Formfy does not provide tax, legal, or accounting advice. Tax preparers should review engagement letters and consent forms with qualified tax professionals before use. Engagement scope, fee language, IRC §7216 consent forms, Form 8879 e-file authorization handling, and recordkeeping should match the firm's services, the jurisdiction, and applicable IRS, state, privacy, e-signature, and professional requirements (including Circular 230 and state board rules). Many states recognize electronic signatures as legally equivalent to handwritten signatures under E-SIGN and UETA, but specific signature and consent requirements vary by jurisdiction, return type, and tax year.
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