Engagement Letters

For those of you who do representation work, where did you get your engagement letter? Anything critical in the letter besides what you will and will not do and your hourly rate?

Tax Resolution Institute has a sample you can use.

https://www.taxresolutioninstitute.org/ ... amples.pdf

The engagement letter isn't binding and offers no actual legal protection.

The engagement letter isn't binding and offers no actual legal protection.

Yes and no. The terms have to be reasonable, and the purpose is to document expectations and responsibilities of each party. The REAL intent is, like any lawyer already promotes, is to muddy up the waters enough that the average client will not pursue any action. But it will not prevent a sophisticated client with deep pockets from fully pursuing a lawsuit.

My attitude is if an insurance company with far more expensive lawyers than I can afford highly encourages engagement letters, and there are plenty of examples of case law where the engagement letters helped or were fully upheld, then it is a step I will take.

And to answer original question, CNA and AICPA offer a ton of templates for virtually any engagement CPAs do.

An insurance company who is only interested in limiting their liability is going to more than happy for you to do a bunch of work that limits their potential payouts? That's a bizarre burden of proof that you should do the work for them.

No, I believe Cornerstone meant your professional liability insurance company. They want you to have engagement letters (may be required to cover you, or may reduce your premiums if you utilize engagement letters) so that they can limit potential payouts due to you/your office/your work.

No, I believe Cornerstone meant your professional liability insurance company. They want you to have engagement letters (may be required to cover you, or may reduce your premiums if you utilize engagement letters) so that they can limit potential payouts due to you/your office/your work.

This. Does it bypass negligence? Heck no. But it certainly muddies up the waters for the average client that may otherwise pursue a claim.

Mine are about to be fully automated, so it is even less work.

I Googled "tax resolution engagement letters" and some how cane up with what Beagle provided. I combined several using the TRI as a basis. Cornerstone is also correct about checking with your insurance company.

If you have MOST liability insurance policies you are asked questions some are - do you require signed engagement letters - do you provide reviews to accounting authorities - if you answer no that usually requires additional premiums or maybe they will not cover you.