Any changes to your 2022 individual tax engagement letter?

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#1
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22-Apr-2014 12:02am
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Lower 48
I'm curious what additions you plan to add to this year's tax engagement letter. For the 2022 tax year, I'll be adding a paragraph regarding Form 1099-K and that I'll need a copy of it. Maybe a little more emphasis on cryptocurrency.

What other items are you adding this year?
 

#2
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4-Mar-2018 9:03pm
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The Office
I haven't gotten to it yet, but I expect minimal changes.

My engagement letters already state that it's the client's responsibility to provide all source documents to me, including copies of informational returns filed with the IRS. I don't know that mentioning form 1099-K in the engagement letter and not any other informational returns is beneficial or advisable. Engagement letters define scope and responsibilities.

I will send a short eblast, likely in early January notifying clients of the new 1099-K changes and how those may affect clients. I'm also going to add form 1099-K to my 1040 organizers as a specific form to watch out for. I think the organizer is a much better place to mention this form if you use organizers in your practice.
 

#3
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21-May-2018 7:50am
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Northern MI and Coastal SC
I am going more uniform route for all tax engagements. I am tired of having slightly different ones for each frickin' filing entity. Basically, "this is Firm's responsibility" and "everything else is yours." "This is what we may be held liable for" and "you are liable for everything else." Another new one, because of a few clients last year, is "NO assurance that tax returns will be filed timely if we believe information is missing or incorrect."

I think I am going to upload a PDF doc of common tax forms an individual or business may receive that I need copies of (that is a change--I am specifically referencing COPIES since I do not want ORIGINALS and to serve as custodian of them for any period of time). It is in checkbox form, so they can go down the list of what they receive or think they will receive. I could make it part of my questionnaire but I really want to simplify those, too.
 


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