Course 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.

Learning 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.

Additional Required Materials

  • Level: Overview

  • Field(s) of Study: Taxes (NASBA); Federal Taxation (IRS); Characteristics and income taxation of business entities (CFP)

  • Who Should Attend: Tax practitioners, small business owners, and other accountants looking to serve their companies or clients in the areas of payroll services or operations.

  • Required Knowledge: None

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.