Editable format of Letter of Commitment

The Tax Preparation Engagement Letter Template is designed for tax professionals seeking to standardize and streamline the service engagement process. From the first paragraph, the document clearly establishes the relationship between the firm and the client, specifying the date of issue, contact details and general scope of the engagement, which facilitates immediate understanding of the subject matter of the service and avoids misunderstandings in the workplace.

Each section of the .docx has been carefully structured to cover all critical aspects of tax service delivery:

• Header and client data: date, e-mail contact, client’s name and representative, clear references to the entity and purpose of the letter.

• Scope of services and fees: definition of covered services (preparation of the federal return), flat fee per entity and payment terms at the time of signing the letter.

• Document retention and expenses: procedures for billing additional costs (travel, copying, mailing), handling of client documents and retention/destruction policy.

• Electronic communications: authorization to use e-mail (even without encryption) and warning about interception risks.

• Grounds for termination: the right of the firm to withdraw for non-payment, failure to cooperate or conduct that impedes the provision of the service.

• Circular 230 disclosures: disclaimer on the scope of tax advice and U.S. Treasury regulations.

• Mandatory arbitration clause: method of dispute resolution by arbitration and waiver of jury trial, including time limits and suggested location.

• Card payment authorization form: final section to collect the customer’s credit card data and authorize automatic charging.

The file is fully editable in Microsoft Word and compatible with Google Docs. The variable fields are marked with markers ([CLIENT’S NAME], [FEE], [STATE], etc.) to facilitate customization before sending it to the client.