Dear client,
Thank you for selecting Apexvista Tax Consulting, LLC to assist you in preparing your corporate income tax returns. This letter confirms the terms of our engagement and the nature, timing, and limitations of the services we will provide. You received this letter because we understand that you are the partnership representative. If that is not correct, please tell us who is the partnership representative so that we can coordinate tax return preparation with the right party.
We will prepare your 2024 federal and state income tax returns from information you furnish us. We will perform limited analysis of your accounts, as we deem necessary in our professional judgment, solely for purposes of preparing your tax returns. We may propose adjusting journal entries to your accounts. Our analysis cannot be relied upon to discover defalcations or irregularities; however, we will inform you if we do discover such defalcations or irregularities.
Management is responsible for proper recording of transactions in the accounts, safeguarding assets, and for the accuracy of the financial records. Because you have final responsibility for the tax returns, you should review them carefully before you sign and file them.
We will use professional judgment in resolving issues when the tax law is unclear or when there is conflict among the authorities.
Please note that the filing deadline for the C corporation tax returns is now generally, April 15. In order to meet this filing deadline, we must receive your information in substantially complete form by March 15.
If an extension of time to file is required we will use the information available to us at the time to prepare the extension. An extension, however, only provides you with an extension to file, not an extension to pay. Taxes paid after April 15 will result in late payment penalties and interest.
In addition, if a return is filed late (after April 15 if not extended, or after October 15 if extended), The IRS imposes a penalty for late filing of C Corp tax returns, which is typically calculated as 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid tax.
You are responsible for reporting foreign activities. By signing this engagement letter you acknowledge that you will inform us if you have income from foreign sources, you have signatory authority over any foreign account, or you engage in any foreign transactions with a related entity. If you are unsure whether income or an account is foreign, we will review it. Note that the penalties for failure to report foreign activities are severe.
We will not as part of our services be responsible in any way for providing advice to you with respect to the classification of employees versus independent contractor status or the ramifications thereof from a tax or any other perspective. If you have any questions regarding the classification of employees versus independent contractors or any issues related thereto you should consult with legal counsel experienced in employment practice matters.
Our tax preparation engagement specifically excludes beneficial owner reporting required by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
Your tax returns may be selected for review by the taxing authorities. If the government selects your return for examination, we will be available to assist you. At our discretion, there may be additional fees for this service.
We generally retain, for seven years, the final work product generated for our clients. After the retention period, the documents are destroyed. We do not keep original documents — they are returned to you after completion of the returns. It is your responsibility to retain your records for possible future use, including possible examination by the taxing authorities.
Our fees for tax preparation services are based on the amount of time required at our standard billing rates. All invoices are due and payable upon presentation. Tax returns will not be filed electronically until fees are paid.
If the foregoing fairly sets forth your understanding, please sign the enclosed copy of this letter and return it to our office. Work cannot commence until a signed copy of this document is returned.
Yours truly,
Apexvista Tax Consulting, LLC
