Creating a letter of notification for tax preparation requires proper planning. A letter of notification for tax preparation is used to establish the business relationship between the tax professional and the tax professional's client prior to the preparation of the client's tax return. Certified public accountants, tax attorneys, and any other tax professional authorized to prepare tax returns can use a letter of notification for tax preparation to define the terms of the tax preparation service being offered.
Address your client by their proper name of your intention to prepare their tax return. Start your letter by writing the client's address in the letter's upper left hand corner followed by a single line space where you will write the letter's subject line stating the purpose of your letter which is a notification for tax preparation services. Address your client in the salutation one single line space below the letter's subject line. If you are preparing a personal income tax return or an estate tax return you will need to address the specific individual for whom you are preparing the return or in the case of a joint return the names of both individuals. If you are preparing a letter of notification for tax preparation for a business you will need to address the letter to the appropriate corporate officer such as the chief executive or the proprietor.
Start the body of your letter in the first paragraph one single space line below your salutation by stating your responsibilities and your client's responsibilities. Include a description of the financial information your client will need to provide you with including any receipts, interest payments, dividends, rental income, and wages documentation necessary to complete the tax return. Describe the professional standards you intend to use when interpreting the tax law when and if an issue arises as to the proper interpretation of how to apply a certain provision of the tax law to the client's tax return.
Start your second paragraph one single space line below your first paragraph informing your client that the tax return is their sole responsibility and that you, the tax preparer, cannot be held liable for any misrepresentations resulting from the client's failure to disclose all pertinent financial information necessary to comply with the various tax laws. Indicate that you are available,however, to represent your client in the event they have been selected for a government audit.
Start the third paragraph one single space line below your second paragraph describing the basic fee structure of how you intend to charge your client for the tax preparation service. Include a description of the standard billings rate you charge as well as any additional fees you might be required to charge in the course of completing the tax return.
Complete the letter of notification with a final paragraph one single space line below the prior paragraph asking your client to acknowledge the terms and conditions set forth in the letter. Your client must sign the letter and return the letter along with all of the necessary financial information you requested.