Problem
What protections do engagement letters offer tax preparers and/or their clients? How would you, the tax preparer, be impacted if your client informs you that they had $4,800 of deductible contributions but could not produce supporting documentation and then they are audited by the IRS and told that the $2,300 has been disallowed?
Will you use an engagement letter when preparing tax returns for a fee? Why or why not?