client engagement letter - portal.clientwhys.com · dear client, this letter is to confirm and...

Wicker Leisy Engagement Letter— of 3

January 19th, 2018

CLIENT ENGAGEMENT LETTER ——————————————————————————

Dear Client,

This letter is to confirm and specify the terms and objectives of the tax services engagement with you and Wicker Leisy, LLC, an Oregon limited liability company (“us,” “our,” “we,” or “Wicker Leisy”), and to clarify the nature and limitations of the tax services we will provide. In order to ensure an understanding of our mutual responsibilities, we ask all clients for whom tax services will be provided to confirm the following arrangements.

SCOPE OF SERVICES ——————————————————————————————We will prepare your 2017 Federal and Oregon Individual Income Tax Returns from information which you will furnish to us. We will not audit or otherwise verify the data you submit, although it may be necessary to ask you for clarification of some of the information.

It is your responsibility to provide all the information required for the preparation of complete and accurate returns. You represent that the information you are supplying to us is accurate and complete to the best of your knowledge. You should retain all the documents, cancelled checks and other data that form the basis of these returns. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. You have the final responsibility for the income tax returns and, therefore, you should review them carefully before you sign them.

Our work in connection with the preparation of your Individual Income Tax Returns does not include any procedures designed to discover defalcations and/or irregularities, should any exist. We will render such accounting and bookkeeping assistance as determined to be necessary for preparation of the income tax returns. We reserve the right to withdraw from this engagement if for any reason we feel determine the information provided to us presents a risk that we will not undertake. You agree to hold us harmless from any resulting damages that may occur by our withdrawal.

In the course of preparing income tax returns, we may have to request missing or corrected data from you in order to provide a complete and accurate work product. We strongly suggest that you provide the requested data promptly and with due care. If the answers or data you provide are still incomplete and/or will not correct the problem described, then we may request the data again. Any failure to provide timely cooperation, and to do so on a timely basis, will impede our services and may require us to suspend our services or withdraw from the engagement. Additional time spent by our office to request missing or corrected data will impact total fees charged for the tax return preparation.

In the event your tax return cannot be completed by the due date, it may become necessary for us to apply to extend the due date. Extensions are required when we do not receive information needed to prepare a tax return on a timely basis. We need to receive all necessary information for completion of


your 2017 tax return preparation no later than March 15, 2018. Applying for an extension of time to file does not extend time to pay the tax due. We are available to discuss this matter with you or to perform an estimated tax payment calculation, at your request, should the need arise. Additional time spent by our office to apply for an extension or to calculate an estimated tax payment will impact total fees charged for the tax return preparation.

Your returns may be selected for review by the taxing authorities. In the event of such government tax examination, you may be requested to produce documents, records or other evidence to substantiate the items of income and deduction shown on a tax return. Any proposed adjustments by the examining agent are subject to certain rights of appeal. If an examination occurs, we will be available upon your request to represent you if you so desire. However, these additional representation services are not included in the fee for tax return preparations and will render additional invoices for the time and expenses incurred.

The law provides various penalties that may be imposed when taxpayers understate their tax liability. If you would like information on the amount or the circumstances of these penalties, please contact our office.

FEES ————————————————————————————————————Our fee for the Individual Income Tax Return preparation services described in this letter will be based upon the amount of time required at standard billing rates plus out-of-pocket expenses. All invoices are due and payable upon presentation. Invoices unpaid 30 days past the billing date may be deemed delinquent, and are subject to an interest charge of 1.0% per month. We reserve the right to suspend our services or to withdraw from this engagement in the event that any of our invoices are deemed delinquent. In the event that any collection action is required to collect unpaid balances due us, you agree to reimburse us for our costs of collection, including attorneys’ fees.

CONCLUSION OF SERVICES ————————————————————————————Our services will be concluded upon delivery to you of your 2017 Federal and State Oregon Individual Income Tax Returns or one year from the date of this contract, whichever comes sooner. If we elect to terminate our services for nonpayment, or for any other reason provided for in this letter, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our project. You will be obligated to compensate us for all time expended and to reimburse us for all of our out-of-pocket costs through the date of termination.

LIMITATION OF LIABILITY ————————————————————————————By signing this engagement letter, you agree that Wicker Leisy’s liability for damages under this engagement, regardless of the form of action, shall not exceed the total amount paid for services described in this letter. You further agree that Wicker Leisy will not be liable for any lost profits, or for any claim or demand against you by any other party. In no event will Wicker Leisy be liable for incidental or consequential damages, even if we have been advised of the possibility of such damages. No action, regardless of form, arising out of the services under this engagement, may be brought by either party more than one (1) year after the date the cause of action arises.


DISPUTE RESOLUTION —————————————————————————————The terms of this engagement are governed by Oregon law. If a dispute arises out of or relates to the engagement described herein, and if the dispute cannot be settled through negotiations, the parties agree first to try in good faith to settle the dispute by mediation using an agreed upon mediator. The parties shall share the costs of any mediation proceeding equally. If the claim or dispute cannot be settled through mediation, each party hereby consents to the exclusive jurisdiction and venue of the appropriate state or federal court located in Multnomah County, Oregon. Any such action will be heard by a judge sitting without a jury. This means that you are waiving your right to a jury trial.

If the foregoing fairly sets forth your understanding, please sign the enclosed copy of this letter in the space indicated and return it to our office. However, if there are other returns you expect us to prepare, please inform us by contacting our office as soon as possible.

We want to express our appreciation for this opportunity to work with you.

Kind regards,Wicker Leisy, LLC

ACCEPTED AND AGREED —————————————————————————————Both spouses must sign for a jointly filed tax return.

SIGNATURE DATE

PRINTED NAME

SPOUSE’S SIGNATURE DATE

SPOUSE’S PRINTED NAME

Wicker Leisy Tax Organizer—Page 1 of 10

Document ChecklistPlease provide us with the following documents

Income Checklist W2s 1099s:� 1099-R Retirement, pensions, annuities, IRAs, etc

1099-INT Interest income 1099-DIV Dividends and distributions 1099-B Proceeds from broker and barter exchange transactions (Stocks) 1099-MISC Self employment income—see business income/expense worksheet (page 7) 1099-K Payment card and 3rd party network transactions

SSA Social Security Income 1099G Unemployment Recieved K-1 Partnership, S-Corp, Estate, or Trust Income

1099-A & 1099-C Debt Cancellation & Property ForeclosuresRental Income See Rental and Royalty Property Organizer worksheet (page 10)Alimony Received

Did you have more than $10,000 is foreign assets at any time during 2017?

Deductions / Credits 1098-T� (Tuition Statement) 1098 (Mortgage Interest)

Real Estate T�axes / Property T�axes 1098-E Student Loan Interest

1095-A, B, C Health Insurance Marketplace StatementCharitable Donations (Please provide receipts showing date of contribution and dollar value)Alimony Paid

Other Important ItemsSigned Engagement Letter, Completed WorksheetsCopy of last year’s taxes (if new client)SettlementstatementsforanySale,Purchase,orRefinanceofpropertiesPolitical Contribution Credit (summary of contributions)Year End Balances on all Business Accounts and Business Loans (see page 7)

Estimated T�ax Payments:� Date, Payee, Amount

Date Federal State Other

Direct Deposit Information (for refunds only)

Name of Bank:

9 Digit Routing #: Account #:

I have verified that the routing and account numbers listed above are where I want my Federal and State refunds direct deposited.

Customer Signature:


Tax Preparation Worksheet

Personal DataTaxpayer Name Spouse's Name

SSN SSN

DOB DOB

Phone Phone

Email Email

Occupation Occupation

Address

DependentsName Name

SSN SSN

DOB DOB

Daycare Exp Daycare Exp

Daycare Name Daycare Name

Daycare SSN/Fed ID# Daycare SSN/Fed ID#

Daycare Address Daycare Address

(City, State, ZIP) (City, State, ZIP)

Daycare Phone # Daycare Phone #

Name Name

SSN SSN

DOB DOB

Daycare Exp Daycare Exp

Daycare Name Daycare Name

Daycare SSN/Fed ID# Daycare SSN/Fed ID#

Daycare Address Daycare Address

(City, State, ZIP) (City, State, ZIP)

Daycare Phone # Daycare Phone #

*Please provide additional details below or on page 5, if needed


Yes No Personal InformationDid your marital status change during the year?

Did your address change from last year? If yes, please provide new address: __________________________________________________________________________

Can you be claimed as a dependent by another taxpayer?

Did you change any bank accounts, or did routing transit numbers (RTN) and/or bank account number change for existing bank accounts that have been used to direct deposit (or direct debit) funds from (or to) the IRS or other taxing authority during the tax year?Did you receive an Identity Protection PIN (IP PIN) from the IRS or have you been a victim of identity theft? If yes, attach the IRS letter.Did you reside in or operate a business in a Federally declared disaster area? (The Federally declared disaster areas include hurricane and tropical storm victims in Georgia, Florida, Puerto Rico, the Virgin Islands and parts of Texas, Louisiana and South Carolina, as well as wildfire victims in California.)

Yes No Dependent InformationWere there any changes in dependents from the prior year?If yes, please explain: _____________________________________________________Do you have any children under age 19 or a full-time student under age 24 with unearned income in excess of $2,100?

Do you have dependents who must file a tax return?

Did you provide over half the support for any other person(s) other than your dependent children during the year?

Did you pay for child care while you worked, looked for work, or while a full-time student?

Did you pay any expenses related to the adoption of a child during the year?

If you are divorced or separated with child(ren), do you have a divorce decree or other form of separation agreement which establishes custodial responsibilities?Did any dependents receive an Identity Protection PIN (IP PIN) from the IRS or have they been a victim of identity theft? If yes, attach the IRS letter.

Yes No Purchases, Sales and Debt InformationDid you start a new business or purchase rental property during the year?

Did you sell, exchange, or purchase any assets used in your trade or business?

Did you acquire a new or additional interest in a partnership or S corporation?

Did you sell, exchange, or purchase any real estate during the year?

Did you purchase or sell a principal residence during the year?

Did you foreclose or abandon a principal residence or real property during the year?

Did you acquire or dispose of any stock during the year?

QuestionnaireYour answers to these questions help us to ensure that

we are in compliance with tax law and maximizing your deductions.


Did you take out a home equity loan this year?

Did you refinance a principal residence or second home this year?

Did you sell an existing business, rental, or other property this year?

Did you lend money with the understanding of repayment and this year it became totally uncollectable?Did you have any debts canceled or forgiven this year, such as a home mortgage or student loan(s)?

Did you purchase a qualified plug-in electric drive vehicle or qualified fuel cell vehicle this year?

Yes No Income InformationDid you have any foreign income or pay any foreign taxes during the year, directly or indirectly, such as from investment accounts, partnerships or a foreign employer?

Did you receive any income from property sold prior to this year?

Did you receive any unemployment benefits during the year?

Did you receive any disability income during the year?

Did you receive tip income not reported to your employer this year?

Did any of your life insurance policies mature, or did you surrender any policies?

Did you receive any awards, prizes, hobby income, gambling or lottery winnings?

Do you expect a large fluctuation in income, deductions, or withholding next year?

Yes No Retirement InformationAre you an active participant in a pension or retirement plan?

Did you receive any Social Security benefits during the year?

Did you make any withdrawals from an IRA, Roth, myRA, Keogh, SIMPLE, SEP, 401(k), or other qualified retirement plan?

If yes, were any withdrawals due to a Federally declared disaster?

Did you receive any lump-sum payments from a pension, profit sharing or 401(k) plan?

Did you make any contributions to an IRA, Roth, myRA, Keogh, SIMPLE, SEP, 401(k), or other qualified retirement plan?

Yes No Education InformationDid you, your spouse, or your dependents attend a post-secondary school during the year, or plan to attend one in the coming year?Did you have any educational expenses during the year on behalf of yourself, your spouse, or a dependent? If yes, attach any Form(s) 1098-T and receipts for qualified tuition and related expenses.

Did anyone in your family receive a scholarship of any kind during the year?

If yes, were any of the scholarship funds used for expenses other than tuition, such as room and board?

Did you make any withdrawals from an education savings or 529 Plan account?

Did you make any contributions to an education savings or 529 Plan account?

Did you pay any student loan interest this year?

Did you cash any Series EE or I U.S. Savings bonds issued after 1989?


Yes No Health Care InformationDid you have qualifying health care coverage, such as employer-sponsored coverage or government-sponsored coverage (i.e. Medicare/Medicaid) for your family?“Your family” for health care coverage refers to you, your spouse if filing jointly, and anyone you can claim as a dependent. If yes, attach any Form(s) 1095-B and/or 1095-C you received.

Did anyone in your family qualify for an exemption from the health care coverage mandate? Examples of exemptions include (but are not limited to) certain non-citizens, members of a health care sharing ministry, members of Federally-recognized Indian tribes, and exemptions requested from the Marketplace. If yes, attach the Exemption Certificate Number (ECN) or type of exemption.

Did you enroll for lower cost Marketplace Coverage through healthcare.gov under the Affordable Care Act? If yes, attach any Form(s) 1095-A you received.Did you enroll for lower cost Marketplace Coverage through healthcare.gov under the Affordable Care Act and share a policy with anyone who is not included in your family?

Did you make any contributions to a Health savings account (HSA) or Archer MSA?

Did you receive any distributions from a Health savings account (HSA), Archer MSA, or Medicare Advantage MSA this year?

Did you pay long-term care premiums for yourself or your family?

Did you make any contributions to an ABLE (Achieving a Better Life Experience) account? If yes, attach any Form(s) 5498-QA you received.Did you receive any withdrawals from an ABLE (Achieving a Better Life Experience) account? If yes, attach any Form(s) 1099-QA you received.

If you are a business owner, did you pay health insurance premiums for your employees this year?

Did you receive any Health Coverage Tax Credit (HCTC) advance payments? If yes, attach any Form(s) 1099-H you received.

Yes No Itemized Deduction InformationDid you incur a casualty or theft loss or any condemnation awards during the year?

If yes, did the loss occur in a Federally declared disaster area?

Did you pay out-of-pocket medical expenses (Co-pays, prescription drugs, etc.)?

Did you make any cash or non-cash charitable contributions (clothes, furniture, etc.)?If yes, please provide evidence such as a receipt from the donee organization, a canceled check, or record of payment, to substantiate all contributions made.Did you donate a vehicle or boat during the year? If yes, attach Form 1098-C or other written acknowledgment from the donee organization.

Did you pay real estate taxes for your primary home and/or second home?

Did you pay any mortgage interest on an existing home loan? If yes, attach any Form(s) 1098 you received.

Did you incur interest expenses associated with any investment accounts you held?

Did you have an expense account or allowance during the year?

Did you use your car on the job, for other than commuting?

Did you work out of town for part of the year?

Did you have any expenses related to seeking a new job during the year?

Did you make any major purchases during the year (cars, boats, etc.)?

Did you make any out-of-state purchases (by telephone, internet, mail, or in person) for which the seller did not collect state sales or use tax?


Yes No MiscellaneousDid you make gifts of more than $14,000 to any individual?

Did you utilize an area of your home for business purposes?

Did you engage in any bartering transactions?

Did you retire or change jobs this year?

Did you incur moving costs because of a job change?

Did you pay any individual as a household employee during the year?

Did you make energy efficient improvements to your main home this year?

Did you receive a distribution from, or were you a grantor or transferor for a foreign trust?

Did you have a financial interest in or signature authority over a financial account such as a bank account, securities account, or brokerage account, located in a foreign country?Do you have any foreign financial accounts, foreign financial assets, or hold interest in a foreign entity?Did you receive correspondence from the State or the IRS? If yes, explain: ____________________________________________________________Do you have previous years of tax returns that are either un-filed or filed with unpaid balances due?Do you want to designate $3 to the Presidential Election Campaign Fund? If you check yes, it will not change your tax or reduce your refund.

Additional Notes:


Business OrganizerFor use in presenting your business income and expenses for tax return preparation.

Do you use Quickbooks or another accounting software?If yes, please send us a copy of your books or financial statements.

If no, please complete the following 3 pages.

General Information

Business Name:

Principal Business: or Description of Product/Service

Business Address:

Indicate Tax Type: Individual/Proprietorship LLC/Partnership Corporation

Income

Total Business Sales Receipts: Please note the following items are listed on pages 2 & 3:�• Cost of Sales (for goods or products sold)• Vehicle expenses• Business equipment, computers, furniture, etc• Home office expenses

Returns and Allowances:

Other Income:

Interest Income:

Expenses

Advertising Gifts / Promotions

Bank Charges Taxes:

Credit Card Merchant Fees License & Fees

Commissions (1099-MISC) Payroll

Contract Labor (1099-MISC) Property

Dues and Subscriptions Sales

Education Repairs & Maintenance

Health Insurance Utilities:

Business Insurance (non-vehicle) Cell/Telephone

Interest (trade, credit card) Internet

Legal & Professional Other

Office Supplies & Expenses Other Expenses:

Postage

Printing

Rent:

Machinery/Equipment

Office/Building


Cost of SalesInventory on January 1ST

Goods Purchased

Inventory on December 31ST

Other Production Costs:

Labor

Materials

Other

Bank AccountsCash in bank(s)

on January 1ST

Credit card balances on January 1ST

Cash in bank(s) on December 31ST

Credit card balance(s) on December 31ST

Personal funds deposited by owner(s) during the year

Funds withdrawn by owner(s) during the year

Automobile Expenses

Vehicle #1 Vehicle #2

Date vehicle was placed into service

Vehicle year, make and model

TOTAL mileage driven during the year

BUSINESS mileage driven during the year (not commuting)

Check if using MILEAGE DEDUCTION and proceed to Business Assets Acquired

Check if using ACTUAL EXPENSES and complete information below

Operating expenses: gasoline, oil, repairs/maintenance, insurance, registration (not traffic violations) $ $

Business parking & tolls (exclude personal use) $ $

If you OWN the vehicle:

Date purchased

Vehicle cost $ $

Vehicle loan interest paid during the year $ $

If you LEASE the vehicle:

Date lease began

Length of lease

Cost of vehicle if you had purchased it $ $

Down payment on lease $ $

Lease payments for the year $ $


Business Assets Acquired

Did you acquire assets used in your business during the year (computers, furniture, equipment, etc)?

YES (Please provide details below. Do not include the cost of Business Assets in Expenses on previous page)

NO (Please proceed to Home Office)

Description Date Purchased Cost

HomeOffice

Check if you meet the Primary & Exclusive Use test. If you have questions, see below.

Square feet used exclusively for business office/storage:

Total square feet of your home:

Date home acquired

Date home placed in service

Original cost of home $

Cost of subsequent improvements $

Home mortgage interest (100% of Form 1098) $

Real estate taxes paid (100%) $

Insurance (100%) $

Rent (100%) $

Repairs & Maintenance (whole house, 100%) $

Repairs & Maintenance (only to business space) $

Utilities (100%) $

Other expenses at 100% (security, HOA, etc) $

$

$

$

$

HOME OFFICE RULES1. You must meet one of the following three usage requirements:

• Separate structure not attached to the dwelling unit that is used exclusively and regularly for your business activity• If within your living structure, a room/space used as the only office space for your business (no commercial location)• Or, if within your living structure, a room/space used as the only office space for your business (no commercial location) and

you either spend the majority of your time working there (not out of the house) or it is the only suitable place for performing administrative or management activities required by the business. If you sell retail product, it may also include the storage space for the product.

2. If you qualify under any one of the three rules about, the home office must be EXCLUSIVELY used for the business.3. It must be regularly used for the business; you must use the home office in connection with your work on a continuous, ongoing, or

recurring basis. Generally, at least a few hours every week. Occasional or sporadic business usage will not pass the test.


Rental and Royalty Property OrganizerFor use in presenting your rental income and expenses for tax return preparation.

Address:

Do you live in the house that you rented? Yes No How many days rented?

Are you renting: Spare room / Portion of your house / Portion of your apartment? Is this an AirBNB or other short term rental?

The entire house / apartment?

If entire house/apartment is rented skip to Total Rental Income and complete remaining worksheet.

If you are renting a spare room/portion of your house/apartment, please complete the following:

Total Square Footage of Entire Home:

Breakdown of Entire Home

Total square footage of personal use/not available for renter to use: Note: adding the square footage at left should

equal total square footage of entire home.Total square footage rented:

Total square footage of shared space:

T�otal Rental Income:� _________________

T�otal% Used for Rental

(indicate 0% - 100%)Expenses:�Advertising

Cleaning & Maintenance

Insurance

Management Fees

Mortgage Interest

Repairs

Supplies

Real Estate Taxes

Travel

Utilities

Other:

Major Home Improvements (Please explain:� appliances, furnishings, improvements)Date Decription Cost

client engagement letter - portal.clientwhys.com · dear client, this letter is to confirm and...

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