K.

David Johnson, CPA, PC

( 757) 873- 1610

~ Fax (757) 873-5735

dave@kdjcpa.com
708 Tabb Lakes Drive
Yorktown, Virginia 23693

Tax Year 2011 Personal Tax Return Engagement Letter

This letter is to confirm and specify the terms of our engagement with (please print your name)
_________________________________________________ for the year ended December 31, 2011 and to clarify the
nature and extent of the tax services we will provide.
We will prepare the federal and/or state individual income tax returns for calendar year 2011 that you request. We are
not responsible for returns not requested.
We have Tax Organizers available for you to use. Completing those forms will assist us in making sure you are well
served for a reasonable fee. It is your responsibility to provide all the information required for the preparation of
complete and accurate returns. We will not verify the information you give us with any third parties; however, we may
ask for additional clarification from you. Our work in connection with the preparation of the tax returns does not
include any procedures designed to discover defalcations (misappropriated funds) or other irregularities, should any
exist. In order to send you other information that may affect you financially (including e-mails or newsletters about tax
law changes), by signing this letter you agree to allow us to use the tax and personal information you provide us to
assist you via e-mail, newsletter or other formats in the future.
You should retain all the documents, canceled checks, and other data that form the basis of income and deductions.
These may be necessary to prove the accuracy and completeness of the returns to a taxing authority. We will return to
you any original documents you provide to us and we will give you a copy of your completed returns. You must
retain your own documents and copy of returns in case of an audit.
You have the final responsibility for the income tax returns and, therefore, you should review them carefully before
you sign them. If you receive a notice from a taxing authority claiming that you owe additional taxes, please contact
our office before you reply or make any payments. These notices are often incorrect. Because there are strict time
frames in which to respond, please contact our office as soon as you receive any such notice.
If additional taxes are owed, you are responsible for those taxes and any interest charged (as you would have had use
of the monies during the time the interest is charged) regardless of the reason for the change. If the additional taxes
are due based an error on our part, we will correct the return at no additional charge to you and will cover penalties up
to the amount of the preparation fee we charged for the affected return. If the additional taxes are based on
information we did not receive from you, we will prepare any amended returns required at our normal fee and you will
be responsible for all taxes, interest and penalties.
In accordance with federal law, in no case will we disclose your tax return information to any location outside the
United States, to another tax return preparer outside of our firm for purposes of a second opinion, or to any other third
party for any purpose other than to prepare your return without first receiving your consent. Taxing authorities permit
you to authorize us to discuss with them, on a limited basis, aspects of your return for a limited time period. Your
consent to such a discussion is evidenced by checking a box on the returns. Unless you tell us otherwise, we will
check that box authorizing the taxing authorities to discuss your returns with us.
Certain communications involving tax advice are privileged and not subject to disclosure to the IRS. By disclosing the
contents of those communications to anyone, or by turning over information about those communications to the
government, you may be waiving this privilege. To protect this right to privileged communication, please consult with
us or your attorney prior to disclosing any information about our tax advice. Should you decide that it is appropriate
for us to disclose any potentially privileged communication; you agree to provide us with written, advance authority to
make that disclosure.

Tax Year 2011 Personal Tax Engagement Letter

Page 1 of 2

Should we receive any request for the disclosure of privileged information from any third party, including a subpoena
or IRS summons, we will notify you. By signing this engagement letter you agree to allow us to turn over any and all
information required by law to be disclosed.
Your returns may be selected for review by the taxing authorities. In the event of an audit, 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. In the event of a tax
examination, we will be available, upon request, to represent you. However, such additional services are not included
in the fees for the preparation of the tax returns.
Our fees for tax services will be based upon the amount of time required and the complexity of your return(s). All
invoices are due and payable within ten (10) days of receipt. Unpaid invoices will be subject to a late payment charge
of 1.5% per month (18% per year). If for any reason the account is turned over to an attorney for collection, an
additional charge will be added to cover any and all collection costs.
Although this has never been necessary, in the event of any dispute related to our services, our firm and you agree to
discuss the dispute and, if necessary, to promptly use mediation in a good faith effort to resolve. We will share the
mediators fees and expenses equally, but otherwise each of us will bear our own attorneys fees and mediation cost.
Participation in such mediation shall be a condition to either of us initiating litigation. In order to allow time for the
mediation, any applicable statute of limitations shall be tolled for a period not to exceed 120 days from the date either
of us first requests in writing to mediate the dispute. The mediation shall be confidential in all respects, as allowed or
required by law, except our final settlement positions at mediation shall be admissible in litigation solely to determine
the prevailing partys identity for purposes of the award of attorneys fees.
There is the risk that potential errors can occur that can result in damages that may exceed the amount of our fees. In
order to induce us to accept this engagement, you hereby agree that our liability for any negligence, errors or
omissions committed by us will be limited to the amount of our fees. Further, you agree that any suit or counterclaim
based on this engagement must be initiated within twelve (12) months after the performance of our services.
We have the right to withdraw from this engagement, in our discretion, if you dont provide us with any information
we request in a timely manner, refuse to cooperate with our reasonable requests or misrepresent any facts. Our
withdrawal will release us from any obligation to complete your return and will constitute completion of our
engagement. You agree to compensate us for our time and out-of-pocket expenses through the date of our withdrawal.
If the foregoing correctly sets forth your understanding of our tax engagement, please sign this letter in the space
below and return it to our office. If you disagree with any of these terms, please notify us immediately.
By signing and returning the consent form found on our website www.kdjcpa.com, I acknowledge that I have
read and understood the Tax Year 2011 Personal Tax Return Engagement Letter above and I am in full
agreement with its contents.
We want to express our appreciation for this opportunity to work with you.
Very truly yours,

K. David Johnson
K. David Johnson, CPA, PC

Please Note: In order for us to be able to complete you tax returns before the filing deadline, we
MUST have your tax information and this signed Engagement Letter by MARCH 30, 2012. We
can still prepare your returns if we receive your information after this date, but we will need to file
Extensions for your returns.

Tax Year 2011 Personal Tax Engagement Letter

Page 2 of 2