Oct 19 • 💰TAX PRO Lounge
Every Tax Firm Needs an Engagement Letter — Here’s Why.
Let’s be honest too many tax firms skip this step and end up paying for it later 😩.
An Engagement Letter isn’t just paperwork it’s your first line of defense for protecting your firm, your license, and your peace of mind.
💼 Why It’s a Non-Negotiable:
✅ Defines everyone’s role — no confusion about who does what.
✅ Spells out fee splits and payouts — eliminates “I thought I got…” conversations.
✅ Keeps your firm compliant — aligns with IRS standards, due diligence, and Circular 230.
✅ Sets the tone for professionalism and brand consistency.
✅ Shields your business assets — from your software license to your EFIN.
🧾 What Your Engagement Letter Should Cover:
1️⃣ Scope of Services
2️⃣ Compensation & Payment Terms
3️⃣ Confidentiality & Data Security
4️⃣ Compliance Responsibilities
5️⃣ Duration & Termination Policy
6️⃣ Ownership of Clients
7️⃣ Signatures & Effective Dates
If you’re building your team this season whether it’s EROs, partners, or PTIN holders make sure this is part of your onboarding.
Your Engagement Letter is more than a document; it’s the structure that keeps your business running smooth and your brand protected. 💪🏾
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Every Tax Firm Needs an Engagement Letter — Here’s Why.
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