Engagement Letter Terms & Conditions. Please contact us at eb@elizabethbystromcpa.com if you have any questions.
In cases of unclear tax law, we will use professional judgment to resolve questions in your favor when substantial authority supports the position. If multiple interpretations exist, we will explain the available options. We will follow your selected position if it aligns with authoritative tax guidance, such as the Internal Revenue Code, regulations, rulings, and relevant case law.
If tax authorities later dispute your position, additional tax, penalties, or interest may apply. You agree to release us from liability related to such outcomes, including professional fees.
If your tax returns are filed jointly, both spouses are considered clients under this Agreement. Accordingly, neither spouse should expect privacy from the other regarding services rendered. We may share documents and information related to the tax return with either spouse, without separate consent.
If you are married, and subsequently pursue filing for divorce, both spouses will both be required to sign a conflict-of-interest waiver, as you may have conflicting interests with your spouse.
We will not be able to advise either spouse independently of the other unless one of you is released as a client from our firm.
Determination of filing status while during the divorce process can be complicated. Electing a filing status of married filing jointly establishes joint liability for taxes owed and requires that certain tax-related decisions be made prior to the preparation of income tax returns. Consequently, we may require a letter of instruction from both of your divorce attorneys [or, if the spouse(s) is/are unrepresented, we will require a letter of instruction from the unrepresented spouse(s)] identifying items needed to prepare your tax return and your agreement to same before the tax returns can be prepared.
In the event that you elect to file separate tax returns, you will both be required to sign new engagement letters prior to the preparation of your returns.
We do not respond to direct inquiries from banks, mortgage brokers, or other third parties regarding your tax return information. We also do not release copies of tax returns or provide confirmations to any third party unless the request is initiated and authorized by you.
If you wish for us to communicate with a third party, you must submit a written authorization that clearly identifies the recipient, the information to be shared, and your signature. Upon receipt of this authorization, we may, at our discretion, provide the requested materials in accordance with firm policy and applicable regulations
Our advice is based on current tax reference materials, facts, assumptions, and representations, all of which may change over time. Reference sources include the Internal Revenue Code, Treasury regulations, rulings, procedures, court decisions, and related guidance.
We do not update our advice after the engagement ends for later legal, administrative, or judicial developments. When providing written advice on federal tax matters, we comply with the standards of Circular 230 §10.37.
If you intend to take a tax position based on advice from another advisor, you must obtain their written statement confirming the position meets the applicable standard—such as “realistic possibility,” “substantial authority,” or “more likely than not.”
In preparing your return, we are required under Circular 230 §10.22(b) and AICPA SSTS No. 1 to exercise due diligence and maintain a good faith belief that the position has, at minimum, a realistic possibility of being sustained if challenged. Additional research and related charges may apply.
The IRS and many states impose penalties for substantial understatement of tax. To avoid these penalties, a position must be supported by substantial authority or adequately disclosed using Form 8275 or 8275-R, as appropriate.
You agree to inform us if you wish to disclose a position on your return. If you request assistance in determining whether substantial authority exists and we agree to conduct research, this will be confirmed in a separate agreement. It is your responsibility to reach out if further guidance is needed.
If we determine that disclosure is required, you consent to attach the appropriate form after we consult with you. Should the position be challenged, you acknowledge and accept responsibility for any resulting tax, penalties, interest, or related professional fees.
We are prohibited from signing a tax return unless we reasonably believe there is substantial authority for the position or a reasonable basis is disclosed in a separate attachment, per Circular 230 and IRC §6694.
The IRS imposes significant penalties on both taxpayers and preparers for failure to disclose:
You agree to notify us promptly if you are involved in any reportable transactions or tax shelters. Unless the transaction is more likely than not to be sustained, disclosure is required. If you do not consent to required disclosure, we may be unable to prepare your return.
You also agree to hold us harmless from any resulting liability—such as additional tax, penalties, interest, or professional fees—arising from failure to notify us in writing.
Our engagement does not include investigation for errors, fraud, or illegal acts. While we may inform you of any issues that come to our attention, we are not responsible for identifying such matters.
We are also not liable for the actions, omissions, or financial condition of any third-party professionals you engage. Our advice relies on the accuracy and completeness of the information you provide.
Our signature on your tax return confirms preparation in accordance with applicable laws, based solely on the data you furnish.
Information obtained during this engagement is subject to strict confidentiality. We will not disclose your information except as permitted or required by law, or with your express written consent. This confidentiality obligation extends beyond the termination of our professional relationship.
You are responsible for complying with any industry-specific privacy or disclosure requirements. If your obligations exceed the protections in this agreement, it is your responsibility to ensure compliance. You agree to indemnify and hold us harmless for any claims resulting from failure to do so.
All proprietary tools, documents, templates, and intellectual property used or developed during this engagement—including reports, forms, and this agreement—remain our property.
We may share your confidential information with trusted third-party service providers as needed to deliver our services. This may include team members (e.g., consultants, administrative assistants), online backup systems, web and newsletter support providers, credit card processors, or other internet-based software platforms.
We work only with reputable companies that demonstrate a commitment to data security. Third-party providers are required to safeguard your information and use it solely in connection with the services they perform for us.
Please see our Privacy Policy for additional information.
We may communicate with you or others via electronic methods in connection with this engagement. Because such communications can be intercepted, misdirected, or accessed by unintended recipients, we cannot guarantee that electronic transmissions will be received solely by the intended party.
Accordingly, we disclaim all liability for any interception, unauthorized access, or disclosure of electronic communications. You acknowledge and accept that we are not responsible for any resulting damages—including, without limitation, lost profits, data disclosure, or incidental or consequential losses—arising from the use of electronic methods.
All original documents you provide to us in connection with this engagement remain your property. We reserve the right to make and retain a reasonable number of copies for our records.
Additionally, we reserve the right to charge a fee for the handling, organization, or return of physical documents, especially where such handling requires significant administrative time or secure delivery methods
To enhance our service delivery, we utilize secure software platforms that provide a collaborative, virtual workspace. These tools support real-time interaction across locations and time zones, enabling the exchange of data, engagement details, and deliverables in a protected online environment.
Access to these platforms may require you to enter into a client portal agreement, subject to its terms and conditions. You acknowledge that we are not responsible for the performance or activities of any third-party software we use for portal access and agree to indemnify and hold us harmless from any claims related to their use.
We are not the custodian of your data. You are solely responsible for maintaining your own records, including copies of any materials we may provide. The client portal is intended solely as a file transfer mechanism and not a long-term storage solution. Information may be removed at any time without notice.
If you choose to transmit or request delivery of confidential information by means other than a secure portal, you do so at your own risk. You agree that we bear no liability for any resulting damages, including but not limited to:
During this engagement, we may use third-party applications—including internet-based providers—to deliver certain services . We are not liable for data retention, access, or any other aspect of the third party’s performance, even if we subsidize their cost.
You are responsible for deciding whether to maintain hard copies of your original documents or rely solely on digital versions. We retain records for at least one (1) year following and engagement's completion; however, these are not a substitute for your originals, and unforeseen events may limit their availability.
We will return any original paper documents you provide once our work is complete. Our firm does not retain physical documents as a matter of policy, although we may keep select copies essential to our records. You are responsible for securing your original documentation for future use.
We will rely on the accuracy and completeness of the information you provide.
You are responsible for maintaining all records required to support the accuracy and completeness of your tax return, including documentation for income, deductions, credits, and other reported items.
You confirm that such documentation exists and can be produced if requested by tax authorities. You agree to hold us harmless from any liability—such as additional tax, penalties, interest, or professional fees—resulting from disallowed items due to insufficient documentation
Our work is not designed to detect errors, fraud, or illegal acts. However, if we identify any material issues in the course of our work, we will inform you—unless they are clearly inconsequential. We may also request clarification regarding the information you submit, however we are not obligated to do so.
U.S. filing obligations related to foreign financial assets
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