Engagement Letter

This page shows the standard template we use for HYK Tax engagement letters. Your actual signed Engagement Letter will be customized to your specific scope and delivered through the secure client portal at the start of every engagement. Nothing on this page is a binding agreement until signed by both parties.

01Preamble

This letter, when signed by you and counter-signed by an authorized representative of HYK Tax, PLLC ("HYK Tax"), constitutes the engagement agreement between us for the services described below.

This Engagement Letter incorporates by reference our Terms of Service and Privacy Policy. In the event of conflict, the specific terms in this Engagement Letter take precedence.

02Scope of Services

For the engagement period defined below, HYK Tax will provide the following services to [CLIENT NAME] ("Client"):

Example: Annual Tax Preparation Engagement

• Preparation and electronic filing of Federal Form 1120-S (S-Corporation Income Tax Return) for tax year [YYYY]
• Preparation and electronic filing of [STATE] state corporation tax return for tax year [YYYY]
• Preparation of Schedule K-1 for each shareholder of record
• One round of revisions based on Client review
• Standard tax-return memo summarizing material tax positions taken
• Calculation of next-year quarterly estimated tax payments

Out of scope

Unless added by written amendment, this engagement does not include:

• Bookkeeping or financial statement preparation
• Tax planning or strategic advisory work
• IRS notice response or audit representation
• Personal tax returns of shareholders or owners
• Sales tax, payroll tax, or franchise tax filings

03Fees & Billing

Total flat fee: $[AMOUNT]

Billing schedule:

• 50% retainer due upon execution of this letter
• 50% balance due before filing

Payment methods: ACH bank transfer (preferred, no fee), credit card (3% processing fee), or wire transfer.

Out-of-scope work: Any work outside the scope above will be billed at $250/hour after written approval from Client. We will not perform any out-of-scope work without your express authorization.

04Timeline & Deliverables

05Documents Required

To prepare your return, please provide the following through the secure client portal:

• Prior-year tax return (if not previously filed by HYK Tax)
• Year-end financial statements (P&L and Balance Sheet)
• QuickBooks file or trial balance
• All W-2s, 1099s, and K-1s received
• Bank and credit card statements for the tax year
• Loan documents and depreciation schedules
• Documentation of major asset purchases or dispositions
• Payroll summary reports (if applicable)

A complete checklist will be sent to you through the portal upon engagement.

06Client Responsibilities

You agree to:

• Provide accurate, complete, and timely information
• Respond to our information requests within 5 business days
• Review the prepared return carefully before signing
• Maintain copies of all source documents
• Pay invoices in accordance with the schedule above

07Our Responsibilities

HYK Tax will:

• Perform all work in accordance with AICPA professional standards and IRS Circular 230
• Use due professional care and reasonable judgment in tax positions
• Maintain the confidentiality of all client information
• Communicate clearly and respond within agreed timeframes
• Carry professional liability insurance throughout this engagement

08Limitations of Engagement

This engagement is limited to the preparation of tax returns based on the information you provide. We will not:

• Audit, review, or verify the underlying accuracy of your records
• Detect fraud, defalcation, or errors in your bookkeeping
• Provide assurance services on your financial statements
• Provide legal, investment, or insurance advice

For audit defense or notice response, a separate engagement is required.

09Confidentiality & Records

All client information is held in strict confidence as described in our Privacy Policy and Data Security Policy.

We retain copies of all signed returns, supporting documentation, and engagement files for a minimum of 7 years. Original documents you provide will be returned upon request or at the conclusion of the engagement.

10Term & Termination

This engagement begins upon execution of this letter and ends upon delivery of the filed return and payment of all invoices.

Either party may terminate this engagement with 30 days' written notice. You will be invoiced for all work performed through the termination date.

11Signatures

By signing below, both parties acknowledge they have read, understood, and agreed to the terms of this Engagement Letter.

This is a sample template. Real engagement letters are signed electronically through the secure client portal at portal.hyktax.com using legally binding e-signatures backed by audit trail and identity verification.