Sample “Representation Letter” for Tax Services Clients:
Michael J. Perullo, CPA
2828 Peachtree Road, NW – No. 1202
Atlanta, Georgia 30305-5113
March 1, 2006
Mr. Henry David Thoreau
Concord, Massachusetts 01742
2005 Income Tax Returns
purpose of this correspondence is to inform you that I appreciate the
opportunity to work with you and advise you regarding your income tax.
To ensure a complete understanding between us, I am setting forth
pertinent information about the nature and limitations of the services
which I propose to render for you.
requested by you, I will prepare your individual income tax returns from
information which you will furnish to me. Any other returns that may be
required will be prepared by you or another preparer. You are
representing to me that the information you will supply me is accurate
and complete to the best of your knowledge. I will make no audit or
other verification of the data you submit, although I may need to ask
you for clarification of some of the information. When necessary, I
will furnish you with questionnaires and/or worksheets to guide you in
gathering information for me. Your use of such forms will assist me in
keeping my fee to a minimum.
work in connection with the preparation of your income tax returns does
not include any procedures designed to discover defalcations or other
irregularities, should any exist. I will render such accounting and
bookkeeping assistance as I find necessary for the preparation of income
will use judgment in resolving questions where the tax law is unclear,
or where there may be conflicts between the taxing authorities'
interpretations of the law and other supportable positions. Unless
otherwise instructed by you, I will resolve such questions in your favor
law provides various penalties that may be imposed when taxpayers
understate their tax liability. If you would like information on the
amount or circumstances of these penalties, please contact me.
have the final responsibility for the income tax returns and, therefore,
you should review them carefully before you sign and file them.
returns may be selected for review by the taxing authorities. Any
proposed adjustments by examining agents are subject to certain rights
of appeal. In the event of such government tax examination, I will be
available upon request to represent you and render additional invoices
for time and expenses incurred.
any time, if requested, I will consult with you regarding the income tax
consequences of proposed or completed transactions, compile income tax
projections and engage in research in conjunction with such matters.
Since the annual income tax returns that I have prepared for you are
based upon the current tax law as I understand it to be, I consider
myself responsible for future changes in the law which effect the
returns that I have already prepared. Those changes may require the
amendment of prior-filed returns. I will render additional invoices for
all such services at my customary billing rates.
fee for these services will be based upon the amount of time required at
my standard billing rates, plus out-of-pocket expenses. All invoices
are due and payable upon presentation.
the foregoing fairly sets forth your understanding, please sign the
enclosed copy of this letter in the space indicated and return it to my
Again, I want to express my appreciation for this opportunity to work
Michael J. Perullo, CPA
Accepted by: ____________________________________