Brennan & Company CPA, PC applies customary industry practices intended to fulfill our professional responsibilities regarding the tax preparation guidelines of reported positions. We define, below, some of our professional responsibilities and the standards that we employ in preparing your tax returns. We find that by more clearly defining our professional service responsibilities, and your responsibilities as a taxpayer, we can prevent any uncertainties in the preparation of your income tax returns. By signing your Engagement Letter, you are also agreeing to the conditions and limitations described herein.
If you need tax planning services or other tax controversy representation during an examination, these additional services would constitute a separate engagement at an additional cost. Our fee is for the tax preparation guidelines – only
Professional Responsibilities and Standards
Responsibility for Accuracy: We exercise professional care to include all pertinent information in your tax returns; however, the client is ultimately responsible for your tax returns. By signing your tax returns, you are verifying and asserting to the IRS that they are true, correct and complete. You should review each tax return carefully before signing it, and bring any questionable items or omissions to our attention.
No Review of Facts: We have not investigated or verified any facts underlying the transactions reported on your tax return. If the actual facts are different from the facts represented to us, or if there are other facts of which we are not aware, the failure to report and include such facts and transactions could materially alter the reported information.
We are not responsible for responding to tax authority notices. After discussing a tax authority notice, you may choose to retain us to respond to a notice. This may require an additional fee.
Level of Assurance. Except as we may have specifically advised you in the course of preparing your returns; we are not aware of any position reported on your tax returns that does not stand a realistic possibility of success if audited/litigated by the IRS.
Oral Advice is Preliminary
In connection with our return preparation services, we may discuss with you our views regarding the tax treatment of certain items. Please note that oral advice should be considered our preliminary understanding and should never be relied upon in the absence of written confirmation.
Our preparation of your returns is not an undertaking on our part to advise you of any changes in law.
Finally, our discussion of your tax return does not in any way represent an attempt to teach or consult with you on tax preparation.
The Code requires that you disclose on your Federal tax return certain “reportable transactions” or “listed transactions.” There are significant financial penalties for failure to disclose these transactions, and these penalties apply even if the transaction does not lead to an understatement of tax.
Certain states require similar disclosures on your state tax returns. Except as disclosed on your tax returns you have not made us aware of any reportable transactions or listed transactions that are required to be reported on your tax returns. We have not undertaken an investigation to evaluate whether there are any transactions that are required to be reported on your returns.
Possibility of Litigation
If the IRS or another tax authority adopts a position contrary to the positions reported on your tax returns, it might be necessary to pursue administrative appeals or tax court. Decisions of whether and how to pursue administrative appeals or litigation may be based on considerations of cost, publicity, and other matters unrelated to the technical merits of a tax position, and these services, when available, are billed separately.
Tax Preparation Guidelines
All clients must provide Brennan and Company CPA, PC a signed tax organizer 2017 Tax Organizer and engagement letter and relevant consent forms. Brennan and Company CPA, PC will not commence work or initiate an extension without these requisite forms. All information must be provided via our secure web portal.