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Engagement Letters For Tax Practitioners are essential documents in U.S. tax practice that formally establish the professional relationship between tax practitioners and their clients. These letters are required by professional standards and best practices, particularly in compliance with IRS Circular 230 and state regulations. They are used when initiating new tax service relationships or updating existing ones, typically covering tax return preparation, planning services, or specialized tax consulting. The document defines service scope, sets expectations, outlines responsibilities, addresses confidentiality requirements, and establishes fee arrangements. It serves as a risk management tool while ensuring compliance with professional standards and regulatory requirements in the United States tax practice environment.
