SAMPLE PERSONAL TAX RETURN ENGAGEMENT LETTER

Name of Client
Address
City State Zip

Dear (Client):

This letter is to confirm and specify the terms of our engagement with you and to clarify the
nature of the services we will provide.

We will prepare and submit to you for filing the (year) federal and (insert state) state income tax
returns. This engagement only pertains to the (year) tax returns and does not include any
additional returns you may be required to file with other taxing authorities.

We will prepare the tax returns relying on the information and documents that you are providing
to us. It is your responsibility to provide us with timely and complete information and
documentation for the preparation of your returns. We may ask you to clarify certain items that
you furnish to us, but we will not audit or verify any of this information. Therefore, our
engagement cannot be relied upon to disclose errors, embezzlements, fraud or other illegal acts
should they exist. However, we will inform you of any such matters that come to our attention.

Your cooperation and timeliness are essential in order for us to complete this engagement. It may
be necessary to prepare an application for an extension of time to file the (year) return when we
do not receive your tax information 30 days prior to the due date of your return. Applying for an
extension of time to file may extend the time available for a tax authority to undertake an audit of
your return or may extend the statute of limitations. An extension only allows additional time to
file a return, it does not extend the time to pay any taxes that are due.

We will use professional judgment in resolving questions where the tax law is unclear or where
there may be conflicting interpretations of the law and other supportable positions. Unless
otherwise instructed by you, we will resolve such questions in your favor whenever possible.

The law provides various penalties and interest that may be imposed on taxpayers for
underestimated tax liability. If you would like more information on the amount or circumstances
of these penalties, please contact us.

The Internal Revenue Code and regulations impose preparation and disclosure standards with
noncompliance penalties on both the preparer of a tax return and on the taxpayer. These
standards differ. Unless the preparer has a reasonable belief that any tax position in the return
will more-likely-than-not be sustained on its merits, a preparer penalty will be imposed unless
that position has a reasonable basis and is adequately disclosed in the return via disclosure on a
Form 8275. And, while a preparer penalty might be avoided by adequately disclosing the return
position, the taxpayer might not have to disclose the position in order to avoid applicable
taxpayer penalties. If we determine that we would be subject to a preparer penalty by delivering
the return to you, you agree to either adequately disclose that position on the return or change the
position to one that would not subject us to penalty. If you do not choose to change your
position or adequately disclose so as to eliminate, in our sole opinion, our exposure to the
preparer penalty, we, in our sole discretion and at any time, may withdraw from the engagement
without completing or delivering tax returns to you. Such withdrawal will complete our
engagement, and you will be obligated to compensate us for all time expended and to reimburse
us for all out-of-pocket expenses through the date of our withdrawal.

Your returns may be selected for review by the taxing authorities. If your tax return is
selected for examination or audit, you may request that we assist you in responding to such
inquiry. In that event, we would be pleased to discuss providing assistance to you under
the terms of a separate engagement for that specific purpose. Any proposed adjustments by
the examining agent are subject to certain rights of appeal. In the event of such
government tax examination, we will be available upon request to represent you and will
render additional invoices for the time and expenses incurred.

In addition, you may request that we perform additional services not contemplated by this
engagement letter. Engagements for additional services may necessitate that we amend this
letter or issue a separate engagement letter to reflect the obligations of both parties. In the
absence of any other communications from you requesting such additional services, our
services will be limited to and governed by the terms of this engagement letter. Although
we are available to provide you with tax planning advice, we are not obligated to do so
unless you specifically request it

In the event that we receive a subpoena or summons requesting that we produce documents
from this engagement or testify about the engagement, we will notify you prior to
responding to it. You may, within the time permitted for our firm to respond to any
request, initiate such legal action as you deem appropriate to protect information from
discovery. If you take no action within the time permitted for us to respond or if your
action does not result in a judicial order protecting us from supplying requested
information, we may construe that inaction or failure as consent to comply with the
request.

Our fees for this engagement will be based upon the time required to complete your returns
billed at our standard hourly rate. Our fees will be billed monthly and are payable upon receipt.
Invoices unpaid 30 days past the billing date may be subject to an interest charge. We reserve the
right to suspend our services or to withdraw from this engagement in the event our invoices are
not paid. If our services are terminated you will be obligated to reimburse us for all costs through
the date of termination.

Our maximum liability to you arising for any reason relating to services rendered under
this letter shall be limited to the amount of fees you paid for these services. In the event of
a claim by a third party relating to services under this letter, you will indemnify us from all
such claims, liabilities, costs and expenses, except to the extent determined to have resulted
from our intentional or deliberate misconduct
If any dispute arises (between/among) the parties hereto, the parties agree first to try in good
faith to settle the dispute through non-binding mediation. The costs of mediation shall be shared
equally by the parties.

The parties agree that, if any dispute cannot be settled through mediation, the dispute may then
be brought before a court of competent jurisdiction, but the matter will ultimately be decided by
the court, sitting without a jury. The parties recognize they have knowingly and
voluntarily agreed to waive all rights to have any such dispute determined by a
jury, but otherwise retain all rights afforded under the applicable civil justice system.
You should retain all documents and data that form the basis of income and deductions as these
may be needed to prove accuracy and completeness of your returns. You have the final
responsibility for reviewing, signing and sending in your return to the applicable taxing
authorities. In the event information is requested by any of the parties signing this return, that
information will be furnished without obtaining the additional consent of any other party.

This Agreement, and the rights and obligations of the Parties hereunder, shall be governed by
and construed in accordance with the laws (enter state or other jurisdiction) (without giving
effect to its provisions on conflict of laws).

This Agreement is fully and voluntarily entered into by the Parties. Each Party states that he,
she, or it has read this Agreement, has obtained advice of counsel if he, she, or it so desired,
understands all of this Agreement, and executes this Agreement voluntarily and of his, her, or its
own free will and accord with full knowledge of the legal significance and consequences of this
Agreement.

To confirm that you agree with the services and terms of this engagement, please sign where
indicated at the bottom of this letter and return one signed copy to us. If we do not receive the
executed copy of this agreement from you, receipt of your tax return data (and/or organizers for
Individuals) will acknowledge your acceptance of the terms of this agreement. Should you have
any questions regarding these requirements or provisions, please feel free to contact us.

Sincerely

________________
Signed on behalf of
(Firm Name)

ACCEPTED AND AGREED TO BY

By: __________________ Date:______________

Please be further advised that neither Markel nor All Risks, Ltd can be responsible for
material changes to this document or information supplied in the blanks currently provided.
If you would like to have a proposed finished product reviewed in advance of utilization of
this document please contact our Accountants' Professional Liability Advice "Hotline" at 866-
306-3607.