I have been warned about scope creep and the need for engagements letters to spell out ever more details.
So, I should be using an engagement letter for tax returns which we do utilize for businesses and individuals.
I should then have a new separate letter for any IRS or state correspondence. One letter for each agency and response. Since it is taking the IRS months to respond and the computers spit out letters regardless of your responses, this is more difficult.
Then, there should be another engagement letter if there is an audit, I would expect a lengthier one for the client to not having to be involved.
For appeals, there should be yet another engagement letter.
Finally, there should be a disengagement letter for when we get sick and tired of dealing with the engagement letters.
I completely understand that this is very good advice, and I should utilize engagement letters at every new service to be provided to clients. But we have a more relaxed relationship with our clients. I think this may jeopardize that relationship with all these letters.
I should probably take this issue to my Board of Advisors for their opinion. But I know they are in the best interests of all parties.