[1] For instructions on how to withdraw the Power of Attorney, refer to the instructions to IRS Form 2848, Power of Attorney and Declaration of Representative. Why CPAs choose AICPA Long Term Disability. The letter should be polite and formal. The first paragraph of the letter should clearly indicate that the client relationship is being terminated, note the effective date of termination and provide the status of services agreed upon in previously issued engagement letters. Doing Business in the Cloud? It is not the place to show anger. From a risk management perspective, CPA firms should avoid providing a partially completed work product to terminated clients or the successor CPA firm. These samples suggest what to say to clients of the predecessor and successor firms: Letter to Clients of the Predecessor Firm Even if you decide to inform the client of your resignation verbally, a follow-up letter evidences the discussion. Why CPAs choose Commercial Property and Liability, Why Firms choose AICPA Group Identity Theft, Why CPA Firms choose AICPA Group Life Insurance, Who is eligible for Group Elite Insurance, Why firms choose Group Personal Excess Liability. When drafting the client termination letter, keep the following in mind: When drafting your client termination letter, consider including the following components. Dixon advises accountants need to be clear in anethical letter about the records they are seeking. It should state the intent to terminate the accountant’s services effective immediately upon receipt of the letter. Keep moving forward throughout every stage of life. We recommend having your successor CPA obtain a Power of Attorney so that they may communicate with the IRS and state taxing authorities. This is to ensure that the financial records stay intact during the termination process. In fact, many clients prefer that most aspects of the CPA firm remain the same as they were under the former owner. This is best done as a part of the regular client service. Partner. The ancient Greek Heraclitus said, “There is nothing permanent except change”. However, not all CPAs are trustworthy or efficient, and if they are not delivering these essential services accurately it may be time for the business or individual to send a letter to change accountants. A successful transition requires a profitable CPA firm and a deal that satisfies the needs of both the seller and the buyer. It is not the place to show anger. Under paragraph .07 of §1.400.200 of the AICPA Code of Professional Conduct, Records Requests, a firm’s work product may be withheld if the work product is incomplete. If the individual income tax returns were filed electronically on the client’s behalf, the letter also could state that the client provided the CPA with a signed copy of IRS Form 8879, which includes a declaration that the taxpayer examined a copy of his or her electronic individual income tax return and accompanying schedules and statements for that tax year and declared that it is true, correct and complete to the … [Optional – If the CPA firm has an outstanding Power of Attorney for the client.]. Michael T. Fant, CPA, P.C. Copying costs will be charged at our regular rates, and are due and payable on a COD basis. If the accountant feels insulted as well as fired, he or she may slow the transition process to a new accountant. While it’s entirely optional, handing out a retirement letter to your client does have its benefits. Here is a sample of a letter to change accountants. What are your expectations of our firm? The letter should be polite and formal. Carry an Umbrella. 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