Engagement letter
The Engagement letter is a letter that clearly states the conditions of the agreement under which you commit to prepare your client’s tax returns. You must enter the name of the accounting firm or representative that you would like to see at the bottom of the engagement letter. If nothing is entered, no name will appear.
You can choose the engagement period, either for the current taxation year or for the current and subsequent taxation years.
You may print this letter for your clients or new clients only, or you can choose not to print it.
By default, the do not print check box is selected. This option applies to all your clients, but it may be modified for a specific client in the Client Letter Worksheet (Jump Code: LW).
Please enter the interest rate as well as the term that you want to add to the end of the engagement letter.
Client letter information
1 – Print applicable client letter
The regular letter must be selected
at all times in order to generate the appropriate letter for a deceased
person or for an electronically transmitted return (EFILE). In addition
to the list of forms to sign, the regular
letter contains different paragraphs explaining the content of the client’s
return. By default, the program selects the regular
letter with the return (EFILE or the deceased person, if applicable)
check box. This choice applies to all clients, but may be modified for
a specific client in the Client Letter
Worksheet (Jump Code: LW).
Please select the letter type you want to use for all your clients.
The available types of letters are:
- regular letter with the return (“Paper – Papier,” “EFILE – TED” and “Deceased – Décédé” templates);
- simplified letter (forms to be signed with fixed printing);
- abbreviated letter (forms to be signed with variable printing);
- abbreviated letter for the taxpayer and the spouse.
2 – Indicate the printing type for list of instalments
By default, the program selects the Schedule within the letter setting in order for the list of instalments to be integrated into the client letter.
However, you can opt to have the instalment schedule printed separately. A T1 table and a TP1 table will then be printed on two separate pages. You can also choose to have the program make no reference to the list of instalments in the client letter. The choice indicated applies to all clients, but may be modified for a specific client in the Client Letter Worksheet (Jump Code: LW).
Furthermore, the print the March instalment for the second subsequent year check box will allow you to request the instalment amount for March of next year to be printed at the bottom of the table in the appropriate letter.
3 – When referring to your firm, you prefer
You may choose the first person singular (I) or first person plural (we) to refer to your office. By default, the program will select the plural (we) check box. Note that this choice will also apply for the engagement letter.
4 – Salutation to be used for the client letter
The salutation chosen applies to the different letter templates. By default, the program selects the Mr./Mrs. check box ("Mr.” or "Mrs." followed by the taxpayer’s surname). This salutation form is used for professional correspondence.
You may also choose the friendly form by selecting the Dear check box ("Dear" followed by the taxpayer’s first name).
The choice applies to all clients. If, for a specific client, you want to use a different form, modify the salutation in the "Filing information" section of the ID form.
5 – Additional printing options
- Firm logo in the heading:
The firm logo in the heading is available for the different types of letters. However, if you use letterhead paper, you must not select this check box. By default, the program will not print the firm logo in the letter’s heading. - Include preparer's address in heading:
The firm’s address is available for the different types of letters. However, if you use letterhead paper, you must not select this check box. By default, the program will not print the firm’s address in the letter’s heading. -
Include the paragraph relating to the RRSP/PRPP/HBP/LLP contribution limit: You can choose to print the paragraph referring to the regular RRSP/PRPP contribution amount to be made for the following taxation year as well as the refund amount to an HBP and/or an LLP. The program will select this check box by default. If you do not want this paragraph to print, clear this check box.
Note that, by default, the RRSP/PRPP amount excludes the $2,000 excess contribution amount. To modify this calculation, select the check box in the "Options – Return" section of the preparer profile used. The choice indicated applies to all clients and cannot be modified for one client only.
6 – Regular letter options
- MR-69 in a separate paragraph:
You can choose for a disclaimer to appear in a separate paragraph. You must, however, be sure to have indicated, in the "Options – Authorization forms" section from the Tax Preparer’s Profile, if you want this form to be printed for new clients only. By default, the program will mention that your client must sign Form MR-69. - Elections Canada, question:
This option allows the user to add a paragraph indicating that the question authorizing the CRA to provide information to Elections Canada has been answered by you or is to be answered by the taxpayer. By default, no check box is selected on this line. - Confirmation of government departments:
GST/HST: By default, the program selects this check box to indicate that you want to include a disclaimer to confirm eligibility for the GST/HST credit.
CCB/Child assistance: By default, the program selects this check box to indicate that you want to include a disclaimer to confirm the eligibility for the Canada Child Benefit and/or the Refundable tax credit for child assistance.
Instalment payments: This option is used to inform the taxpayer that he/she will receive from the different government departments the confirmation of the instalment amounts that he/she has to pay (as applicable). This option applies to the regular letter only. By default, the program selects this check box to indicate that this paragraph must be printed. - Include filing date paragraph:
This option must be used when you want to include, in the regular letter, a paragraph providing specific filing dates for a tax return, depending on whether or not the taxfiler has a business. -
Filing date:
This section allows you to modify various filing or balance-due dates in cases where these dates fall on a weekend day. For example, if this year, April 30 falls on a Saturday, the CRA will consider that a return filed on Monday May 2 was filed on time. Any change to the dates in this section will be reflected in the client letter and in the calculation of Form Interest and Late-Filing Penalty (Jump Code: INTEREST). - Include the paragraph relating to the interest and penalty:
This option allows you to include, in the regular letter, the EFILE letter or the simplified letter, a paragraph specifying the estimated amount of interest and the late-filing penalty applicable to the return. - T183/TP-1000 - Inform the client that the form must
be signed before the transmission (EFILE):
A paragraph in the EFILE letter allows the user to indicate to the taxpayer that the preparer will only electronically file the tax return with the appropriate tax authorities upon receipt of the duly completed Form T183/TP-1000.
This choice applies to all clients and can be changed for a specific client in the Client Letter Worksheet (Jump Code: LW). - Address to send returns
This option allows you to add a paragraph indicating the address of the tax centre where the income tax returns must be sent for all your clients. You can modify this choice, for a specific client, in the “Client letter information from preparer profile” section of the Client Letter Worksheet (Jump Code: LW). - Opening paragraph
This option allows you to add a customized paragraph in the regular letter for all clients. You can modify this paragraph, for a specific client, in the “Opening paragraph” section of the Client Letter Worksheet (Jump Code: LW). - Closing paragraph
This option allows you to add a customized paragraph in the regular letter for all clients. You can modify this paragraph, for a specific client, in the “Closing paragraph” section of the Client Letter Worksheet (Jump Code: LW).
7 – Additional letter(s) to print
This option allows you to make the additional letters applicable for printing purposes. You need to select the box(es) corresponding to the additional letters that you want to use and then define the “If applicable” value for these additional letters in your print template.
8 – Additional paragraphs
This option allows you to select and identify the additional paragraphs that you added in your customized letters for all clients. You can modify your selection for a specific client in the “Additional paragraphs” section of the Client Letter Worksheet (Jump Code: LW).