The number 706 refers to Form 706 which is used to file the United States Estate (and Generation-Skipping Transfer) Tax Return. Generally, a contract to employ a certified public accountant need not be in writing. However, such contracts often call for services of a highly complex and technical nature, and hence they should be explicit in their terms, and they should be in writing. In particular, a written employment contract is necessary in order to avoid misunderstanding with the employer regarding the amount of the accountant's fee or compensation and the nature of its computation.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Kansas Estate and Inheritance Tax Return Engagement Letter — 706 The Kansas Estate and Inheritance Tax Return Engagement Letter — 706 is a legal document that outlines the terms, agreement, and responsibilities between an executor or personal representative of an estate and a certified public accountant (CPA) when it comes to the preparation and filing of the Kansas Estate and Inheritance Tax Return, also known as Form 706. The engagement letter serves as a written contract between the executor and the CPA, ensuring a clear understanding of their roles and responsibilities throughout the estate administration process. It establishes the necessary guidelines and expectations, helping to streamline the tax preparation process and avoid any confusion or misunderstandings. The Kansas Estate and Inheritance Tax Return Engagement Letter — 706 typically includes the following key elements: 1. Parties Involved: The engagement letter identifies the executor or personal representative of the estate and the certified public accountant who will be responsible for the tax preparation and filing. 2. Objective: It clearly states the purpose of the engagement, which is to accurately prepare and file the Kansas Estate and Inheritance Tax Return (Form 706) on behalf of the estate. 3. Scope of Services: The engagement letter defines the specific services to be provided by the CPA. This may include gathering relevant financial information, completing the necessary tax calculations, and filing the tax return with the Kansas Department of Revenue. 4. Timeframe: The letter outlines the timeframe within which the CPA expects to complete the necessary tax preparation and filing tasks. This ensures that the executor is aware of the deadlines and can provide the required documentation promptly. 5. Limitations: The engagement letter may outline any limitations or exclusions to the services provided by the CPA. For example, it might specify that the CPA is not responsible for appraising assets or providing legal advice. 6. Fees and Payment Terms: The letter details the fee structure and payment terms agreed upon between the executor and the CPA. This section may also include information about additional costs such as postage, photocopying, or professional consultations. 7. Confidentiality: It emphasizes the importance of maintaining the confidentiality of the estate's financial information and clarifies that the CPA will not disclose any sensitive details to external parties without proper authorization. Types of Kansas Estate and Inheritance Tax Return Engagement Letters: 1. Standard Engagement Letter — 706: This is a general engagement letter used for most estates and outlines the standard services provided by the CPA for preparing and filing the Kansas Estate and Inheritance Tax Return (Form 706). 2. Complex Estate Engagement Letter — 706: This type of engagement letter is used for estates with complex tax situations, such as those involving substantial assets, multiple beneficiaries, or legal complexities. It outlines additional services and considerations required due to the complexity of the estate. 3. Amended Engagement Letter — 706: This engagement letter is used when the executor needs to amend or make changes to a previously filed Kansas Estate and Inheritance Tax Return. It outlines the services required to file the amended return accurately. In conclusion, the Kansas Estate and Inheritance Tax Return Engagement Letter — 706 is a crucial document that formalizes the agreement between an executor and a CPA. It ensures clarity, sets expectations, and outlines the responsibilities for both parties involved in the accurate preparation and filing of the Kansas Estate and Inheritance Tax Return.
