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.
New Jersey Estate and Inheritance Tax Return Engagement Letter — Form 706: A Comprehensive Guide for Executors and Beneficiaries When it comes to handling estate and inheritance taxes in New Jersey, it is crucial for executors and beneficiaries to familiarize themselves with the process of filing Form 706, also known as the Estate and Inheritance Tax Return. To ensure a smooth and accurate tax reporting process, it is highly recommended engaging the services of a qualified tax professional or attorney. This engagement is formalized through the New Jersey Estate and Inheritance Tax Return Engagement Letter — 706. What is the New Jersey Estate and Inheritance Tax Return Engagement Letter — 706? The New Jersey Estate and Inheritance Tax Return Engagement Letter — 706 is a legally binding document that outlines the professional relationship between an executor (or estate administrator) and a tax professional or attorney. This letter confirms that the executor has engaged the services of the tax professional to handle the filing of Form 706 and all related estate and inheritance tax matters. Key Components of the Engagement Letter — 706: 1. Parties Involved: The engagement letter clearly identifies the executor and the tax professional or attorney who will be handling the estate and inheritance tax filing. 2. Scope of Services: It outlines the specific services that the tax professional will provide, including preparing and filing Form 706, calculating the estate tax liability, advising on tax-saving strategies, communicating with the New Jersey Division of Taxation, and managing any related tax audits or disputes. 3. Fees and Payment Terms: The engagement letter specifies the fees for the services rendered, whether it is a fixed amount or an hourly rate. It also outlines the payment terms and any additional charges that may apply, such as postage or filing fees. 4. Confidentiality: The letter reinforces the importance of confidentiality in handling sensitive tax and financial information related to the estate and inheritance tax return. 5. Termination Clause: This section outlines the conditions under which either party can terminate the engagement, such as non-payment of fees or failure to provide necessary documentation. Different Types of New Jersey Estate and Inheritance Tax Return Engagement Letters — 706— - Standard Engagement Letter: This type of engagement letter covers the general filing and reporting requirements for estates subject to New Jersey estate and inheritance taxes. — Complex or High-Value Estate Engagement Letter: When dealing with complex estates or high-value assets, this engagement letter may include additional services like estate planning, tax planning strategies, or assistance with estate valuation and asset appraisals. — Amendment Engagement Letter: In cases where an estate tax return requires amendments or modifications, an amendment engagement letter may be used to outline the specific services needed to rectify the errors or omissions in the initial filing. Conclusion: The New Jersey Estate and Inheritance Tax Return Engagement Letter — 706 establishes a professional relationship between an executor and their chosen tax professional or attorney. Drafted to protect the interests of all involved parties, this engagement letter ensures the accurate and timely filing of Form 706 while taking advantage of any applicable tax-saving strategies. Executors and beneficiaries should seek competent advice and engage qualified professionals to streamline the process and fulfill all legal obligations related to estate and inheritance taxes in New Jersey.
