HomeMy WebLinkAboutTVHS19-001 McMahan and AssociatesMcMahan and Associates, l.l.c.
Certified Public Accountants and Consultants
Web Site: www.mcmahancpa.com
Chapel Square, Bldg C Main Office: (970) 845-8800
245 Chapel Place, Suite 300 Facsimile: (970) 845-8108
P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com
Member: American Institute of Certified Public Accountants
Paul J. Backes, CPA, CGMA Avon: (970) 845-8800
Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996
Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481
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December 13, 2018
The Valley Home Store, LLC
c/o Eagle County
P.O. Box 850
Eagle, Colorado 81631-0850
Attention: Jill Klosterman, Finance Director
Dear Client:
This letter is to confirm and specify the terms of our engagement with The Valley Home Store, LLC (the
“Company”) for the year ending December 31, 2018 and to clarify the nature and limitations of the tax
services we will provide.
Our engagement is limited to performing the following services:
1. Prepare the Company’s federal and Colorado income tax returns, with supporting schedules, for
the year ended December 31, 2018.
2. Prepare any bookkeeping entries that we find necessary in connection with preparation of the
income tax returns.
This engagement letter does not cover the preparation of any financial statements, which, if we are to
provide, will be covered under a separate engagement letter.
You are responsible for the safeguarding of assets, the proper recording of transactions in the books of
accounts, the substantial accuracy of the financial records, and the full and accurate disclosure of all
relevant facts affecting the returns to us. You also have final responsibility for the tax return and,
therefore, the appropriate officials should review the return carefully before an authorized officer signs
and files it.
You are responsible for making all management decisions and performing all management functions; for
designating an individual with suitable skill, knowledge, or experience to oversee the bookkeeping and tax
services we provide; and for evaluating the adequacy and results of the services performed and
accepting responsibility for such services.
We may provide you with a letter, questionnaire, or other document requesting specific information. We
understand that your staff will prepare all reconciliations or work papers we request, and will timely locate
and provide any documents we request in connection with these tax services. Providing the requested
information will assist us in making sure you are well served for a reasonable fee. You represent that the
information you are supplying to us is accurate and complete to the best of your knowledge and that you
have disclosed to us all relevant facts affecting the returns. We will not verify the information you give us;
however, we may ask for additional clarification of some information.
If, during our work, we discover information that affects prior-year tax returns, we will make you aware of
the facts. However, we cannot be responsible for identifying all items that may affect prior-year returns. If
you become aware of such information during the year, please contact us to discuss the best resolution of
the issue. We will be happy to prepare appropriate amended returns as a separate engagement.
DocuSign Envelope ID: 34738570-7A10-42F5-9E36-198DEEB1EB80
The Valley Home Store, LLC
c/o Eagle County
December 13, 2018
Page 2
Our work in connection with the preparation of the tax returns does not include any procedures designed
to discover defalcations or other irregularities, should any exist. The returns will be prepared solely from
information provided to us without verification by us.
In accordance with federal law, in no case will we disclose your tax return information to any location
outside the United States, to another tax return preparer outside of our firm for purposes of a second
opinion, or to any other third party for any purpose other than to prepare your return without first receiving
your consent.
The Internal Revenue Code and regulations impose preparation and disclosure standards with non-
compliance penalties on both the preparer of a tax return and on the taxpayer. To avoid exposure to
these penalties, it may be necessary in some cases to make certain disclosures to you and/or in the tax
return concerning positions taken on the return that do not meet these standards. Accordingly, we will
discuss tax positions that may increase the risk of exposure to penalties and any recommended
disclosures with you before completing the preparation of the return. If we concluded that we are
obligated to disclose a position and you refuse to permit the disclosure, we reserve the right to withdraw
from the engagement and you agree to compensate us for our services to the date of withdrawal. Our
engagement with you will terminate upon our withdrawal.
The IRS permits you to authorize us to discuss, on a limited basis, aspects of your return for one year
after the return's due date. Your consent to such a discussion is evidenced by checking a box on the
return. Unless you tell us otherwise, we will check that box authorizing the IRS to discuss your return with
us.
It is our policy to keep records related to this engagement for seven years. However, we do not keep any
of your original records, so we will return those to you upon the completion of the engagement. When
records are returned to you, it is your responsibility to retain and protect the records for possible future
use, including potential examination by governmental or regulatory agencies. By signing this
engagement letter, you acknowledge and agree that upon the expiration of the seven-year period, we are
free to destroy our records related to this engagement.
We subscribe to a program of peer review for maintenance of quality control in our office. As part of this
program, your return may be selected for review by other CPAs under strict rules of confidentiality. Your
acceptance below constitutes your agreement for disclosure under the program.
Certain communications involving tax advice are privileged and not subject to disclosure to the IRS. By
disclosing the contents of those communications to anyone, or by turning over information about those
communications to the government, you, your employees, or agents may be waiving this privilege. To
protect this right to privileged communication, please consult with us or your attorney prior to disclosing
any information about our tax advice. Should you decide that it is appropriate for us to disclose any
potentially privileged communication, you agree to provide us with written, advance authority to make that
disclosure.
Should we receive any request for the disclosure of privileged information from any third party, including a
subpoena or IRS summons, we will notify you. In the event you direct us not to make the disclosure, you
agree to hold us harmless from any expenses incurred in defending the privilege, including, by way of
illustration only, our attorney's fees, court costs, outside adviser's costs, or penalties or fines imposed as
a result of your asserting the privilege or your direction to us to assert the privilege.
The returns may be selected for review by the taxing authorities. In the event of an audit, you may be
requested to produce documents, records, or other evidence to substantiate the items of income and
deduction shown on a tax return. Any proposed adjustments by the examining agent are subject to
certain rights of appeal. In the event of a tax examination, we will be available, upon request, to
represent you. However, such additional services are not included in the fees for the preparation of the
tax returns.
DocuSign Envelope ID: 34738570-7A10-42F5-9E36-198DEEB1EB80
The Valley Home Store, LLC
c/o Eagle County
December 13, 2018
Page 3
Our fees for tax services will be based upon the amount of time required at our standard billing rates for
the personnel working on the engagement, plus out-of-pocket expenses costs (such as report
reproduction, word processing, postage, travel, copies, telephone, etc.). Our standard hourly rates vary
according to the degree of responsibility involved and the experience level of the personnel assigned to
your tax work. However, we estimate that the fee for preparation of your 2018 tax returns will not exceed
$1,100. The above fee estimate is based on anticipated cooperation from your personnel and the
assumption that unexpected circumstances will not be encountered. If significant additional time is
necessary, we will keep you informed of any problems we encounter and our fees will be adjusted
accordingly.
Our invoices for these fees will be rendered each month as work progresses and are payable on
presentation. In accordance with our firm policies, work may be suspended if your account becomes
overdue and may not be resumed until your account is paid in full. If we elect to terminate our services
for nonpayment, our engagement will be deemed to have been completed upon written notification of
termination, even if we have not completed our report. You will be obligated to compensate us for all time
expended and to reimburse us for all out-of-pocket costs through the date of termination.
Any dispute under this engagement will be submitted to mediation. Our liability, if any dispute arises, is
limited in dollars to the total fees paid under this engagement. We have the right to withdraw from this
engagement, in our discretion, if you do not provide us with any information we request in a timely
manner, refuse to cooperate with our reasonable requests, or misrepresent any facts. Our withdrawal will
release us from any obligation to complete your return and will constitute completion of our engagement.
You agree to compensate us for our time and out-of-pocket expenses through the date of our withdrawal.
We appreciate this opportunity to serve you and believe this letter accurately summarizes the significant
terms of our engagement. If you have any questions, please let us know. If you agree with the terms of
our engagement as described in this letter, please sign this letter in the space below, and return it to us.
Very truly yours,
McMAHAN and ASSOCIATES, L.L.C.
RESPONSE:
This letter correctly sets forth the understanding of The Valley Home Store, LLC with respect to the tax
services to be provided by McMahan and Associates, L.L.C.
THE VALLEY HOME STORE, LLC
BY:
Signature
Title
Date
DocuSign Envelope ID: 34738570-7A10-42F5-9E36-198DEEB1EB80
Kimberly Bell Williams
Secretary
1/3/2019
