What it is
A clear written ending protects both sides. It tells the client what is finished, what is not, which dates are now theirs to meet, and how to get their records. For tax clients, it also stops the assumption that the firm is still watching deadlines.
This template has two versions: one for a finished engagement with no continuing services, and one for ending the relationship, or declining to continue, while work is open or recurring. Both cover final fees, return of records, working papers, requests from the next accountant and access to the client portal.
When to use it
- An engagement is finished and you want the client to know no continuing services follow.
- You are resigning from a client, or declining to renew, after the follow-up series has not worked.
- The client has chosen a new accountant and the file is being transferred.
What’s inside
- Version A: engagement complete, no continuing services, dates the client keeps
- Version B: relationship ending, status table, open time-sensitive matters, optional neutral reason
- Fees, return of client records, working papers and successor communication
- Portal access, third-party notices and an acknowledgment line
Standard cited
This template follows Circular 230 §10.28 / firm practice. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What records must be returned?
Under Circular 230 section 10.28, a practitioner must promptly return records a client needs to meet federal tax obligations when the client asks, and may keep copies. A fee dispute generally does not excuse that; if state law lets the practitioner keep records during a fee dispute, the practitioner need only return records that must be attached to the return and must give reasonable access to review and copy the rest. Work the practitioner prepared that is withheld pending payment for it is not a client record under the rule. State law and the AICPA Code may add to this, so have counsel review.
Do we have to give a reason for ending the relationship?
No. The template makes the reason optional and neutral. Say less rather than more, especially when there is a dispute.
How should we deal with the next accountant’s questions?
Client information is confidential. Answer a successor’s inquiries only with the client’s consent. The template asks for written permission before releasing information.
Does ending the relationship cancel unpaid fees?
No. The letter states the final invoice and any unpaid balance. Collection steps are a separate decision, and counsel should be involved if you plan any.
Related templates
- Client Follow-Up Letters (Three-Step Series)
- Client Data Retention and Destruction Checklist for CPA Firms
- Record Retention Schedule and Destruction Log (Excel)
- Client Acceptance and Continuance Form
Last updated 11/05/2026. All free templates.