What it is
A notice has a date on it, and the work is short. A limited engagement letter keeps the scope to the notice, and avoids a promise about the result.
This letter records the notice, the response date, what the firm will and will not do, the authority needed, the client’s duties and a fee that does not depend on the result.
When to use it
- When a client brings in a notice such as a CP2000.
- When the matter may turn into an exam and needs a new letter.
- When you want to limit scope in writing.
What’s inside
- Notice details table
- Scope and exclusions
- Client duties, authority and limits paragraphs
- Fee table and signature block
Standard cited
This template follows Circular 230. 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
Why does the letter say the date on the notice matters?
The date on the notice is the date the agency expects a response, so late records from the client put the response at risk.
Can the fee be a percentage of the amount saved?
Circular 230 section 10.27 bars most contingent fees in IRS matters, with listed exceptions. This template uses a fee that does not depend on the result.
What if the notice becomes an examination?
The letter says representation in an examination, appeal or collection needs a separate written agreement.
Related templates
- Tax Controversy Representation Engagement Letter
- IRS CP2000 Notice Response Letter
- IRS and State Notice Log with Response Deadlines
- Engagement Scope Change Letter (Addendum)
Last updated 11/06/2026. All free templates.