To whom it may concern,
I am writing in response to a written request from my client, Taxpayer [and Spouse].
This letter confirms to you that I prepared the federal and state tax returns (federal Form 1040 and state Form 540) for 20xx and 20yy for Taxpayer [and Spouse]. These forms included Schedule C, titled “Profit or Loss From Business.” With my client’s authorization, I can send you a copy of these tax forms so that you can perform your due diligence. If you are making such a request, please send me an authorization signed by my client to release this information to you.
I prepared the tax returns from information that was provided to me by my client. As is normal in this type of professional service, I was not hired to perform, and did not perform, audit or other types of verification of the information provided to me. Thus, I cannot make any professional representation or assurance of the accuracy of this information or the sufficiency of the tax form for your credit decision-making purposes.
I prepared the tax returns in accordance with the applicable IRS rules and regulations solely for filing with the IRS and California Franchise Tax Board. The tax forms thus do not represent any assessment on my part as to the creditworthiness of my client. The tax forms do not include any statement of financial position or income and expense for these years in accordance with generally accepted accounting principles (GAAP) and should not be construed to do so. I can provide a GAAP report, but it will require additional time and resources to prepare and will result in a significant fee to my client. The standards of my profession prohibit me from making assurances relating to solvency; however, I am permitted to present prospective or pro forma financial information. These, too, would require additional fees to my client.
As you know, a credit-granting decision should be based on a lender’s exercise of due diligence in considering many factors. Your use of this letter from me, and the tax forms, in the exercise of your due diligence is solely a matter of your responsibility and judgment. This letter is not intended to establish a client relationship with you but is a response to a request from my client, Taxpayer [and Spouse].
This letter gives you all the information I can provide to you according to my professional standards. If you need additional information relating specifically to the tax forms prepared by me, please let me know.