Discussion:Copies of client info
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Discussion Forum Index --> Tax Questions --> Copies of client info
| 28 February 2009 | |
| I'm sorry for not updating my personal info. I went from working in VT for myself and now I'm working for my 2nd small firm in NJ. I always photocopied everything my client gave me and kept it in order in a file in which the tax return flows. These 2 small firms in NJ only keep a copy of the Client's W-2. Is this a common practice? I find it not right. | |
| 28 February 2009 | |
| I think a number of firms have moved away from all of the copies and either just keep W-2 or scan the info. I'm old school and although it creates a ton of paperwork, I like having copies of everything with my organizer. I refer back to it and if clients are missing info, I'm able to give them a copy of the missing interest or dividend statement from prior year and highlight the acct number. I know it is more work but it's what I'm used to. | |
| 28 February 2009 | |
| We don't scan anything. I thought with the new preparer penalties we would want backup to support everything on the return. I also believe it helps to do the return year to year especially if someone else has to do the return. | |
| 28 February 2009 | |
| I copy everything that I use to make the return. most of the time I can shoot 2 pages on to one page. I get requests for past information once in awhile so its nice to have that for the client. With 99% efiling I don't mind a little paper in the office for supporting documents. | |
| 28 February 2009 | |
| You are not working for yourself and are not responsible for the business practices of your employer. If the hammer falls it will fall on them. taxea | |
Southparkcpa (talk|edits) said: | 28 February 2009 |
| We copy ONLY the W2. When we input into our software , we use reference to bank name, account number etc... I see NO value in copying a real estate tax statement, 1099 int's etc....
We prepare a stapled package for the client of the back up and use a "custome made sticker" that we place on the back up that says. "This is your back up, for your tax return. keep it safe in case of audit". Our firm does NOT keep it. This is your responsibility. We have represented clients on audit and they always have the package. | |
| 1 March 2009 | |
| I scan most of the supporting documentation that has any impact on the return. My scanner is reasonably fast, so this doesn't take too long.
If nothing else, it makes me feel better. ;) | |
| 1 March 2009 | |
| I copy the items I use to prepare the return. Southpark says that is old school, but I am old so it fits. Someday I will learn how to scan the stuff and set up files to hold the scanned documents. I will continue to retain either copies or images because they are useful. Today I was able to tell an elderly client what was missing, complete with an account number and customer service phone number. She has gone south for the winter and without my copies to know what to request the return would have had to go on extension. | |
Rgtaxservice (talk|edits) said: | 1 March 2009 |
| I only keep client W2s/1099R if the client efiles (only because I have to). I also keep any handwritten notes the client provides that detail any self reported deductions (med exps, uniforms, etc..) for my protection. Since Proseries imports prior year info its easy to tell what's missing. I notate most fields when I prepare the return.
Then on April 16th of every year I have a 'shredding party'. I shred all of the 'four year old documents'. It's a ritual. | |
Southparkcpa (talk|edits) said: | 1 March 2009 |
| As I read DZ and RG above, I believe that their practice model and mine are similar.
Think about HR Block etc... they copy almost NOTHING. If you make copies to feel better etc... it takes time. Time you can't reproduce. The fact that a client ask for a copy years later and you have it is nice. But Nice doesn't pay the bills. If we as preparers can't rely on a client to keep their copies... I think that says a lot about the client. | |
| 1 March 2009 | |
| I scan everything on my scansnap. does 18 pages a minute so only takes a couple minutes to make sure i have everything.
I use it to support the occasional notice of underreported 1099-b or the like. I always compare current year return to prior but sometimes client says it doesn't apply. If they get a notice i can pull out everything i have and say it wasn't given to me and charge to amend. | |
Rgtaxservice (talk|edits) said: | 1 March 2009 |
| If they get a notice i can pull out everything i have and say it wasn't given to me and charge to amend.
I have a rubber stamp to stamp all client docs that are provided to prepare the return. This prevents a client from saying I missed something that they didn't provide. If its not stamped, I never received it. I started doing that many years ago. A new client came to me early in that season. I repeatedly asked if I has all of his info, especially the dividend that was shown on the prior year return. He repeated told me he didn't get a dividend. He picked up his return a week later. A few weeks after that he calls to tell me that I missed a dividend on a 1099DIV and he shouldn't have to pay for the amended because I missed it. He brought it to the office. It was still in the envelope. The envelope was postmarked a week after he picked up his return. I charged him for the amended and have been stamping docs ever since. | |
Rgtaxservice (talk|edits) said: | 1 March 2009 |
| That was one dishonest client. I never sent him a mailer the following year and he never called again anyway. At least I learned something from it. | |
MDUBIN1441 (talk|edits) said: | 1 March 2009 |
| I have been practicing for over 30 years and early on after being accused of missing a 1099R form I created the following safeguard.
All forms that are provided to me and returned to the taxpayer with a red ink checkmark. I retain only forms that are related to withholdong taxes. Since using this simple system I have avoided many issues relating to what was provided to me by the taxpayer. Hope this is helpful? Mike Dubin CPA | |
