Successor Accountant Requesting W/P's?

From TaxAlmanac

Process of completing 2003-2006 1040 returns. Have outstanding bill for $900. Client wants to change to new accountant (NA) so to have someone closer to work with since lives in Florida.

Client informs me she will eventually pay, just having hard times right now. NA requests my W/P’s consisting of TB, J/E’s, etc. Apparently client has now hired NA and he has

been asked to file these returns.

As EA, under Circ230, Sec 10.28, what are my options?

A. Do not release any W/P’s until paid in full and then, when paid, have client sign “Client Leaving and Release Letter”. Referring to 2006 1040 Gear up Seminar manual – see W-18.

      1.  Inform NA would love to assist however no communication until both items noted in A. are met. 

B. Return all original documentation to T/P and enclose letter stating returns have not been completed due to non-payment.

Reason for lateness of filing, was waiting for information from client. 2003 – 2005 have no tax liability since has NOL carryforward. No 1045's were filed or election to forgo carryback due to no returns required prior to 2002 since no income to report

I realize I am obligated to return all original documents even if not paid, however T/P only documents are a 1 page summary of Expenses, excel W/S for sales, and 1099-Misc for subcontract labor.

T/P, SP has used clothing business so files Sch C. Have no accounting system or bank reconciliations to present. Support is very limited, if at all.

My thought: Select B and inform NA will provide other support, besides original documents once paid $900. Will not however release any Original Information to NA till I have signed authorization from Client.

Comments/suggestions.

PLEASE DISREGARD IF THIS HAS ALREADY BEEN POSTED!!!!!