PDF Files

[Chief]

I am planning on using PDF copies of all my returns and documents of my clients for the nex tax season. I have some questions for those of you who are already doing this:

1) When sending PDF files to your clients for review before signing the 8879 what ways do you secure these files so your client cannot just print them out and file paper copies without going through you. Is there a way to inscribe a water mark or the phrase DO NOT FILE or NOT FOR FILING. Is there some way to prevent these copies from being used to file with the IRS thus bypassing your office.
Of course rather than sending the entire return could you possibly send summation tables? Would they provide enough information for review.

2) What PDF Machine do you use for the software? Is it provided with your software? Do you recommend the use of PDF Professional Software? If provided with your software, what software do you use?

3) If your office is not paperless have you considered this approach? If no, why not?

4) Having PDF files of the 8879 and supporting documents does this meet the 3 year rule by IRS for retention of these files?

5) Which hardware do you use scanning? Which would you recommend at this time for someone to begin scanning documents into PDF format?

Any other comments that you may like to make would be appreciated.

[Don B]

These folks can take care of all of your concerns, including the security factor.

http://www.adobe.com/products/acrobatpro/main.html

[veritas]

First check with your tax software vendor. We use Lacerte which offers a product called DMS. It works seamlessly with your tax software.
When we send a tax return or other sensitive material we use security which comes with DMS.
Fujitsu scanners are probably the leaders in hardware for scanning.
Electronic copies are acceptable for the IRS.

Using an electronic filing cabinet is aweome. It is the equivalent of going from dot matrix printers to laser printers or dialup to dsl.

We have used the DMS product for three years now and have disposed of several filing cabinets.

Lastly backup will become even more critical including keeping data offsite. If you loose the datafile you must have a way to recover.

[KJ Judd]

Since it's just me, Lacerte DMS was too pricey for me. Lacerte does allow you to print .PDF. I use Adobe Acrobat to password protect the files before sending. I use last four digits of SSN. This is my first year using Adobe. I also like it for sending out tax organizers instead of mailing.

[veritas]

$200 is pricey? I can print anything in DMS including to printer, fax or email. Lacerte automatically sends my file copy to the client folder without my intervention.

[KJ Judd]

I'd have to look at my quote again. I was told the amount was per year. Where I purchased Adobe Acrobat for $100 from the technical college where I teach a two night course and I do not need to renew that each year.

[veritas]

It is 200 per year less early sign up discount plus whatever other discounts you might get.