Pickup notes?

[Black Bart]

Relatives, friends, kids, whoever -- I know somebody will be coming by to drop off and/or pick up somebody else's tax return. I've been sending notes home fpr T/P to sign and send back, but now wonder if I need the formal consent form. I know some here aren't going to give them to anybody except the taxpayers, but that's almost impossible for me in some cases (disabled people, lots of out-of-town clients, etc.). Any opinions?

[dtlee]

Relatives, friends, kids, whoever -- I know somebody will be coming by to drop off and/or pick up somebody else's tax return. I've been sending notes home fpr T/P to sign and send back, but now wonder if I need the formal consent form. I know some here aren't going to give them to anybody except the taxpayers, but that's almost impossible for me in some cases (disabled people, lots of out-of-town clients, etc.). Any opinions?

As you posted from Bees yesterday and as I agreed to, you do need some kind of authorization from the client in these scenarios.

Like I said, I disagree that the regulations were intended to cover scenarios where the client is requesting you to act, since they are focused on when you are requesting permission (i.e., "consent" to use or disclose the tax return information). I am hopeful that the IRS is working on clarifying the poor wording of their regulations as they apply to this scenario.

In terms of someone dropping off a return, I think you don't need much authorization to receive a hand-delivered package from your client. If you are going to get the specific tax information from that client through an intermediary, you need to have some assurances that this person has the authority to speak on your client's behalf. A disclosure authorization allows you to give information, but a POA would seem appropriate.

In terms of disclosing the completed return to a third party in terms of having someone pick up a return, I think you need to have some level of authorization as well. While I do not think that the rigor of a disclosure form (font size, wording, copy provided to client at time of signing) is required, I do not think it would hurt to use the same form and procedure for all such disclosures.

That being said, I don't like it. Like you, my practice is very service oriented. I have clients who have in the past called me and said things like "Grandma said you are doing her return today. I am going to see her tonight, can you give her my return instead of mailing it?" I don't know how I am going to handle these scenarios without appearing to be an uncooperative bureaucrat. Even though you know that the person is trustworthy, you also know that it is not your client. I think you really need something from your client saying that you can provide the tax return to that person in the manner you are providing it. How we do this in this ever more distrusting world, I don't know.

[Jiggers]

Hadn't thought about that

That being said, I don't like it. Like you, my practice is very service oriented. I have clients who have in the past called me and said things like "Grandma said you are doing her return today. I am going to see her tonight, can you give her my return instead of mailing it?" I don't know how I am going to handle these scenarios without appearing to be an uncooperative bureaucrat. Even though you know that the person is trustworthy, you also know that it is not your client. I think you really need something from your client saying that you can provide the tax return to that person in the manner you are providing it. How we do this in this ever more distrusting world, I don't know.

I have clients that pick up their return, their elderly parent's return, their sister's return, etc.

I always put those returns in sealed envelopes. And I will continue doing that.

The only way that there could be a problem would be if there is an IRS person in my office and see that happen.

[dtlee]

I have clients that pick up their return, their elderly parent's return, their sister's return, etc.

I always put those returns in sealed envelopes. And I will continue doing that.

The only way that there could be a problem would be if there is an IRS person in my office and see that happen.

I put the returns in sealed envelopes as well. I treat such scenarios as a delivery by other than the major carriers. I agree with you that the only people really concerned about the scenario is the IRS (and us).

[thomtax]

I'm like Doug said. As a matter of fact, I have one client, a sch c and f, that I have filed for several years and never saw him until last year. His mother kept up with a lot of his paperwork, brought in the information, took the forms for him to sign and picked up the return form him. He works from daylight until dark.

I don't really know how I am going to handle situations such as this. Probably "Play it by ear" and hope that nothing goes wrong - I just don't know.

LT

[NotEasy]

I don't really know how I am going to handle situations such as this. Probably "Play it by ear" and hope that nothing goes wrong - I just don't know.

LT

What would happen in case something really goes wrong. What kind of penalty would you be assessed? What kind of legal responsibility would you be exposed to? I am sure a lot of us want to know more about this.

[Black Bart]

Legal? Don't know.

What would happen in case something really goes wrong. What kind of penalty would you be assessed? What kind of legal responsibility would you be exposed to? I am sure a lot of us want to know more about this.

dtlee:/ Thanks for the info -- next time I'll read the fine print in your posts before I disagree/agree. Yours & Jiggers sealed envelopes is a good idea in the sense that some clients who probably don't want relatives seeing their stuff would be pleased, but I don't think it would pull much weight with IRS (all they'd have to do is tear it open and say it wasn't enclosed in anything). Still, everything helps so I'm going to do it. My present pick-up note says they authorize disclosure of all their tax info to John Doe or whoever -- followed with signature line, date, and also I've added lines for T/P to fill in their SSN/DOB (another fig leaf I suppose).

NotEasy:/ I guess if IRS ruled it's a consent form case, then it's -- what was it? -- a thousand bucks and a year's vacation at county. Hope they have first offender deals and wait 'til after tax season 'cause I can't go right now.

Seriously though, I think the chances anything will ever come of it are remote, but unfortunately it just takes that one (a lawyer once told me most lawsuits are a surprise). A while back two of my clients (Mom and Deadbeat Daughter) got into it over who claims a kid and Mom called impersonating DD to find out what she was doing (knew her private info--DOB/SSN/income/everything) -- my assistant caught on it wasn't DD and Mom hung up. DD called later threatening me with IRS complaint for discussing her business with Mom -- at the time I was unaware of previous discussion, thought she was just a nut, told her to "do whatever you think you need to do," and hung up on her. She and Mom settled the argument between themselves, I didn't do their taxes, and I never heard anything from IRS, but I worried about it a lot and started being more careful. Like LT said, guess I'll play it by ear and hope for the best.

[JG EA]

Phone call from client - I say

"Please write a note and sign it so your boyfriend can pick it up." (Seal envelope and have the client's signature handy to see if it compares while pretending to do something else when the boyfriend brings in the note.)

Not a consent form with a telephone number and email address to report me, but I think it is great due diligence.