Paperless filing question

[equinecpa]

I try to run a virtually paperless office. When I receive copies of IRS notices I scan them to a file and save them in a client folder. My question is in which folder to save the letter; the folder for the year in which the notice is received or the folder to which the letter pertains?

I'm currently filing notices and letters received in 2009 in the clients 2009 folder...but I was thinking if something drags on it would make more sense to file a letter pertaining to 2008 perhaps in the 2008 folder and date the file.

So what do you do and why?

[Gretel]

My year folder have the tax return and tax return info only including amended. Everything else goes into separate folders.

[Lion]

Year of Problem

Put it in the folder with the return in question, or if you cannot add to a folder with a return, put it in a folder with the client name and year of the return being questioned so you can match up the letter to the information/return that's being questioned.

[RLymanC]

Paperless Office

You have 40 clients filed before you can transmit to the IRS & State. They are all ready to go on the first allowable day to transmit. OK So FAR, bingo, you press transmit:

How do you track:
1- Accepted returns IRS
2- Rejected returns IRS
3- Accepted IRS reject State
4- Reject State Accepted IRS
5- Reject IRS reject State
6- Accepted RAL's
7- Rejected RAL's flipped to "Wait for IRS deposit"
8- How do you track "resent" returns?

If you are truely paperless this would be a nightmare as far as I can see.

[Lion]

E-File

I don't do RALs so can't comment on their acceptances or rejections. I check my E-File Status at least twice per day to watch for Accept and Reject (rare) messages. Also, I receive an email when the Federal return is accepted. I print it out and keep it in a stack while I watch for the associated state acceptance(s); CT can take a couple of days after the Federal. When I see Accept for all associated states, I forward the Federal email to the client along with a note along the lines of

"The IRS has accepted your income tax return on 13 April 2009 as explained in the message forwarded below. NY accepted your return 14 April and CT on 15 April, but neither NY nor CT send out separate acknowledgements.

Please remember that you can contact me at any time. Blah, blah."

Then I staple the Federal email to the Form 8879 and file it in my DCN folder for that year. Basically, I don't file Form 8879 until everything has been accepted.

I do large returns but not a lot of them. So, I have only a couple Forms 8879 sitting on my credenza at any one time waiting for acceptances. If I had a larger volume, I'd probably have color-coded folders or a log or...

Basically, whatever system you use to traffick a return through will just continue for a day or so after you transmit until you see that Accept on your screen.

[DMICPA]

Filing notices

I keep all notices with the year in question. If the notice is for 2008, it goes in the 2008 file. Should something comes up, I know all correspondance regarding that tax year is in the file. It is possible to get a notice regarding 2007 in 2009. Put the 2007 notice with the 2007 file.

Bob

[AuditorTurnedGood]

You have 40 clients filed before you can transmit to the IRS & State. They are all ready to go on the first allowable day to transmit. OK So FAR, bingo, you press transmit:

How do you track:
1- Accepted returns IRS
2- Rejected returns IRS
3- Accepted IRS reject State
4- Reject State Accepted IRS
5- Reject IRS reject State
6- Accepted RAL's
7- Rejected RAL's flipped to "Wait for IRS deposit"
8- How do you track "resent" returns?

If you are truely paperless this would be a nightmare as far as I can see.

All but 6 and 7 are tracked my my software's client status managment modual. Thank heavens.