Is an email Authorization?

[equinecpa]

I just received an email from a former client requesting I fax a copy of a tax return I prepared years ago to her new accountant. Is her email considered written authorization to release the document? It specifically states who I'm to send it to and she has "signed" it.

Carolyn

[solomon]

I just received an email from a former client requesting I fax a copy of a tax return I prepared years ago to her new accountant. Is her email considered written authorization to release the document? It specifically states who I'm to send it to and she has "signed" it.

Carolyn

I would ask at a minimum for last 4 digits of social security number - perhaps copy of driver license as well.

[equinecpa]

Do you mean you'd ask the client to prove they are the ones issuing the request even though it's from their email address?

[veritas]

I don't do

copies of returns to anyone but the client.

They can get the copy to their new accountant, banker, investment advisor or other general nuisance.

[taxmandan]

copies of returns to anyone but the client.

They can get the copy to their new accountant, banker, investment advisor or other general nuisance.

Agree. I usually hand it to them when they come in to pay the $25 handling fee, no more freebies.

[JohnH]

I'd certainly call the client to verify that they asked for the info, then email the copy of the return to the client in a password-protected pdf. Then they can send it to whomever they wish, either by printing out the return or by forwarding it to the third party.

[ChEAr$]

IRS rules now say that we must get a signed letter from client in order to provide tax
related information, e.g. 1040 copies, to any third parties, and such a letter has to conform to IRS regulations as to content and type size.

So the rules have changed, and to go along with them, I simply refuse to fax any tax return
to a local bank, explaining that client has to come in and sign such a letter before I can do that. And if client's coming in anyway, might as well simply make a copy of the return for
him and let him take it by the bank.

[gkaiseril]

You could always have a faxed request with the client's signature, a scanned image or the form with the client's signature, or clear digital picture of the form with the client's signature.

It would not be impossible to have a form that has a digital ID signature that can be independently verified and complies with the federal digital signature requirements and UCC. But, I doubt there is a standard form out there for with this feature. Also the taxpayer would have to obtain a digital signature.

There is even an iPhone app that lets one take the image of a check and deposit that check to their account.

If you gather or record the client's email address as part of the interview process, you would have another piece of data to confirm this email came from your client. Also a phone call to a known client phone number might also provide some additional verification.

There are many ways you could deliver the return besides a fax. Many programs can print the return as a PDF and with a full copy of Acrobat, Nitro PDF, or other full PDF processing program, not Reader, you could password or digital certificate protect the PDF for opening and printing. If you do fax the form confirm the destination fax number by fax and return document of phone call before faxing.

I believe you can send the tax return to another tax preparer providing service to the former client, but you would need to verify that that individual is truly a tax preparer helping the former client.

[equinecpa]

I have no problem creating a password protected .pdf, that's how I remit most of my returns to my clients. My real questions is whether her email request is signed authorization to send the fax. Does anyone have a link to the IRS current instructions on what is "signed authorization" - I couldn't find it by searching on their site.

For this time I'll probably just send my client a .pdf file and tell her she can forward it to her accountant.

[JohnH]

That seems the most logical way to do it under almost any circumstances. Provided you know the email address is valid and you properly password protect the file, you've complied with the client's request at no risk to yourself. And you don't need to have any sort of written authorization or permission to keep up with in your files. What they do with it once it's in their hands is entirely up to them. And when they lose the email and ask for it again, you have it stored in your "sent" folder.

[Gretel]

I have no problem creating a password protected .pdf, that's how I remit most of my returns to my clients. My real questions is whether her email request is signed authorization to send the fax. Does anyone have a link to the IRS current instructions on what is "signed authorization" - I couldn't find it by searching on their site.

I think any disclosure has to be in a mandated format (down to font size, etc.) and I don't know of any exception. Don't ask me for the source, though.

[erchess]

Disclosure

Gretel is right with regard to sending someone's return to anyone else which is why I don't do that. But do I need more than an email or a phone call to email or snail mail the client a copy of their own return?

[ChEAr$]

You could always have a faxed request with the client's signature, a scanned image or the form with the client's signature, or clear digital picture of the form with the client's signature.

(balance snipped.....

Sure, except for the fact my client doesn't have a computer, or fax machine, nor is he
technically savvy, except for working on cars. (grin

[ChEAr$]

I think any disclosure has to be in a mandated format (down to font size, etc.) and I don't know of any exception. Don't ask me for the source, though.

All these new fangled disclosure rules apply to furnishing information to third parties and
do not apply to furnishing tax data to clients.

[gkaiseril]

Well, your client could use one of the big box office stores that has a business service center, the UPS Store (Kinkos), or other business service center for a fax service to receive and send faxes. Just do not include very personal data in the faxes.