Keeping E-File records

[ttbtaxes]

I remember reading a thread about someone who has a hellish experience last tax season with an IRS agent auditing the preparer's 8879 records. In light of that:

1) Do you keep your 8879s in one file or do you put the 8879 separately in each client's file?

2) When the IRS accepts the transmitted return is there an actual IRS form they send to acknowledge?

3) My software asks me to select the method electronic notification by the IRS. Do you choose email or postcard?

4) How do you organize/file e-file acceptance notifications?

Kindly forgive me as I know these are e-file newbie questions and probably painful to read for experienced e-filers.

[Jack the Tax Lady]

What we do...

I remember reading a thread about someone who has a hellish experience last tax season with an IRS agent auditing the preparer's 8879 records. In light of that:

1) Do you keep your 8879s in one file or do you put the 8879 separately in each client's file?

2) When the IRS accepts the transmitted return is there an actual IRS form they send to acknowledge?

3) My software asks me to select the method electronic notification by the IRS. Do you choose email or postcard?

4) How do you organize/file e-file acceptance notifications?

Kindly forgive me as I know these are e-file newbie questions and probably painful to read for experienced e-filers.

1. We keep our 8879s in our individual client files. If the IRS has a question about a particular one, that is where you will want it.

2. This may depend on your software. We receive an acknowledgement report from our software provider that shows returns as either Accepted or Rejected by the IRS. We print this out and put it in a binder in chronological order.

3. Not sure what you are referring to here, we receive email notifications from the IRS and also from our software provider.

4. I believe you are referring to IRS acknowledgements here. See answer to question 2.

Hope this helps some.

Good Luck.

[Possi]

Welcome to the board!

Linda was right, this is the most friendly and most helpful board. You'll see me ask many more questions than I attempt to answer... but...

When I e-file, I have a DCR report that I print and file. When it is acknowledged, I print the "ACK" and file it with the DCRs.

The 8879 and State 8453, I file with the client's return.

Most people are going paperless now. I envy them, because I'm still too "old school" to go paperless.

I also have an off-site backup called "Carbonite" which costs me less than $60/yr. It backs up my entire computer. The initial back up took several days, but now it is fast and I don't even know it's happening. I first heard of Carbonite through NATP. An article in their publication recommended it and I jumped on it.

HELLO to everyone else on the board! Our "water cooler" is officially opened, right?!

Blessings,
~donna aka possi

[taxmandan]

We separate the 8879 from the clients files and keep them together in another folder. The IRS can walk in and ask to see them and pulling them from each individual files would be very time consuming. They don't have to ask for a specific 8879 by name, they can just randomly peruse the forms and then compare signature dates and filing dates to check compliance.

Also, you don't want to hand them the entire client files with tax information, to avoid revealing client data that you are not authorized to release. No fishing trips in my office.

[BP.]

We separate the 8879 from the clients files and keep them together in another folder. The IRS can walk in and ask to see them and pulling them from each individual files would be very time consuming. They don't have to ask for a specific 8879 by name, they can just randomly peruse the forms and then compare signature dates and filing dates to check compliance.

Also, you don't want to hand them the entire client files with tax information, to avoid revealing client data that you are not authorized to release. No fishing trips in my office.

Starting this year I'm keeping a separate file with the 8879's numerically by SSN.

[Jack the Tax Lady]

When we had a compliance audit

When we had an IRS compliance audit, the auditor wanted to see that we had also kept copies of the w-2's on file, as required. We aren't going to keep those in a separate file.

[rgtaxservice]

....

I file the efile documents separately.

I make an efile packet by attaching the signed federal 8879 and state form, the efile acknowledgement, and the client's W2s together. Then I file all efile packets together. That way all efile info for a given year is in one place. Additionally, it makes it's alot easier when I have my annual shreding party.

[ChEAr$]

paperless

Since I'm older than POSSI, one might think I, too, would rely on filing paper away the old fashioned way, in a four drawer file cabinet.

But today my first client was in and the return done and efiled already. His two docuemnts, the 8379 and copy b of his 1099r have been scanned and are electronically filed away in the software provider's document manager.

[oceanlovin'ea]

separate file

I have one file for 8879's with w-2's attached to them.

I have another file with the report from my software company showing transmitted returns and with that I put the acknowledgments showing the transmitted returns accepted by IRS.

I have another file that I keep the EIC preparer checklist in.

I have another file that I keep signed privacy agreements in.

I remember being told at a seminar or shareshop that you do not want to have to get out client's folders which would have other confidential matter in them if IRS were to come in and ask for one specific thing.

Linda

[ttbtaxes]

Form 9325

I am assuming the "ACK" that the IRS sends is Form 9325. Is that correct?

http://www.irs.gov/pub/irs-pdf/f9325.pdf

Where do you file this form? In one folder with all other 9325s or in the client's folder or with the 8879s?

[oceanlovin'ea]

I don't print out 9325's, just the acknowledgment from my software company.

I keep acknowledgments in one folder and transmittal logs in another folder.

Nothing of that nature goes in client folder, at least for me.

Linda

[ChEAr$]

I am assuming the "ACK" that the IRS sends is Form 9325. Is that correct?

http://www.irs.gov/pub/irs-pdf/f9325.pdf

Where do you file this form? In one folder with all other 9325s or in the client's folder or with the 8879s?

IRS does not send form 9325's.

In fact nothing even requires us to print them out for client.s
So I don't.