Sale of tax practice

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  • Skeemo
    Member
    • Nov 2005
    • 39

    #1

    Sale of tax practice

    I'm aware of Consent forms needed from each client to release tax return information. Does this extend to names and addresses only? i.e. Could a preparer sell his/her client list only - but not the actual files or tax data without getting the disclosure?
  • kpangelinan
    Senior Member
    • Sep 2007
    • 511

    #2
    why

    Good question, but why are you reluctant to give prior tax info if you're selling your practice? Just to avoid the disclosure?

    Comment

    • Skeemo
      Member
      • Nov 2005
      • 39

      #3
      Exploring options

      Just exploring different options. One is to get all disclosures possible, but wondering if it is OK to give buyer names & addresses of those who don't sign disclosure. Results could affect value.

      Comment

      • JON
        Senior Member
        • Jul 2005
        • 1265

        #4
        It is

        a good question, my guess is you have to inform all clients of the sale. Tell them they can pick up any of the information you have of theirs and if not picked up it will be turned over to buyer??? Rules are tough in my business there is usually a merger then a sale.

        Any other ideas.

        Comment

        • AJsTax
          Senior Member
          • Jun 2008
          • 629

          #5
          You need to read

          the regs on disclosure requirements. There is something sticking in the back of my mind that there is an exeption to this if the entire business is sold. Maybe you just have to notify the clients this is going on and dont have to get their signatures. That would be totally unreasonable to have to get the clients to sign.
          AJ, EA

          Comment

          • taxdude71
            Senior Member
            • Jan 2007
            • 132

            #6
            That sounds right. I know in the past when we purchased other practicies we were required to send a letter out explaining what was going on and if anyone objected to us haveing their information to let us know.

            Comment

            • ttbtaxes
              Senior Member
              • Jan 2011
              • 580

              #7
              Take a look at §301.7216–2(m):

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