I have a client that has asked me to speak to her father’s prior tax preparer to request information he has regarding 2003 & 2004 tax information. My client has power of attorney over her father’s affairs due to him not being able to take care of himself. She has approached the former preparer several times for her father’s info but to no prevail. Now she wants me to ask for the information. What is the protocol for doing so, do I write a letter requesting the information or give him a call. Any help from someone who has done this before would be great.
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Wait
Wait another month. -
Its not your place to demand records but give the guy a call and ask what the problem is and be willing to pay for cost of copies. If the guy is a CPA he will probably provide the info but may want a signed note from your client allowing release.Originally posted by TaxmanComment
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client
I would have the client call again and ask if the preparer wants her to send a copy of her power of attorney and send a release. She needs to be specific about what she wants. Is it just depreciation, copies of all years, what? The more she wants, the longer it may take to obtain. The client needs to look for any copies her father may have laying around. Many times they have the copies, they just think it is easier to have the preparer provide them. Not so, at least for the preparer.Comment
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What info does she want?
If she fills out a 2848 for you, you could then call the IRS and get a transcript of prior years returns faxed to you.
Of course, if you're looking for depreciation schedules or such, it may be best to ask the other preparer.
BillComment
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Documents
The other preparer is required by law to release any financial information in his possession and especially if required to complete the current year return. This is required because the taxpayer may not be able to be compliant with the tax laws without the documentation. This release is required even if he is owed money.
ProfitComment
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Citation Please
OK, Citation please. Which law?Comment
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Comment
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Release of information
The only thing you are required to release are the original documents such as W-2's, 1099's, bank statements, etc. You are not required to release any prepared return that has not been paid for.Originally posted by UnregisteredJiggers, EAComment
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read the circular!
the only time you can withhold if not paid is if state law allows it. if a client needs a depreciation schedule or other relative information for preparation of current year return you are required to release it. it's spelled out plainly in the circular.
I don't agree with it, but those are the rules we must work by.Comment
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not your problem
>>The only thing you are required to release are the original documents<<
That's right. You have to return the client's own records, even if they owe you money. But you don't have to release your own work product unless ordered by a court. Since the taxpayer is required to maintain records to support his tax return, you can presume that he already has all the information he needs to comply, the same information he gave you previously. If he doesn't, that's not your problem.
It is an unreasonable request during the last weeks of tax season. Let him file an extension.Comment
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Read Cir 230, 10.28, last sentence
"Records of the client....does not include any return, claim for refund, schedule, affidavit, appraisal or any other document prepared by the practitioner or the practitioner's firm, employees, or agents if the practitioner is withholding such document pending the client's performance of its contractual obligation to pay fees with respect to such document."
I have no problem with providing copies of client returns, including depreciation detail, if the bill has been paid. He has been given all his original documents back with the return and he has been given a copy of the return. I also charge him for providing additional copies of these. He should have kept his copies; that is not my problem.
I do not have to release any return without payment of the bill. This includes any depreciation detail that is part of that return that has not been paid for.
I will return all original documents that I have that were presented for the preparation of that return that has not been paid for.Jiggers, EAComment
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i did go back and read that after my post
I agree, give back originals and supporting docs. get paid prior to other forms being returned.Comment
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documentation
That is correct only original documentation. You are not required to release work that you did, without being paid.
ProfitComment
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Copy of prior year
I've done it two or three times, but I really hate to because there's always the chance of it becoming awkward or embarrassing depending on the attitude of the prepper you're calling.Originally posted by Taxman
Actually, I don't think there is any protocol or really "correct" way to do something like this. About all you can do is call and ask. Maybe they'll take offense at losing a client--maybe they won't. If he/she just needs a POA/fee, then I'd tell the client and if they don't wanna cooperate, I'd give their stuff back and tell them I'm not doing the return.
If the former preparer does not want to furnish anything under any circumstances, then I'd advise client to file a 4506 "Request for Copy of Tax Return" and extend (takes weeks to get a full copy). Or, like some others have said here before, you can get a transcript faxed the same day if you don't need much information.
I don't know what the law on this is, but I've been to court on occasion and by the time you get through with trying to compel somebody to do something legally, you almost don't care whether they do or not.Comment
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