Scan & retain orginal W-2, 1099-R etc. or not?

[AZ-Tax]

Finally broke down and purchased a Fujitsu 6130 scanner and yes is quite fast vs my pre historic Brother MFC 7220. Most of the orginal W-2's, 1099-R's and few other forms come with several orginal copies. For those of you that scan, do you retain any orginal's?

[Greenbriar]

I retain originals

I efile everything and I've stopped printing a copy of the 1040, with some exceptions, so I only paper file my worksheets, copy B of the W2 or 1099 (I staple copy C to the client's copy of the return). My paper costs are way down. I bought the Fujitsu 5110C about four years ago and it changed my life because I work alone. most days I don't turn on my copier.

[Acownt4it]

paperless

I started scanning all the necessary documents this year and I am not retaining any paper copies. It is so liberating and the time saving. I am not printing any client copies of the returns. They must retrieve their copy of the return from my secure client portal. I save about 30-45 minutes per return and the paper savings is astounding.
I am so glad I went paperless.

[Gretel]

I scan in all original documents and work papers and retain the B copies of W-2's etc. will I staple to form 8879. I print a copy for the client (quite a number of my clients don't have access to computers) but do not print any longer my copy.

For business clients I also keep there biz records in my file until I have processed the following year. I works very well for me. I started this process 3 years ago and am now at a point where I have all open years on my computer.

I also have two monitors which I use a lot in tax season. I couldn't live without them any longer.

[oceanlovin'ea]

LOVE my dual monitors!!!!

I started with dual moniters last year. I absolutely love it.

I don's scan documents yet. That will probably be the next thing I do. I do list on my workpapers what they have so I can always look back to see where they worked or what bank account they had. I attach a copy of the W-2 or 1099-R to the 8879 which I keep in my file.
I print a copy for my clients. Many of my clients don't have computers either so I give them their copy to take home with them. I think I will continue doing that. I think they feel better leaving with a finished product.

For my business clients, I keep their bookkeeping for the current year and the past year in the file. I print a copy of their tax return for them.

I feel I made great strides this year in moving up in the world. I got a new small HP black laserjet printer. I got an Iphone and square up so I can now take credit card payments from my clients. I signed up for Refund Advantage so that the fees can be withheld from a refund if my clients desire. So far I have had one of each.

So we will leave scanning documents for next year.

Linda, EA

[powerage]

We only keep the B copies of W-2's, and 1099's if they have withholding. We don't scan anything at all, we just keep the the signed client files.

[taxea]

My memory is that the IRS requires us to keep the original W-2 and any 1099's when taxes have been withheld. To satisfy both the feds and the state I retain 2 originals of the W-2 (also in case I need to do a paper return that may require them to be attached. In which case I retain scanned copies for my file.
I scan all documents that the client gave to me and give back everything they provided, sans the aforementioned W-2s and 1099s.

[outwest]

We scan everything that appears on the return.

to some extent it is a CYA thing against the CP2000 issues. To be effective though, you have to have a documented, consistent policy of scanning all documents used in the return. Doing it hit or miss doesn't help you much.

We scan to a standard pdf format, the file will be time stamped by the system a little before the scanned, signed 8879 and engagement letter, and a pdf of the return.

With a quick, reliable Fujitsu 6130 scanner it's usually scanned in before the printer finishes with the clients return copy. Staple to the folder, client docs in the pocket, sign the forms, payment please and out the door.

Backup, Backup, Backup...

[taxea]

to some extent it is a CYA thing against the CP2000 issues. To be effective though, you have to have a documented, consistent policy of scanning all documents used in the return. Doing it hit or miss doesn't help you much.

We scan to a standard pdf format, the file will be time stamped by the system a little before the scanned, signed 8879 and engagement letter, and a pdf of the return.

With a quick, reliable Fujitsu 6130 scanner it's usually scanned in before the printer finishes with the clients return copy. Staple to the folder, client docs in the pocket, sign the forms, payment please and out the door.

Backup, Backup, Backup...

I scan everything for future reference and I make a hardcopy for my client file to prepare the return with.

[veritas]

From TTB

Finally broke down and purchased a Fujitsu 6130 scanner and yes is quite fast vs my pre historic Brother MFC 7220. Most of the orginal W-2's, 1099-R's and few other forms come with several orginal copies. For those of you that scan, do you retain any orginal's?

Electronic Return Originator Responsibilities
The EROs must retain the following material until the
end of the calendar year in which a return was filed.
• A copy of signed Form 8453, any supporting
documents that are not included in the electronic
return data, and copies of Forms W-2, W-2G, and
1099-R.
• A copy of signed IRS e-file consent to disclosure forms
for taxpayers who signed using an electronic signature.
• A copy of the electronic portion of the return that can be converted
into an electronic transmission that the IRS can process.
• The acknowledgement file for IRS accepted returns.
Forms 8878 and 8879. These must be retained for three years
from the due date of the return or the IRS received date, whichever
is later.
Scanning. The EROs may store an electronic image of all paper
records they are required to retain for IRS e-file. This includes
Forms W-2, 1099-R, and Forms 8878 and 8879. The electronic storage
system must be able to reproduce documents with a high
degree of legibility, including signatures, when viewed on a video
screen and when reproduced in hard copy. See Revenue Procedure
97-22, Retention of Books and Records, for information about
standards for an electronic storage system.


Good choice on the scanner.

[dan doshan]

We only keep the B copies of W-2's, and 1099's if they have withholding. We don't scan anything at all, we just keep the the signed client files.

One reason to keep the above, even if no withholding, is in case the client later gets a letter saying they owe the IRS for failing to include a W-2 or 1099 etc. They then come in and say to you that they furnished you with all of the information so it's your fault. At least you can show them the above documents they brought in. Of course, that is not definitive proof, but at least something to hang your hat on.

[taxea]

One reason to keep the above, even if no withholding, is in case the client later gets a letter saying they owe the IRS for failing to include a W-2 or 1099 etc. They then come in and say to you that they furnished you with all of the information so it's your fault. At least you can show them the above documents they brought in. Of course, that is not definitive proof, but at least something to hang your hat on.

I agree and that is why I keep two copies of original W-2 and all 1099's, then scan all other docs the TP provided.
Looking at the post prior to Dan's there is no way I would destroy the forms at the end of the year. The whole purpose of having them in the file is if the IRS chooses to audit my office. I seriously doubt they will be doing any kind of audit that quickly. I keep everything for 6 years. Each year I pull the oldest files and shred them. I also back my files up on USB. I have files going back to 1994. When doing compliance work and OIC/sI am very glad that I never completely destroyed old files.

[AZ-Tax]

Scanned copies vs orginals

Scanning. The EROs may store an electronic image of all paper
records they are required to retain for IRS e-file. This includes
Forms W-2, 1099-R, and Forms 8878 and 8879. The electronic storage
system must be able to reproduce documents with a high
degree of legibility, including signatures, when viewed on a video
screen and when reproduced in hard copy. See Revenue Procedure
97-22, Retention of Books and Records, for information about
standards for an electronic storage system. Good choice on the scanner.

Am I reading this correctly that a good clear legibile scanned copy can replace the original to satisfy the IRS?

[powerage]

Just glancing over the thread, for the most part we do keep multiple hard copies of the W-2's. With a ADP W-2, the client gets the top, I keep the bottom 3 copies. We also charge a small document storage fee, because we keep the signed files for at least 5 years.

[taxea]

1 for IRS, 1 for each state that is filed just in case you need to send it to the taxing agency.