What docs from TP do you scan or copy?

[AZ-Tax]

I dont know if this thread has ever been started before. Besides scanning all those official tax docs like 1099R, 1099B, 1099int, 1099div, 5498, W-2, ssa-1099 etc.

Do you scan the year end payroll statement or just the w-2?

Do you scan TP's carbon copy checks?

Do you scan those donation "door hangers" like from Goodwill, etc.?

Do you scan all those numerous notes the TP clips to their papers etc.?

[RitaB]

One copy of everything

I run a copy (or keep a copy when multiples are issued, like W-2's) of everything that impacts the return. I enter whatever they have on Sch A and run it for them, but if they are not close to itemizing, I don't keep a copy of that information. I document phone calls, too.

I have never understtod why some only keep copies of forms that went in to IRS, when those are the easiest to get. But that 12,987 "business miles" is what you better be sure you can cough up.

[Koss]

Scanning

We start by scanning the client's retina and thumbprint.



Just kidding.

If they bring a classic shoebox full of receipts, we don't scan every scrap of paper. But other than that, we scan virtually everything the client gives us.

BMK

[AZ-Tax]

If shoebox was brought in...

If they bring a classic shoebox full of receipts, we don't scan every scrap of paper. But other than that, we scan virtually everything the client gives us.BMK

If somebody brought in a shoebook, it better be new shoes for me with all the running I do from my desk to my refrigerator

[Uncle Sam]

Documents Copied

I copy EVERYTHING relevant to the tax return preparation the client provides me.
No return leaves my office until I've copied these documents and attached them to my copy of their return.
Not only do you need to have it available should the return be audited, or the client misplace them, but frequently I need to show the client what information he/she provided me the prior year when going over their information the next year and they can't recall whether it applies or not this year.
Or if the client gets a notice where you need to go back to the source document to respond.
I had a situation this tax season - where a client received a CP2000 notice claiming unreported income.
I went to last year's return and matched up the information, and IRS picked up information on a 1099-MISC that was duplicated. IRS computer picked up both the original AND the corrected amount.
Yes - it's time consuming and a lot of document copying - but proves to be a great help when needed.

[Burke]

It varies. I copy all the IRS documents, yes. But also copies of HUD-1's, the TP's lists of charitable items, last year's tax return on a new client, sometimes the mtge int statements, especially if they refi'd last yr, sometimes PP tax info depending on whether it is part-yr, etc, and anything I have a reason to question. Sometimes copies of pay stubs, if it has info like union dues/health ins not on the W-2. Copies of emails also go in the file.

[JG EA]

I also copy most everything - and one of the main reasons is what Uncle Sam said - to show things to my clients as to why we did this or that.

Here is something that happened this year. I also keep my current client's old returns for as long as they are my clients and 3+ years after. One of my clients this year sold an old stock. We thought the best we could do was go back and get all the reinvested dividends, but in my search for these divs I went back more than 2 decades and found a copy of the original buy slip!

[Burke]

And on some clients, I copy those papers (or pages of their 1099B if it shows purchases) for the same reason. I loved AG Edwards 1099's when they were in business. They always showed the purchases on them.

[ChEAr$]

I don't scan and keep anything.

I do however keep copies of W2s' and 1099r's or any other statement which shows federal/state withholding, since that's required by IRS and states.
If a W2 has no withholding on it, it goes in client's folder and everything else is his responsibility.

In fact before 1989 and efiling, I never kept w2's.

[Will]

I don't scan and keep anything.

I do however keep copies of W2s' and 1099r's or any other statement which shows federal/state withholding, since that's required by IRS and states.
If a W2 has no withholding on it, it goes in client's folder and everything else is his responsibility.

In fact before 1989 and efiling, I never kept w2's.

I must tell you that I'm amazed at these answers. Like Harlan, I keep copies of everything that has withholding, plus all W2's and 1099's whether they have withholding or not. I also will keep a record of things that I feel may be questioned, like business miles etc. But I certainly do not keep copies of everything the client gives me.

I use the information to prepare the return, mark it with a particular color checkmark (to show I've seen it) and then return everything to the client. I provide a pocket folder, staple the client copy of the return to it, and put all client documents in the pocket of the folder.

It is then the client's responsibility to keep his copy of the return with the information, which I will use when and if he calls me with a question or problem.

[joanmcq]

I'm with Will: I keep copies of whatever I used to prepare the return, although if a client puts a charitable list along with a bunch of low dollar reciepts, I'll just scan the list. I keep any pertinent emails, where the client has given me information, or I've informed them of a law or deduction. Some of this is to answer questions, or be able to look up the vehicle fees if they've lost the bill, or last year's property tax bill (we have bills that run fiscal years in CA). But a lot of it is also to CMA (cover MY @$$). This year with the CA property tax bills, if I don't have the actual bill, I'm looking up the direct levies and printing them out from the website. I can show the client EXACTLY what wasn't deductible.

for example, this morning I got an email asking how I got to the figures I used to deduct the HOA dues on the rentals, since they were different than what was on the spreadsheet she provided. I looked at the return, and in my bleary state couldn't remember how I got the wierd numbers I had in there. I looked in the file and saw I had picked up some prorated dues that were paid through escrow when they bought the condos. I couldn't remember until I looked in my file...and not only could I answer the question, but looked like a genius for finding a deduction my client didn't.

And yes, a copy of the HUD is scanned into her file.

[manyhappyreturns]

When clients bring in stacks of receipts paper-clipped together with the totals on adding machine tape or post-its stuck on top, I just write down the totals on a piece of paper that I keep in the file. I also do that with mileage figures and all other amounts they give me. Seems a lot less cumbersome and time-consuming than copying every single thing. It's the responsibility of the client to provide proof in the event of an audit, and I make sure they are aware of that. I figure my notes are sufficient evidence that this is what the client told me. I hope I'm not being too lax. I do keep (or make) copies of all the main income or deduction docs, but I'm just talking about all the little piles of receipts for medical or charitable or business expenses, and their mileage log (or lack thereof). I encourage my clients to made detailed lists, and I always photocopy those, because there's the evidence in their own handwriting, or generated in their own computer program. And if they actually fill in the blanks on the organizers I send them, I keep those in the file, too.

[luke]

harlan

Harlan you must have some Great clients - I'll bet 5 or 6 times a year I have to pull out "my copies" of client documents to prove a point! Yes it is extremely time consuming (AND costly) but I usually "win" those little client "skirmishes".....

[Possi]

Sorry I don't

I only keep copies of anything that has withholding on it, and I keep copies of business back up papers on the sole props. (I don't do corp)

I regret that decision now, though. I have more problem children than I care to deal with, and one of those is the IRS. I will find a good scanning program and learn how to separate the files by client, and use it beginning next tax season.

[RitaB]

This guy here

I am keeping a copy of THIS guy's 2010 property tax receipt that he thinks I am going to deduct this year. I am not. Like Luke, I have figured out that you do have skirmishes with clients along the way. I intend to win all of those.

Now, if a client has a stack of maintenance receipts on a rental, I just run a copy of the register tape stapled to the stack, not every receipt.