Disposition of Client file copies of Form 1040

[Edward]

What is the source document for this disposition. I thought that I had read at one time that "a current listing by name was sufficient and that would substitute for the actual copy of the tax return". I couldn't find any comment regarding this in the Tax Book. Thanks for any help.

[Jiggers]

Is this what you are looking for:


IRC 6695(d)
(d) Failure to retain copy or list
Any person who is a tax return preparer with respect to any return or claim for refund who fails to comply with section 6107 (b) with respect to such return or claim shall pay a penalty of $50 for each such failure, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. The maximum penalty imposed under this subsection on any person with respect to any return period shall not exceed $25,000.

[mastertaxguy]

"client files"

What is the source document for this disposition. I thought that I had read at one time that "a current listing by name was sufficient and that would substitute for the actual copy of the tax return". I couldn't find any comment regarding this in the Tax Book. Thanks for any help.

TTB, Pp. 15-2, right column, mentions IRC 6695(c), which requires a three year retention (which starts July 1 of each year) or a list of names and ID numbers for whom the returns were prepared.


From a professional liability standpoint, my own view is to keep a copy of the return as prepared with supporting documents/lists/information supplied by the taxpayer (client) for at least four years in electronic format (I scan everything and mark each client document or list to show I received and saw it/them).

[Edward]

Dispo of client file copies of form 1040

Thanks to both of you - that was exactly what I was looking for.

[taxea]

I keep all my client files on disk just in case of a 6 or 10 year issue