Non-Tax Question

[rwm221]

I have clients that I have prepared taxes for but have not returned to sign and pay for their taxes. Obviously, I have not filed their returns. I have reached out to them with emails, text, and phone calls indicating that if they are not going to file their return they have to come back and pick up their w2's and other documents. If they do not return how long do I have to hold on to their w2's and other documents since they did not file their return with me?

Thanks

[spanel]

Indefinitely? If your not hard up for room, they will return at some point return. Also, do NOT throw it away. If you do decide to part ways with the client in a year or two, them certified mail the tax documents back to the last known address.

Chris

[Rapid Robert]

Ideally you make copies (scans) of all client-provided documents up front and then return the paper to them right away, so that this issue never arises.

When you decide not to wait any longer, you should send a written dis-engagement letter stating you will not be preparing the return, what you have done so far, and what the taxpayer needs to do to meet their legal filing and payment requirements. Not doing this leaves you much more open to unpleasant future actions by the client.

Once having decided to dis-engage, there is no way I would wait any time at all to return the docs, I would immediately mail them back USPS Priority mail with tracking (or certified mail if you prefer). This is essentially what H&R Block does at the end of each filing season, you do not want to be responsible for holding on to these docs, too many unexpected things can happen the longer you keep them.