Transition to new tax preparer - source docs only?

[connors]

One of our clients is moving to a different preparer and I'm wondering what information to transfer to the new preparer for the prior year return. The client wants the source documents and a copy of the tax return but I am wondering if it's general practice to send all calculations and summaries as well.

[ChEAr$]

If by source documents

One of our clients is moving to a different preparer and I'm wondering what information to transfer to the new preparer for the prior year return. The client wants the source documents and a copy of the tax return but I am wondering if it's general practice to send all calculations and summaries as well.

you mean documents that former client brought to you and you just retained in files as a convenience, then these belong to him, and you should give those back to HIM; not the new preparer! (privacy rules and all that.)

As for a copy of tax returns, surely client must have those, right? RIGHT? (grin)

But working papers remain our property.

Remember however that if client want new preparer to come by to pick up documents, then
he must provide new preparer with a signed POA to cover you.

[thomtax]

The client, supposedly, should already have a copy of the return. I would think he should provide that to them if he does have it.

There have been many posts about this and you might use the search feature on this board to find them. My practice is to provide, if requested, and I did not return the originals to the client with the return, to provide the source documents to the requester. This may not be the completely correct procedure, I don't know, but I am not inclined to provide my research, etc.

LT

[connors]

thanks for the advice. I'll search the message boards for more info.

[taxxcpa]

Give him what he needs

I would give the client whatever he needs unless he wants workpapers, etc. that will take a lot of time or expense to provide. At a minimum I would give him a copy of his tax return if he does not have a copy. Also I wouild provide depreciation schedules.

[oceanlovin'ea]

Depreciation schedules

That was my thought. I would give them the depreciation schedules for anything that was being depreciated.
My notes are my notes. I don't think I would give them to someone else.

Linda F

[S T]

Usually

Almost always, the taxpayer's copy contains depreciation schedules. I don't like trying to obtain them from prior tax preparers, and if my taxpayer decides not to use my services, they should have those forms.

Source documents, I feel the taxpayer can provide those to the new tax preparer, if they are copies of escrow statements, lease agreements, purchase contracts, etc. I do copy them for my records, but I always give the originals back to the Taxpayer, all neatly tucked into that years tax records along with the taxpayers copy of that years return.

My working papers and notes, are my file copies for CYA.

If taxpayer provides a release, then I would be happy to email the prior year return to the new tax preparer at no charge. If paper copy and I have to mail, I would probably charge, as the taxpayer could provide the same information. Case by case basis. Some taxpayer's are just too lazy to look up and find their own records and expect us to provide the information.


Sandy

[zeros]

Client Copy

Ever wonder where client files his copy of the return?........

[John of PA]

Give them what they want

I have always just given the client and/or new preparer whatever they want, it makes for a smoother transition (except, of course billing records, or scratch notes that I cannot even read).

[JohnH]

Where the client files his copies

Most clients file their copies of their tax returns in a special space that they cannot locate once 3 days have elapsed from the time they receive their refund.

That special space is only accessible:

1) Two days after they have requested & received a free duplicate copy from the tax preparer;

or

2) Within 20 minutes after being informed there will be a charge for providing them with a duplicate copy.

[jeff501]

If a client called needing a copy of their return I used to print it right away for them to pick up later in my office. I've found during the years oftentimes they find their copy at home or never come in to the office. Now I wait until (if) they show up and print it then.

We make copies of their documents (W-2s, 1098 forms, etc.) and give originals back at time of service. But we never give out our work papers or release information to any third party without a POA.

[Matt Sova]

Documents

I give the client or the new preparer whatever they ask for, even copies of the returns if there is no outstanding bill. Why? Common courtesy.

How many times have you picked up a new client and the prior accountant makes getting information like pulling teeth? You then tell the client what a lousy sob that prior accountant is and they hate you even more.

What will this new accountant do when you get one of their clients? What goes around comes around. We will all lose clients and we will all gain clients and if we treat each other like garbage no one wins.

I have actually had clients come back to me years after they left. Part of it due to how I handled the situation when they left me in the first place.

Matt

[ChEAr$]

simple

Ever wonder where client files his copy of the return?........

Quite a few of mine seem to file them behind the front seat of their pickup truck!

[erchess]

We seem to be agreed on a number of points.

1. To give anything to anyone but the taxpayer we need a signed poa. Would this be the IRS POA form or something we can write up or something a lawyer must write?

2. We have to give them anything they gave us such as copies of Forms W2, 1099, bank statements or the proverbial piece of paper with numbers scrawled. I personally always retain copies of this stuff.

3. We have to give them copies of the tax forms whether filed or properly not filed.

4. It seems that we don't have to give them work product. I clearly agree that if we made any notes on reading TTB or the regs or the code or whatever we don't have to give those up. What about say an IRS worksheet that we got out of an IRS Pub or a worksheet from TTB or a complex calculation or series of calculations you made? What kinds of work product to people on this site normally keep? I personally shred everything unless I know of a law requiring me to keep it. I do this because I don't want to be compelled at some point to produce it as evidence against myself or my client.

[Fuzzy Faced Leader]

If you've prepared workpapers with complex calculations, the workpaper should be given to the taxpayer, with the filed return. This shows him why you are charging a larger fee. If you gave taxpayer a copy then, you should send the new preparer the same workpapers.