Filing "DCNs"

[Lion EA]

I worked for Block for many years; we filed Forms 8879 with the W-2s attached, etc., by DCN number. When I started my own business, I followed that filing procedure. Now with MeF, there are no DCN or other identifying numbers on Forms 8879. Do you file them alphabetically? Chronologically? By submission number (which is different for Federal and CT)?

And, I have two EIC clients this year. Where do you keep those forms? In their own folder for the year? With Forms 8879?

I don't believe I should store them in client folders, because these forms are not actually my company's or clients'. They really belong to the IRS who requires me to store them on their behalf for specific amounts of time.

[Maribeth]

I have a huge binder. I file all the 8879's in the binder alphabetically. Keep that binder for 3 years until 10/15, then shred the 8879's and use the binder for the following year.

Any other documents/workpapers/etc are kept in the client file.

Maribeth

[LisaAnn]

I store my 8879's alphabetically in a 3-ring binder.

I once heard from an instructor at an NATP seminar that if the IRS comes to audit 8879's you just give them the binder; that way you're not opening up every tax return for examination.

[Lion EA]

I definitely want them all together in a binder or folder. I started this year with alphabetical, but thought I'd better ask before my folder gets any thicker. Thanx!

[Lynn EA USTCP in Louisiana]

I have 4 years of 3 or 4 inch binders. At first I filed them by DCN number, but for the 2011 returns (filed in 2012) and going forward they are all being filed alphabetically. I have them separated by form type, 1040's, 1120 and 1120S, 1065, 1041, etc.

[Lion EA]

Good idea, Lynn.

[NECPA in NEBRASKA]

I file mine in an accordion file alphabetically each year after I scan them and put them in a separate folder by year on my computer.