files from a deceased tax preparer

[Kea]

A friend of mine called me tonight. Her mother passed away in 2006 and she had a small tax prep business. My friend is about to move out of that house and is trying to determine what to do with her mother's tax files. She doesn't want to keep them and was thinking about shredding them all. I suggested she might want to contact the former clients and see if they want their old files. She doesn't want to move the files and doesn't have time to call everyone this week before she moves.

She does still have the computer that has a handful of 2005 and 2006 files. Is it OK if she shreds the 2004 and earlier files? I'm not familiar with the file retention requirements after the tax preparer death.

Thanks so much.

[bay]

I would send a letter to the 1040 clients asking if they want there files and that they must respond within 30 or 60 days and that if you do not hear back from them, then their files will be shredded.

good luck

[JohnH]

Are you looking for business? Seems like handling this for her might be a good way to contact some prospective clients. Even if they went to someone else for 2007, they might still be looking for someone they can connect with. A personal connection to the prior preparer & having their files might be a good inroad.

Offering to handle the client communcation for her would be a good service and could potentially generate new business for you. If you're not interested in doing it, maybe you know a preparer in town who would.

[michaelmars]

if the daughter is the executrix she might have a duty to abide by the states mandates, here in ny it is to keep the files for 7 years. I agree that if she were to notify the clients of her intent to transfer them to you in 30 days unless they pick them up she will fulfill her duties and you will receive a windfall.

[joelgilb]

if the daughter is the executrix she might have a duty to abide by the states mandates, here in ny it is to keep the files for 7 years. I agree that if she were to notify the clients of her intent to transfer them to you in 30 days unless they pick them up she will fulfill her duties and you will receive a windfall.

Like what Mike says!

[Kea]

I did express all these ideas with my friend and she did like the idea of moving the files to me. We discussed writing a joint letter to connect her mother to me. I used to work with this friend in a past life and her mother got some of her clients through her daughter. So there is a good possibility that I may already know some of the clients.

My friend is planning to discuss this scenario with the estate lawyer to make sure it fulfills her legal obligations. I should hear back in a few days.

It's kinda embarrassing that I didn't think of this myself.