Old Files

[MargaretMort]

I have finally decided to clear out the boxes and boxes of old tax files. My question--How many years do we need to hold files of customers we no longer have?

Thanks in advance. MM

[Lion EA]

From memory, three years after we filed their last return, amendment, whatever. And, we don't have to keep returns, just a list of clients with certain information.

[michaelmars]

From memory, three years after we filed their last return, amendment, whatever. And, we don't have to keep returns, just a list of clients with certain information.

WATCH your state rules, for example here in NY its seven years.

[MargaretMort]

As Florida doesn't have state income tax, I would have to assume there are no regulations? MM

[mcb39]

As Florida doesn't have state income tax, I would have to assume there are no regulations? MM

Margaret, you brought up a good question and a good reminder to those of us who like to save everything. If I even go back seven years, I will be creating a lot of extra space in my basement. Thanks for the prod.

[ILLMAS]

I am thinking of scanning my files and saving them on the computer and shredding the paper returns onced scanned, does anybody know if this is acceptable or a hard copy is always required?

Thanks

MAS

[Lion EA]

No hard copy is ever required, just the appropriate list. Paper or electronic is accepted, right?

[OldJack]

No hard copy is ever required, just the appropriate list.

So what do you tell your client when they call you wanting copies of the last 3 years tax returns to give to the bank for a loan?

[Lion EA]

I upload their return to my portal/email them a .pdf of their return or print out a copy for them to pick up.

[Catherine]

I upload their return to my portal/email them a .pdf of their return or print out a copy for them to pick up.

And charge them for it, too, as they were given paper (and, in my case, pdf on CD) copies when they originally filed. I've decided no more free copies. Funny how they suddenly "find" them when they know I won't print and mail for free.

[TAXBILLY]

I charge $25 per copy. It's always the same clients who are too lazy to pull out their return and bring it to the refiance people to have a copy made. They would rather just call me to fax it or e-mail it which I do when I get their check. It's always "but I need it today because I won't get the lower rate" ... Yeah, and you just found out you were refinancing today. Too bad, it'll have to wait a day since I know you will put that check in the mail to me today.

taxbilly