Thanks Dick for the response.  I have already made it clear that the
individual should consult with their accounting group who prepared the
documents for their input on retention and to determine if there is a legal
reason for retaining for a long period of time.  In addition, I also made it
clear that they should have their legal department review for their input
and approval for whatever they decide.

I had mentioned that I have the legal citations from the CFR on the
retention requirements and the IRS recordkeeping document that also outlines
in a table the retention requirements.

Unfortunately, some of retention requirements published by accounting
firms/legal firms as "best practices" have retentions of 10 years to
permanent.  But, they don't cite the legal citations for their retention
decision.

I recognize the fraud portion of the IRS retention that would make the start
of the retention period before destruction as the date the case was
resolved, then end of period for statue of limitations (Date resolved plus 6
years).

I was really hoping there was someone out there who worked in a CPA or Legal
Office that had a legal citation for longer retention of an individuals tax
return.

I evidently didn't make my request clear and I apologize.

Thanks you for your feedback...


Bob Dalton, CRM
Dalton Consulting
1-253-229-4555
[log in to unmask]


-----Original Message-----
From: Records Management Program [mailto:[log in to unmask]] On Behalf
Of Richard G. King, Jr.
Sent: Friday, November 03, 2006 10:02 AM
To: [log in to unmask]
Subject: Re: [RM] Tax Records Question

bobd wrote:

>An individual, not a client, not on the list, asked me how long an
>accounting firm is obligated to retain tax records prepared for clients.
>  
>
Bob,
Could be a tricky questions.  They should consult a tax atttorney in my 
opinion.  The problem arises in my mind with the fact that the IRS can 
claim fraud at any time and if you don't have the records they can 
assess taxes, interest and penalties.  It seems that in turn a client 
could turn around and sue the preparer claiming they submitted incorrect 
information to achieve a higher return for the client and therefore a 
higher fee for themselves.  Might depend on whether the preparer keeps a 
copy of the input data that led to the numbers submitted.  Anyway, it 
sounds tricky to me and I'd seek a professional opion just for comfort 
level.  Dick King, University of Arizona

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