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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