How long to keep clints records?

Paper copies - Never - PDF's I go back 11 years (95 tax year) and have my software and files available going back to

91 (the year I started business) and can reproduce every return I've ever repaired. With todays large hard disks why not - providing you've proper backup procedures. I've got my entire practice down to 5 drawers in a filing cabinet. I believe that according to Circ. E you are not even required to keep a copy - just a listing of which ones you've prepared - and I think that is 3 years.

Forever is a good starting point.

Per the IRS:

Section 6107 provides requirements for tax return preparers with respect to retaining copies of the returns or alternatively maintaining lists of returns prepared. Section

6107(b) provides as follows. Any person who is an income tax return preparer with respect to a return or claim for refund shall, for the period ending 3 years after the close of the return period-- 6107(b)(1) retain a completed copy of such return or claim, or retain, on a list, the name and taxpayer identification number of the taxpayer for whom such return or claim was prepared, and 6107(b)(2) make such copy or list available for inspection upon request by the Secretary. Per Section 6107(d) and 6060(c), the return period runs from July 1 through June 30. For a calendar year return due without extensions prior to June 30, a copy of the return or a list containing the appropriate information about the return must be kept until fourth June 30 falling after the end of the tax year in question. If the return in question is extended, and the extended due date falls after June 30, the return copy or list must maintained through the fifth June 30. End Quote***

I keep them for 7 years but maintain fixed asset records until assets are fully depreciated (or I die) for existing clients only.

There is no absolute requirement to do so. (Most people think so, however.) There IS a requirement to maintain records showing taxpayers' name(s) and social security numbers for a period of three years after due dates. Of course most preparers do keep copies of returns to satisfy this requirement and to help out with next year's interview. When I do print out page 2 of 1040 for my files I make sure to use a black Magic Marker (tm) on any bank account numbers. Just think if a thief stole in one night! ChEAr$, Harlan Lunsford, EA n LA