.
As a general rule I do not keep a photocopy of all of my clients' Forms W-2s with my file copy of a finished return. I have enough paper to file without adding another sheet or two to each return.
.
There are occasions where I do photocopy the W-2s, and I seem to be doing so more and more each year.
.
I now have a copy machine that allows me to print a 2-sided copy of a 2-sided original - so I will drastically reduce my paper consumption. I have decided that, beginning with 2009 returns, I will make and keep a copy of all Form W-2s, and probably all Form 1099-MISCs for nonemployee compensation, for all clients.
.
I am constantly getting requests during the "normal" year for copies of W-2s that are needed for mortgage applications, or college financial aid applications, or for a variety of reasons. While I do return all original Copy Cs of client W-2s in the finished return package, and many clients also receive 2 copies of Form W-2 Copy 2 (for state returns), it seems that W-2s apparently and mysteriously disappear - like one sock from a pair in the washer or dryer.
.
Just this morning I had to fax a copy of a dependent child's 2008 Form W-2 to a college financial aid office. The dependent had 2 Form W-2s for 2008 (2 jobs), but the mother could only find one of them.
.
So fellow tax practitioners - a word to the wise. Make and keep a photocopy of Copy B of all Form W-2s for all of your clients. I expect your clients assume you already do.
.
FYI, in my annual January client letter I tell them to make sure to make and keep photocopies of all Form W-2s they are sending me, so they do not have to bother me during the tax filing season and ask me to mail or fax a copy to them or a third party.
.
Obviously all clients do not do this, and I invariably get a few requests for copies of W-2s that are in a "to be done" or "need more information" file in my office. I always do waste my time sending out the requested W-2, but I also remind the offending client of what I said, and highlighted, in my January letter.
.
TAFN
7 comments:
How about considering to begin efiling returns? That's what our firm has been doing since the last decade.
Therefore, since copy B (Federal filing copy) is not filed with a paper return, we keep that copy in our files.
Joseph-
I will gladly electronically submit federal income tax returns for clients when it is free to do so via IRS website without having to buy expensive software and go through invasive ERO registration process - similar to the way I can submit NJ returns electronically via NJWebFile.
See my post "Don't Fall In To The Gap" this coming Monday (7/13).
TWTP
Joseph -
Oops!
The Monday post to which I refer you will be at THE WANDERING TAX PRO, my other tax blog, at - http://wanderingtaxpro.blogspot.com.
TWTP
Have you written anything comparing the advantages/disadvantages of using tax software vs. doing the returns manually? I cannot imagine running a tax practice without tax prep software. Just the time savings, error-checking, and computer review features would appear to more than offset the cost of the software.
Joseph-
I have written the following post at TWTP - http://wanderingtaxpro.blogspot.com/2008/09/last-of-dinosaurs.html.
I cannot see any time savings, at least not for me, and "error-checking" and "computer-review" does not by any means relieve one of the responsibility of thoroughly checking the finished return - just as carefully as one would check a manual return.
I have seen too many stupid and unnecessary errors on software generated returns because they were not properly checked.
Besides, computer generated returns spit out twice as many sheets of paper - most of which waste of ink and trees.
I personally do not see any benefit to going to a "box".
TWTP
Sent in funds electronically for client on June 15th, 2009, last day of NJ Amnesty. Funds were for Year 2007. (money owed for deductions taken) Client does not want to file any amendments. Had filed return on time. Is it necessary to file an amendment for 2007?
Hey, landed on your blog, nice stuff. I found a cool new tool for our blogs... www.itsolusenz.com It helps get latest news for our keywords directly on to our blog. I added it on mine. Worked like a charm.
Post a Comment