LibertyTax: is there software proprietary?

I asked a new client to ask former tax person which software they use and would they provide a copy of the appropriate file for conversion to UT.

Sounds like the LibertyTax franchise either uses proprietary or rebrands.

Would think most preparers would provide the files if avalable. I do.

Len Raphael, Oakland

I would not provide the files. I don't want other people to see my notes nor is it my intention to do the work for them.

I agree with Cathy. I just ask for a copy of their prior year return. If there is significant depreciation, I will contact the prior preparer (with the client's permission) and ask if they will provide a depreciation schedule as a professional courtesy.

I would be uncomfortable sharing the entire data file for conversion. I might make an exception for providing the fixed assets data only if the other firm uses the same software as I do, as there's no conversion to screw up.

I agree with Cathy and you are ONLY OBLIGATED BY LAW to provide a hard copy of the actual return you prepared and filed. Preparer notes are your property.

I was asked by an attorney not only to provide the data file, but also the software so that his "person" could see it. I told him to pound sand! or haul me before a judge and explain how he is going to demand copyrighted and propriety work. He settled for a paper copy after client consent!

I agree with Cathy. I just ask for a copy of their prior year return. If there is significant depreciation, I will contact the prior preparer (with the client's permission) and ask if they will provide a depreciation schedule as a professional courtesy.

I always include the detailed fixed assets listing with my client copy.

Cathy - I do, too. I think it is such an important part of the tax return and the client deserves to be able to see where the numbers come from. No mysteries here.

You folks are tough. Sure it's not required, but if the client left on good terms, why not (true, you need to be careful about those embedded notes). In practice, I've never been asked, but I volunteer to do it for clients who move out of the area or who become infirm and kids take over the tax return data function. Even volunteered for one who I screwed up on, no fault of theirs.

Back in the day, tax software vendors would proforma prior year paper returns for you. At least ProFx used to. UT does not.

And I've asked a few times for clients who outgrew their prior tax person, or moved to the area and wanted someone local. Only time didn't get the files was from a cpa who wouldn't even give the client the depreciation schedules in any form. I left two vm's and an email asking it be sent to the client I told the client to report the cpa to the state board but client said not worth the hassle.

It's not my job to do my replacement's job. Now it's so easy to remotely prepare a return, IMO, there is no reason for a client to get a new preparer if they move. I've had two clients more out of state last year and I made it a point to tell them that I can still handle their returns. This gives me four clients who moved to another state.

Cathy is right. If the business relationship is working, there is no reason you can't prepare the tax returns of a client who moves. I have over a dozen such clients mostly in FL, AZ, CO that are former MA resident for years. I just picked up one this year who will be moving to HI in the summer and wants me to still prepare her return.

Cathy is right. If the business relationship is working, there is no reason you can't prepare the tax returns of a client who moves. I have over a dozen such clients mostly in FL, AZ, CO that are former MA resident for years. I just picked up one this year who will be moving to HI in the summer and wants me to still prepare her return.

I have a client who moved to TX 15 years ago and I haven’t seen him since. We talk on the phone or email about once a year. I now prepare 2 of his friends returns (in TX). Never met them.

Then I’ve had clients move 30 miles and insist it can’t be done and find a new cpa. Ok.

You folks are tough. Sure it's not required, but if the client left on good terms, why not (true, you need to be careful about those embedded notes).

There's little to gain but potentially a lot to lose. I would not in any way, shape, or form give a file to another practitioner to be converted. There are simply too many areas where I could potentially be blamed for something that I had no fault with.

If I were able to take my software's depreciation file and send it to another practitioner who uses the same software, I would consider it.

Only twice have I ever given a file to the new accounting firm. It was thew same firm both times and they were taking over a complex return that I no longer wanted to do. There were many pages of fixed assets. We both used the same software so it should have been easy, but it was not. I needed help from tech support to send the files, and had to send them a couple of times. I'll never do it again.

For several years I have included a complete copy of depreciation schedules with all returns. The client receives everything they need to be able to go to a new accountant. That way, if I kick the bucket, they will not be cussing me out for leaving them in the lurch.

Thirty years ago I would tell clients who moved to find someone local to their new residence. Now I only say that to people I don't like.

Only twice have I ever given a file to the new accounting firm. It was thew same firm both times and they were taking over a complex return that I no longer wanted to do. There were many pages of fixed assets. We both used the same software so it should have been easy, but it was not. I needed help from tech support to send the files, and had to send them a couple of times. I'll never do it again.

For several years I have included a complete copy of depreciation schedules with all returns. The client receives everything they need to be able to go to a new accountant. That way, if I kick the bucket, they will not be cussing me out for leaving them in the lurch.

Thirty years ago I would tell clients who moved to find someone local to their new residence. Now I only say that to people I don't like.

Yep, that's another problem. You create the file and for some reason they claim they can't read it so now are you supposed to be the free tech support? Especially during tax season? No way.

Yep, that's another problem. You create the file and for some reason they claim they can't read it so now are you supposed to be the free tech support? Especially during tax season? No way.

You got that right!

If you want to shoot yourself in the foot go ahead give out your software files. You are trying to make it easy for the next guy at your own cost and peril

Which brings up another point about what workpapers to provide client with each year.

Not talking about the accounting society, legal, or state board rules but what's right to do. If you're a sole proprietor and you keel over with a heart attack, it's going to be a pita for your client's new accountant to defend them for a prior year. Maybe that's a good thing, maybe not.

And maybe your surviving significant other, has a much better chance of selling your practice if you haven't made it easy for clients to move on.

Not talking memos re exposure areas and decisions.

As long as you have given the taxpayer the documents required under the law you have done your job. My wife and sons were told by me to sell the business if one of them did not want to takeover.

After I am gone a new accountant can pull the transcripts!

Which brings up another point about what workpapers to provide client with each year.

I find the most productive answer to this question is determined via a conversation with the client. Do they want a copy of the depreciation schedule? I'm happy to provide whatever they want, but just printing out two or three extra reports with every delivered tax return is not valuable to most clients. I'm available all year round, if they have questions.

Alternatively, my software can provide depreciation reports in a variety of ways. If they do want the schedule, what format is best for them? How are they using it? How can I organize it in the most valuable format?

These are all value adding questions, which set the stage for you to be more than just a form preparer to your client.

I give them the standard depreciation report that my software spits out. If the taxpayer is coming back to me the next year it is of no consequence. If they go elsewhere I gave them what they need