Client Workpapers

While looking for something else, came across this on the Texas State Board of Public Accountancy website. This topic (what has to be given to a client) has been discussed a lot on here and TaxAlmanac. While this is for Texas CPAs, probably all states have similar rules. This is from the section dealing with records & workpapers. Interesting what gets classified as "client records" that a lot of folks call "their workpapers". From the Texas Board Rules Sec 501.76(a)(2):

(2) A person's work papers, to the extent that such work papers include records which would ordinarily constitute part of the client's or former client's books and records and are not otherwise available to the client or former client, shall also be furnished to the client within a reasonable time (promptly, not to exceed 20 business days) after the client has made a request for those records. The person can charge a reasonable fee for providing such work papers. Such work papers shall be in a format that the client or former client can reasonably expect to use for the purpose of accessing such work papers. Work papers which constitute client records include, but are not limited to:
(A) documents in lieu of books of original entry such as listings and distributions of cash receipts or cash disbursements;
(B) documents in lieu of general ledger or subsidiary ledgers, such as accounts receivable, job cost and equipment ledgers, or similar depreciation records;
(C) all adjusting and closing journal entries and supporting details when the supporting details are not fully set forth in the explanation of the journal entry; and
(D) consolidating or combining journal entries and documents and supporting detail in arriving at final figures incorporated in an end product such as financial statements or tax returns.

Work papers, regardless of format, are those documents developed by the person incident to the performance of his engagement which do NOT constitute "records that must be returned to the client" in accordance with subsection (a) of this section. (formatting added).

Also From the Texas State Board Q&A:
If the CPA previously issued a document to a client, such as a client's tax return or an attest report, the CPA must provide additional copies to the client upon the client's request. The CPA can charge a reasonable fee for providing those copies.

I think the discussion was about giving a copy of the tax return to the wife when the preparer had worked with the husband. However, if it was a joint return, don't see how the preparer could argue that the wife was not also a client.

I agree with you 100%. And my conclusion in that other post was that the CPA firm could likely be sanctioned for failing to give the wife a copy. I'm glad you looked it up.

One other interesting part to these rules:
(d) This rule imposes no obligation on the person who provides services to a business entity to provide documents to anyone involved with the entity except the authorized representative of the entity. (formatting added)

This might answer the question when another partner (who was not the one who dealt with the preparer) wanted copies of K-1. The one who dealt with the preparer is presumably the TMP (=authorized representative)? Or is something definitive required before that can be asserted?

Boy, you're on a roll tonight!

Yes, it does answer that K1 question. My feeling on that was: Screw the guy that didn't pay, but who wants his K1. We dealt with the entity representative and turned over the work product. Moreover, the "thing" in question was the bad guy's K1, not the actual tax return for the partnership.

But the label "TMP" is just a tax designation for dealing with the IRS. It has no bearing on the relationship with anyone else (like the preparer).

Or is something definitive required before that can be asserted?

I think is one of the partners steps forth and acts like he's authorized, he can bind the partnership.