Purchaing a book of business

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#1
Posts:
15
Joined:
22-Apr-2014 9:55am
Location:
Houston
Hi all -

I am in the process of currently buying out a gentlemen who is going to retire. He mentioned that he wants to get a IRS form 7216 signed for every client before he releases all of the prior year's tax returns. I have bought out two other practices and have never done this. Does anybody have any legal citations where we don't have to do this? 26 CFR § 301.7216-2 doesn't say much about somebody buying out the firm...is there another code section I should be looking at?

Thanks in advance for your help
 

#2
ATSMAN  
Posts:
2094
Joined:
31-May-2014 8:34pm
Location:
MA
I have purchased tax practice/book of business before and we never dealt with that particular form. However our letter to the client's did state that they are authorizing us to transfer their tax records and if they have any option to contact the seller immediately. No one objected. We did get many calls regarding fees, servicing procedures etc. but not a single taxpayer said don't transfer my tax records.
 


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