Quickbooks and Tax Prep Software Files from Old Accountant

On behalf of a new client in New York, I contacted the predecessor accountant and asked them to send me the client's files, including any Quickbooks and tax prep software files. The previous accountant prepared several years of tax returns for the client. They sent copies of the tax returns and hardcopy printouts of QB reports, but did not send the software files. I called the accountant to ask about it, and they said that as a matter of company policy, they don't release Quickbooks files.

My understanding is that they are required to provide all the member-prepared records for the tax returns, including the QB and tax prep software files, if instructed to do so by the client. Am I wrong about that?

They are required to provide the information but can choose the form in which they provide it.

Does the client owe money?
Does the old accountant know how to provide the data files?

If it would save you time (and your client money) you can offer to compensate the old accountant for the data files.
There is no guarantee you use the same tax software, but the QB file might be useful.

I believe you are wrong about the data files.
If they provided the reports from QB and copies of the tax returns, I believe they have met their obligation.
The client can make a request for the QB file because the client presumably paid to have the bookkeeping done, but I think it would ultimately be up to the accountants discretion.

I would NOT as a matter of policy provide any backup or actual software data files. I remember being at a tax conference and the presenter warned against that because in the "wrong" hands the source data can be manipulated to your detriment! Instead always provide hard copies of the results or pdf files. You have complied with the law unless there is a court subpoena!

I think there may be a copyright issue if you provide those software data files to a non licensed entity?? Not sure about that but it does not matter.

I often get requests from other accountants who recognize my tax software from the hard copy and they want data files. No sir thanks!

Thanks for the responses. The accountant did end up providing the QB file, which is what I wanted most.

If the accountant CREATED and MAINTAINED the QB file, they do not have to release the actual data file--it is treated like working papers (I know from experience when we withheld software data files from a nasty client and they threatened us with a lawsuit--they lost and their own lawyer said they were not entitled to them). Same with tax software data files.

I do not ever release software data files/backups unless, for example, a client provided me a QBD file they originally input information into and then handed over to me. Otherwise, at best, they will get a printout of the general ledger.

I looked closely at the issue a few years ago. My conclusion was that perhaps we are required to provide depreciation detail, but that can be exported to Excel. Otherwise, absolutely I will not provide my data files.

I will provide the data file depending on the new accountant. If I like them, absolutely. Of the have screwed me over in the past, I won't.

Not a big deal really.