Records Retention - Practice Sale

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#1
Taxctfl  
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Does anyone know the records retention requirements of a CPA's workpaper products in a CPA firm practice dissolution and asset sale? The facts:

No Audits, only compilations and tax returns
State of Florida
We never keep client's records, only work papers
Not all clients were sold - one client will be transitioned elsewhere and then the original firm will dissolve.

What if a client included in the asset sale decides not to transition in the sale - is the purchasing firm required to retain the workpapers or the seller?

Thanks.
 

#2
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Absolutely no experience or knowledge in this area but... can you just send the paper file to that client, and make it their problem?
 

#3
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I would contact your state's CPA society or regulatory board to clarify these items. Seems like something to ensure you are NOT on the wrong side of.
~Captcook
 

#4
Taxctfl  
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CaptCook wrote:I would contact your state's CPA society or regulatory board to clarify these items. Seems like something to ensure you are NOT on the wrong side of.


Agree and done. Assuming I need to keep anything with open statute.
 

#5
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Contact your Board of Accountancy or comparable in your state and find out. Try to either get it in writing or have them point to state law based on what applies.
 

#6
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Curious on the details of the practice sale if you feel like sharing.

Why did you sell? Moving? downsizing? Too big? Change of specialty?
How did you determine who to sell?
How hard was it to find a buyer?
Did you get dollar for dollar on the sale?
Any retention clause in place?
 

#7
Taxctfl  
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AICPA directed me to the FICPA who directed me to my professional liability carrier and to Google. OOF! According to the FICPA there is no specific document or requirement in the Public Accountancy statute.
 

#8
Taxctfl  
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ReckedCPAEA wrote:Curious on the details of the practice sale if you feel like sharing.

Why did you sell? Moving? downsizing? Too big? Change of specialty?
How did you determine who to sell?
How hard was it to find a buyer?
Did you get dollar for dollar on the sale?
Any retention clause in place?


DM ME!
 


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