ItDepends wrote:
I want to be prepared for that "compliance audit" if it ever happens. ... Not sure of the frequency of 8879 compliance related audits.
I have not observed one in 16+ years. Does not mean they do not occur, but I think they are quite rare for tax preparers on the up-and-up.
The more you can do away with paper files, the better off you will be. We are in 2021, after all, and paper is simply too bulky and costly to deal with from all perspectives (except a book--I still much prefer a book printed on paper vs. reading a screen, though admittedly I am out of shelf space and have had to resort to eBooks). If I need to produce an 8879 from 2017, for example, I can find it in 15 seconds along with all supporting documentation used to prepare the tax return(s).
When a client provides me paper documents, first step is to scan everything and consolidate into a single PDF, and utilize TTC to annotate, link pages, sort, etc. Very useful add-on utility for Adobe Acrobat when you are an accountant/tax preparer. I never begin a tax return until all supporting documentation is scanned, and then I keep everything as paperless as possible from there forward. As missing information is identified and received, it is immediately inserted into the PDF working papers. If a client requests a printed copy of their tax returns, I do maintain the option to charge but since so few now request it, I topically do NOT charge unless it is a 400+ page set of tax returns, for example, that requires supplies and resources to assemble.
Keep this in mind: it is your business, and you ultimately choose who you work with. It is absolutely within your control of what you may dictate clients will and will not do. What I found is that as long as you ease into it, rather than making a number of sudden and significant changes clients must adhere to, is that they are receptive and realize the benefits. Generally by the time you identify who is anti-change, you are at a point where you can disengage from them to further your business objectives and practices.
