Where to save prior year 8879s

[Lion EA]

I'm filing a few 2011 and 2012 trusts and individual returns now.  Would you file the prior year Forms 8879 with current year (either paper or electronic) because that's when it's filed, or with the 2011 and 2012 forms because that's the year they pertain to?

 

I'm especially concerned about paper documents.  If I file them with the appropriate prior year, then when I eventually shred documents from that year it'll be too soon for the late filers.

 

What do you do?

[Jack from Ohio]

Save all as .pdf. Issue solved.

IRS says we have to keep them 7 years. That is far beyond the statue of limitations for any actions by the IRS. I would save them based on the tax year of the return. No confusion if you go to look for them.

[jklcpa]

Save all as .pdf. Issue solved.

IRS says we have to keep them 7 years. That is far beyond the statue of limitations for any actions by the IRS. I would save them based on the tax year of the return. No confusion if you go to look for them.

 

 

IRS says we must keep the 8879s for a period of 3 years from the due date of the return or the date the return was received by the IRS, whichever is later.

 

I am keeping the 8879 in electronic format with the return for that year. I haven't had any late filers recently, but when I was keeping a paper file of the signature forms, I kept copies of the signature forms with each of the returns and also copies of all the signed forms in one folder that was for all the returns filed during that year.

[ADGFINANCIAL]

We  keep records for 5 years in plastic tubs in records storage off site and also in electronic format on flash drives in a fire proof lock box .  We use to keep just electronic format on our computer and had a total computer failure and lost everything.  We were backing up to a data storage site in Utah and found out that was a waste of time.  They provided no assistance in getting our data back.  Lost everything.  Our system now seems to work for us.

[Lion EA]

I still have 8879s both on paper and electronically.  So far, my electronic files go Clients, Name, Year.  So keeping the 8879s in either the year of the return or the year filed would not make them hard to find in my electronic file.  (And, yes, on desktop and an external drive offsite and a flash drive onsite.)  Finding paper, until I stop using it, would be a bit more shuffling to check my file still labeled DCNs for the year of the return and looking forward until finding it in the year actually efiled (or moving backwards from now until I locate the year filed).  I don't have a lot of clients, so either method would not take me much time to track down that piece of paper.  Just wondered what all of you do.  Mostly worried for when I start shredding older folders and have to check when returns were actually efiled.  But, as long as I don't shred anything that isn't also scanned/saved electronically, I'll have everything someplace (a few places).

 

I learned at Block where we filed 8879s by DCN.  So, we had to locate the return, hope we could read the DCN handwritten on it, and then find that number in the DCN file to locate the 8879 with W-2s and other withholding.  It was more or less chronological, but still a big pain.  Now I file alphabetically, so much easier.

[easytax]

Small practice as I am rebuilding.

All forms and documents are scanned (8879 both - when sent and when returned) and electronically filed with clients documents, work papers and final returns, etc.. For the years when extensions and other filings crossed years -- simple put an electronic copy of all into that perspective year.

So much more room, ease of use, etc. --- after initial scan procedure and process implemented (done over several years so as NOT to have to redo before the change (when paper was king).

Yes, on-sight and off site as there are only two types of people using computers today ------- those that have had and will again have a hard drive failure and those that are awaiting a hard drive failure.

[Gail in Virginia]

My electronic copies of signed 8879s are organized by the client, then by the year they are for.  My paper copies are stored alphabetically by the year in which they were actually filed regardless of the year they relate to.  That way I can burn a whole group at at a time without concern that some of them may not have been held for three years from the date of filing.  But even if something gets misfiled, I should still have my electronic copies.

[Lion EA]

Thank you, all.