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This discussion focuses on the rules/requirements for releasing client info. Let's talk about the pragmatic side. We always provide depreciation schedules when a client or new preparer asks What is the point of withholding them? The client has already chosen a new preparer and they're not going to change their mind and stick with you because you won't release their data. It costs you little or nothing to print and fax the schedules, so just do it. Maybe the client moved and wants to use someone local, but they'll have a good word for you to people they still know in the area if you're not uncooperative. Or maybe the new preparer will not be a good match and they'll come back. (We just had a client return after 2 years away.) Or maybe the new preparer charges twice what you do so they'll definitely be back. Don't burn bridges if there's no real reason to. Sound like this client's old CPA just doesn't get it. Ever notice how CPAs seem to be more competitive and unfriendly with one another than EAs and other tax professionals? Maybe it comes from their training. In my Masters in Taxation program one professor said he liked teaching tax people more than MBA students because we were eager to help one another whereas the MBAs hated each other. Something to think about.

I agree with you 100% Rita. Also, since I am a one man operation, it is important that my clients have the information if anything should happen to me.

For my clients with no email, I email the receipt to me and print it out for them. Email usually shows up instantly.

Agree! I always attach the depreciation schedule to the client copy of the return. Some might say, "Don't do that, you want the client to have a reason to contact you if they are leaving," presumably so you can persuade them to stay. Ain't nobody got time for that. Don't bust somebody's chops in an effort to make them stay or punish them for leaving. The Golden Rule is still classy.

Although in many/most cases the depreciation schedules are prepared and maintained by the practitioner, they are considered to be part of the schedules that make the client's books and records complete, and are necessary to fulfill current or future tax obligations. Depreciation schedules are considered client records and not providing it would fall under Sec 501 as an act discreditable to the profession to hostage records. Even if this CPA is not a member of the AICPA, he or she is still held to the state standards and those of Circ 230 and state revenue depts. My state society actually uses the AICPA standards and rules so that even if not a member of the AICPA in this state, we must still abide by the AICPA rules. The rule you are looking for is Circ 230, sec 10.28 (b ). Here's an article from the AICPA's publication, The Tax Advisor, from Aug 2014 that covers your issue. http://www.aicpa.org/Publications/TaxAdviser/2014/august/Pages/TPR_Aug14.aspx Here's another good summary by the Pennsylvania Institute of CPAs: http://www.picpa.org/Content/cpajournal/2006/summer/8.aspx ETA (again): I see you are in NY. If this CPA is also in NY, here is part of the NY code of professional conduct that says the same thing, that the deprec schedules are part of the client records, and that they must be given to the client: http://www.nysscpa.org/prof_library/ethics/Rules/codeother.htm

I wouldn't prepare a cup of coffee for Intuit. As to unknown clients. I have several clients that I have not seen in years. Therefore, that is not the reasoning behind my not preparing for Intuit.

Totally agree with Rita. By the time the 'new' preparer or the client asks, their decision has been made. All you can do, assuming you wish you could retain them, is keep the road back to you smooth and open. And if you don't want them back, why delay tying up loose ends? So be nice, be helpful, and be professional.

Three options 1. Endorse the check as the corporation and deposit it in the personal account as a third party check. 2. Cash the check at the bank the check is drawn on. 3. Contact the insurer, explain the situation and request a check be issued to the individual

Wouldn't it be unethical to ask the parents about son's income? It appears as though this potential client is an adult. I would never ask the parent of an adult client about the adult child's financial matters without that parent having durable power of attorney. For the record, I would decline to accept this client. I can be objective and perform due diligence but I do not do EIC returns without a prior longstanding client relationship and that happened exactly once in 15 years. My business is in my home though mostly electronic and I only take referrals and do not accept all of those. I do not typically document my reasons.

Mircpa, not only will you have a problem moving the real estate out of the corporation without triggering gain as I'd already mentioned, you also will trigger gain recognition because of the related party rules that will negate any benefit derived from the 1031 exchange if you move the property from the S corp to another related entity within 2 years of the exchange date if the same owner of the current S corp also owns more than 50% of the new entity. That would include other S corps, C corps, partnerships, LLCs, etc.

Hmm, this termination of the S corp and transfer to the LLC will trigger gain recognition from the distribution of the real estate at FMV.

Jack from Ohio, there are business expenses and personal expenses. You may be referring to my whine about missing a bit more of the price reduction on ATX MAX while spending quite a bit more on the Surface Pro 2. The software is a business expense and an annual one on a declining client base. The second is an upper grade 'toy' expected to last at least as long as my now dead 6-7 year old laptop and it is far more versatile than the business software or that old laptop. My husband also uses it as it is personal with minimal outside (no deduction) business use. My dive trips to quite exotic places are comparatively very costly but I buy most of my clothes from KMart and such places. I value experiences more than most stuff but the Surface Pro gives me wonderful experiences not possible with the tax software. And the lower my business expenses, the more money I have for fun stuff and experiences! Said earlier, your mileage may vary.