USEFUL FORM FOR PRACTICE SELLERS/BUYERS

[kcjenkins]

Larry Hess created a useful form for the situation where you sell your practice, and part of it is that you want to transfer client files to the buyers.  Useful whether you are the seller or the buyer, this is a good CYA for both.  He created it using the language & requirements of Sec 7216 & related Regs. Here's what he  ended up with with the blessing of his attorney who is also a CPA:

CONSENT TO DISCLOSURE OF TAX RETURN INFORMATION

 
Federal law requires this consent form be provided to you. Without your consent, or
unless authorized by law, I cannot disclose your tax return information to third parties. I
would like your permission to transfer your file, including copies of your prior tax returns
and my workpapers, to [xxx]. They have agreed to keep your return information confidential in the same manner required of me, as your original return preparer.
 
You are not required to complete this form. I am not conditioning my services to you in
the future on your consent, as I do not intend to continue tax preparation services in the
future. Any services that I might provide to you are not conditioned on signing this
consent. If you agree to the disclosure of your tax return information, your consent is
valid for the amount of time that you specify. If you do not specify the duration, your
consent is valid until you withdraw it.
 
Purpose for forwarding information: To enable the successor to Lawrence H. Hess CPA
to prepare my/our income tax returns and provide me/us with tax planning services and
other tax advice.
 
Name and address to whom the information is being disclosed:  [yyy].
 
Duration of Consent: Until withdrawn, or until [xxx].
 
If you agree to permit me to transfer your tax return information to [yyy], please sign below and return this form to me. If you do not consent, please let me know and I will make available to you any information that you may need for the preparation of future tax returns.
 
Thank you for your cooperation
 
[xxx]
 
I/we, [client], consent and authorize [xxx] to disclose to [yyy] all tax return and other information in the files of [yyy].
 
Signatures & date
 

[michaelmars]

THIS has been required for a few years, to send a return to anyone like a bank or financial planner.

[kcjenkins]

No, this is not just approval to sent a copy of a form, it's to transfer your computer files to or from another preparer. And even your workpapers.  That is why it's worth keeping, IMHO.