A client has skipped out on paying his bill and has abandoned all his old records at my office. How often do I need to attempt contact before I am ok to shred everything. It has been 2 years since I had any response from him.
I have sent emails and texts.
I had a client like that. I saved my many emails to him and his responses or non-responses. I even got a letter once from another accountant who said he would pickup his papers. I finally sent him an email saying that I would hold the information for 2 more months (and provided the date), at which time I would have his information shredded. I never heard from him but had it shredded. I’ve never heard from him since. Giving the “client” a reasonable period to reply and saving all emails/texts is the key. I think in total I stored this guy’s stuff for about three or four years.
Depends on the nature of the records, I’d think…personal tax stuff? Minimal time and out it goes. Business records? Longer, but only because there’s a higher liability to you for tossing 'em. But if you’ve made reasonable efforts (and can prove it) to contact or return them - even without being paid - you should be fine I’d think. Don’t believe there’s a hard-and-fast rule on this.
I have a retired family law lawyer as a client. When she retired, she contacted the Law Society of Upper Canada and asked how long she needs to keep client records. Her answer, obviously from a bunch of lawyers, was “as long as you think you’ll need them”. Proof that there is no real answer.
I assume there is a Statute of Limitations…think of a landlord whose tenant abandons the premises and leaves goods…and there are, of course, tax limitations. But gven that this instant case is “records”…who knows? (Probably a relief for the client to have not to deal with them ha ha!!)
The example she gave was of separated parents when the children were young. When older, one parent may go to court to have support changed. She said that the parent must supply an agreement with original signatures. That’s why she has to keep the documents.
Makes sense! Original wet signatures are still the Standard.
There’s no statute of limitations because tax preparation is not a regulated industry. CPAs have rules of professional conduct which would inform this, but non-CPAs don’t. My advice would be that no one should be giving advice on this question unless they have direct experience. Speaking to a lawyer is what I would do if it were a significant issue for me.
LOL. I think that ANYBODY who thinks that commentary on a public forum on a question posed is looking for professional and legally binding advice.
It’s a public forum. Comments are open for opinion and thoughts. Due Diligence is require for anyone. But it often isn’t a bad idea to seek “thoughts”.
When I ask a question and receive an answer I “may” act on it…and I “may not”. But I’m not suing you for your thoughts…..
Just one person’s approach.