Legal Question in Civil Litigation in Minnesota

Re: Release of information

The tax preparer may not be able to hold on to your paperwork. If you have paid for services rendered, I do not, without more information, see why the tax preparer continues to hold onto the paperwork. I would possibly send a letter to the tax preparer demanding the paperwork. Sometimes a letter from an attorney makes someone spring into action. If you would like me to take a look at your issue and write a letter to the tax preparer, feel free to contact me.

Re: Release of information

AICPA Professional Standards, ET section 501, says holding back client records after they�re requested is an act discreditable to the profession. In most states, holding such records hostage for fees would be considered a violation of state board of accountancy rules, subject to a citation, a fine�or worse. From a loss-prevention standpoint, it�s usually unwise to add fuel to the fire by not cooperating with former clients� transition to another CPA.

Much of this issue�s risk exposure stems from confusion over what constitutes client records. According to ET section 501.01, client records are any accounting or other records belonging to the client and provided to the CPA by, or on behalf of, the client. If an engagement isn�t completed, the CPA is required to return all records provided, regardless of whether or not fees have been paid.