As the federal student loan system enters a new era, advisors are tasked with helping clients navigate the practical implications of recent reforms. The One Big Beautiful Bill Act (OBBBA) has redefined borrowing limits and repayment options, creating fresh challenges for borrowers at every stage of higher education. Whether clients are weighing school choices or managing existing student debt, understanding these updates is key to providing informed financial guidance. In Part 2 of our OBBBA student loan series, we explore how these changes could play out for common borrower situations and what advisors should be aware of to confidently guide clients through the post-OBBBA student loan landscape.
Assessment Statutes and Document Retention Best Practices
Amber Gray-Fenner, EA NTPI Fellow USTCP
When it comes to document retention, my guiding policy is “If I don’t keep it, it can’t be stolen or subpoenaed.” That sounds cynical, but there’s truth in it. The smaller your data “surface area,” the less you have to manage in the event of a data breach (or, if you hold paper documents, in the event of a fire or break in). And, if a client or former client gets really sideways in divorce or criminal court, being able to say “I have a policy in place and I don’t keep records longer than three years” can provide you with a measure of peace. But what should your policy be? It depends, but relevant assessment statutes are a good place to start. This article reviews the IRS rules for assessing tax and provides some best practices for developing document retention policies for return preparation documents in your practice.
