The one unvarying constant of Tax Court is variety: even long-established principles solve new problems. March saw a new look at Work Opportunity Tax Credit (WOTC) and the Empowerment Zone Employment Credit (EZEC) and a first look at the BBA reset of the partnership-partner relationship. Bitcoin, specifically hard-forked coins, are in view. The usual suspects like discovery jousts, SOL, and equitable tolling continue to show up. Take a look.
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.
