What Goes in a Client’s Permanent File?

Ed Mendlowitz CPA The Practice Doctor Q and AWe’ve found at least 50 items. What would you add?

By Ed Mendlowitz
The CPA Trendlines Practice Doctor

QUESTION: What type of information should be kept in, or as, permanent files?

RESPONSE: A permanent file should be maintained for each of your clients. This would include the following:

  1. Engagement letters
  2. Representation letters – I would keep these in the permanent file. An example is that a claim could be made after you no longer have the work paper file associated with the matter. This is especially so with estate planning consultations where a claim could arise many years after a gift tax return was filed. I would keep copies of Crummey letters in the file for the gift tax returns, if it is your practice to obtain copies of such letters