This will be an annual event allowing members to safely and securely dispose of unwanted or no longer needed records and client data.  The date for the 2013 Shred-A-Thon will be posted here once the event is scheduled.

Make points with your clients by allowing them to participate as well.  Let them know about the event and bring their old tax data to your office to combine with your shredding.  If they have other sensitive materials to shred make arrangements for them to participate in the shred day event.


Preparer Record Keeping Requirements - A tax return preparer must either retain a completed copy of each return or refund claim prepared or retain on a list the name, tax I.D. number, taxable year and make the copy and list available for inspection (Code Sec. 6107(b)).  Failure to do so subjects the preparer to a $50 penalty for each such failure, unless it is shown that the failure is due to reasonable cause and not due to willful neglect (Code Sec. 6695(d)).

Sec 7216 & Shredding Services – IRC §7216 is a criminal provision that prohibits preparers of tax returns from knowingly or recklessly disclosing or using tax return information.  It is a misdemeanor offense that is punishable by a fine of not more than $1,000, imprisonment of not more than one year, or both, plus costs of prosecution.  [Code § 7216(a) – Regulation § 301.7216-1(a)]   Thus disposing of tax returns and tax return documents and data must be accomplished without disclosing the information a third party without the consent of the taxpayer.

The use of a shredding service is permissible, provided that the tax preparer takes reasonable precautions to ensure the information is not compromised.  The SFVEA Shred-A-Thon employs the safest means of doing this by allowing preparer to witness the shredding of his or her documents. 

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