When selling your "client list" to another preparer, is it necessary to provide Form 7216?

Forum|Forum|4 years ago
September 28, 2021
2 replies
19 views

When selling and transferring tax client data to another qualified preparer, is it required to have all clients sign or provide a signed Form 7216?

Any assistance with this will be gratefully received.

At present I'm assuming this from NOT required if being used for the sole purpose of tax preparation.

Lacerte Tax

This topic has been closed for replies.

Best answer by George4Tacks

I agree with your assumption. You notify the clients of the change and they then have the option to do whatever they want.

I was involved in a mediation of the sale of a tax business. The mediator offered his opinion that the client list has no real value because neither party has any control of that "asset." l found that opinion to be very interesting. It did speed up the resolution of the process.

George4TacksAnswer

Level 15

I agree with your assumption. You notify the clients of the change and they then have the option to do whatever they want.

I was involved in a mediation of the sale of a tax business. The mediator offered his opinion that the client list has no real value because neither party has any control of that "asset." l found that opinion to be very interesting. It did speed up the resolution of the process.

Answers are easy. Questions are hard!

L

lovetaxesAuthor

Level 4

Hello George4Tacks,

You've provided me with several responses over the past few years. I've never found you to be off base and always right on target. You express your thoughts concisely and I can't thank you enough.

I used to call Lacerte's tech support but quite frankly I'm getting superior replies and faster responses than they can presently provide.

I'm so pleased that we're in agreement on this one.

Wish you were my next door neighbor!

Bob

T

TaxGuyBill

Level 15

@lovetaxes wrote:

transferring tax client data

I strongly suspect that the buyer would want a copy of the prior tax returns (and probably the computer files, notes and anything else). That would presumably require some signed disclosure.

L

lovetaxesAuthor

Level 4

Good afternoon TaxGuyBill,

I sincerely appreciate your taking the time to respond to my question re: Form 7216. The Community for Lacerte always replies quickly and I've never gotten bad replies.

Many thanks,

Bob

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