10.28—Return of client's records.
(a)
In general, a practitioner must, at the
request of a client, promptly return any and all
records of the client that are necessary for the
client to comply with his or her Federal tax
obligations. The practitioner may retain copies of
the records returned to a client. The existence of
a dispute over fees generally does not relieve the
practitioner of his or her responsibility under
this section. Nevertheless, if applicable state
law allows or permits the retention of a client's
records by a practitioner in the case of a dispute
over fees for services rendered, the practitioner
need only return those records that must be
attached to the taxpayer's return. The
practitioner, however, must provide the client
with reasonable access to review and copy any
additional records of the client retained by the
practitioner under state law that are necessary
for the client to comply with his or her Federal
tax obligations.
(b)
For purposes of this section, Records of the client include all documents
or written or electronic materials provided to the
practitioner, or obtained by the practitioner in
the course of the practitioner's representation of
the client, that preexisted the retention of the
practitioner by the client. The term also includes
materials that were prepared by the client or a
third party (not including an employee or agent of
the practitioner) at any time and provided to the
practitioner with respect to the subject matter of
the representation. The term also includes any
return, claim for refund, schedule, affidavit,
appraisal or any other document prepared by the
practitioner, or his or her employee or agent,
that was presented to the client with respect to a
prior representation if such document is necessary
for the taxpayer to comply with his or her current
Federal tax obligations. The term does not include
any return, claim for refund, schedule, affidavit,
appraisal or any other document prepared by the
practitioner or the practitioner's firm, employees
or agents if the practitioner is withholding such
document pending the client's performance of its
contractual obligation to pay fees with respect to
such document.