I recommend that all clients, and especially business owners, provide a letter of instruction to the accountant in the event of death, disability, unexplained absence, or missing person status. Here is a sample of a letter that may be reproduced and used for this purpose.
Dear Tony Novak CPA,
In the event of my death, disability, unexplained absence, or missing person status, I instruct that you:
- Coordinate with my Executor or Successor
- Provide full cooperation to my executor, trustee, attorney, or other fiduciary identified below.
- Deliver copies of recent financial statements, tax returns, payroll records, and other relevant business and tax information.
- Maintain Confidentiality and Professional Judgment
- Continue to protect confidential information as required under AICPA Code of Professional Conduct §1.700 (Confidential Client Information Rule).
- Disclose only what is necessary to enable lawful administration of my business and estate.
- Assist with Tax and Compliance Matters
- Prepare and file all final income tax returns, payroll tax filings, and information returns (Form 1120, 1040, 1065, 941, etc.) as authorized by my executor or power of attorney.
- Provide advisory assistance to assure that deadlines under IRC §6072 (Filing Dates) and §6901 (Transferee Liability) are met.
- Provide Access to Accounting Systems and Records
- Release or transfer control of QuickBooks, payroll systems, or electronic financial accounts only to authorized representatives named below.Authorized Contacts in Case of Death or Disability
Executor or Trustee: _____________________
Successor Business Manager: ______________
Attorney: _____________________________
Next of Kin/Beneficiary: __________________
Compensation and Continuity
You are authorized to continue billing at your standard rates for services rendered during this period.
Duration and Revocation
This letter remains in effect until revoked in writing by me.
Sincerely,
__________________________________
Signature and date