- 200 N 2nd ST Booneville, MS 38829
- info@htstaxpros.com
- (662)340-1031
Data Retention Policy
Purpose
HTS Tax Pros, LLC (“HTS,” “we,” or “the Company”) is committed to protecting client information and complying with all federal, state, and professional regulations governing the collection, use, storage, and disposal of personal and financial data. This Data Retention Policy establishes the standards for how client records are maintained, retained, and securely disposed of to meet IRS requirements, state regulations, and industry best practices.Scope
This policy applies to all client data, whether in paper or electronic form, including:- Personally Identifiable Information (PII): Names, addresses, Social Security numbers, driver’s license numbers, etc.
- Tax Documents: W-2s, 1099s, prior tax returns, supporting schedules, receipts, and financial statements.
- Business Records: Contracts, engagement letters, and correspondence related to tax preparation services.
- Electronic Data: Emails, cloud backups, e-signatures, and accounting software records.
Physical Document Handling
HTS Tax Pros, LLC does not retain original physical documents provided by clients during the tax preparation process. All paper records submitted by clients are digitally scanned or entered into our secure system for recordkeeping. Once digital copies are captured, all original physical documents are promptly returned to the client at the completion of the tax preparation process. HTS maintains only the digital records necessary for compliance with federal and state retention requirements.Retention Periods
| Record Type | Retention Period | Legal/Regulatory Basis |
|---|---|---|
| Client tax returns & supporting documents | 7 years from filing date | IRS audit & statute of limitations |
| Business tax returns & supporting records | 7 years from filing date | IRS & state retuirements |
| Client engagement letters & agreements | 7 years from service completion | Best practice |
| Client communications (email,letters) | 3 years | Best practice |
| Employee payroll & HR Records | 7 years after termination | IRS & DOL |
| Financial records (Invoices, receipts) | 7 years | IRS |
| Electronic backups of tax files | 7 years | IRS |
| Marketing & inquiry data (prospective clients) | 2 years from last contact | Business necessity |
Storage, Security, and Disposal
HTS maintains client data in secure, access-controlled systems. Security measures include encrypted digital storage, restricted employee access, and secure client portals. At the end of the retention period, HTS will securely dispose of records through shredding, permanent deletion, or wiping of electronic media.Compliance
This policy complies with IRS regulations (26 U.S. Code § 6501 – Statute of Limitations), the Gramm-Leach-Bliley Act (GLBA), and applicable state privacy and data protection laws. It will be reviewed annually and updated as needed to reflect legal or operational changes.Policy Review
This policy will be reviewed annually and updated as needed to reflect changes in laws, regulations, or company practices.Record Requests:
**Fee is to cover any printing/postage cost.
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