Client Intake

📁 Client Intake & Master File Documents

These foundational documents are for every client, setting the stage for all specialized planning. Please note that not all clients will have or need every document on this page. In essence any document that affects your tax position is a requirement.

CategoryDocument / Form
Client OnboardingEngagement Letter: Clearly define the scope of services, responsibilities, and fee structure for each client engagement.
Tax Organizer/Intake Form: A client-facing questionnaire covering personal information, income sources, deductions, and life changes for the year.
GDPR/Privacy & E-Signature Consent: Forms for securing client consent on data processing and the use of electronic signatures.
Core ReportingPrior Year Tax Returns: Copies of federal and state returns from the last 3-5 years to identify trends and carryforwards.
Financial Statements: Audited, reviewed, or compiled financial statements (Balance Sheet, Income Statement, Cash Flow).
General Ledger/Transaction Data: A complete general ledger, bank and credit card statements, and a detailed trial balance.
Payroll Reports: Quarterly (941) and annual (W-2, 940) payroll tax filings and reports.

🏢 Business Entity & Operations Documents

For business clients, this intake package is crucial for proper compliance and strategy.

CategoryDocument / Form
Entity FormationFormation Documents: Articles of Incorporation/Organization, Certificates of Formation, and state filings.
Governing Agreements: Corporate Bylaws, Shareholder Agreements, Partnership Agreements (GP, LP, LLP), or LLC Operating Agreements.
Entity Elections: Form 2553 (S-Corp Election), Form 8832 (Entity Classification Election).
EIN Assignment Letter: The official letter from the IRS assigning the business’s Employer Identification Number.
CorporateMeeting Minutes: Corporate minutes documenting major decisions (e.g., dividend declarations, major purchases, officer elections).
Stock Ledger/Cap Table: A complete record of stock issuances, transfers, and ownership percentages.
Partnerships/LLCsCapital Account Statements: Detailed accounts for each partner/member, tracking contributions, distributions, and share of profits/losses.

💰 Compensation & Benefits Documents

Compensation is a key area of tax planning and IRS scrutiny.

CategoryDocument / Form
Core PayrollPayroll Service Reports: Detailed reports including pay stubs, tax withholdings, and quarterly/annual summaries.
Officer/Shareholder Compensation Documentation: Salary studies, comparability data, and board approvals justifying reasonable compensation.
Equity CompensationEquity Award Agreements: Agreements related to Incentive Stock Options (ISOs), Non-Qualified Stock Options (NSOs), and Restricted Stock Units (RSUs).
Exercise & Vesting Records: Forms documenting option exercises, vesting schedules, and 83(b) election filings.
Forms 3921 & 3922: Company-filed forms for ISO exercises and ESPP transfers.
Retirement PlansPlan Documents & Adoption Agreements: The official retirement plan document (e.g., 401(k), SEP, SIMPLE).
Trust Documents & Annual Reports (Form 5500): For qualified plans, including the annual return/report of employee benefit plans.
Contribution Records: Detailed logs of employer and employee contributions, including catch-up contributions.
Fringe BenefitsBenefit Plan Descriptions: Documentation for group health, life insurance, HSA, FSA, and educational assistance programs.
Vehicle Logs/Records: Detailed mileage logs and vehicle expense records to substantiate business use.
Accountable Plan Reimbursements: An accountable plan adopted by the business, plus employee expense reports with receipts.

📈 Asset Management, Purchases & Sales

Strategic management of business assets requires specific documentation to maximize tax benefits.

CategoryDocument / Form
PurchasesPurchase Contracts/Invoices: For all business assets, detailing purchase price, date, and parties involved.
Financing Documents: Loan agreements, promissory notes, and security agreements.
Asset ManagementAsset Depreciation Schedule: A fixed asset ledger with each asset’s cost, placed-in-service date, and depreciation method.
Cost Segregation Study: The completed study report and its supporting workpapers for real property.
Section 179 Expensing Election: Formal documentation of the intent and amount of the Section 179 deduction taken.
Sales & DispositionsSales Contracts: The final closing statement or contract for the sale of a business or its assets.
Form 4797: The form reporting the sale of business property.
Form 8594 (Asset Acquisition Statement): For an asset sale, detailing the allocation of the purchase price.

🏡 Real Estate & Passive Activity Documents

For clients with real estate holdings, this file supports complex tax planning and compliance.

CategoryDocument / Form
Property RecordsPurchase & Sale Agreements: Contracts and closing statements (e.g., HUD-1) for each property.
Lease Agreements: Copies of all active leases for rental properties.
Improvement Records: Invoices for capital improvements to support basis adjustments.
Form 1098 (Mortgage Interest): Annual statements from lenders.
DepreciationDepreciation Schedules: The schedule for each property, showing land vs. building cost allocation.
Cost Segregation Study: The completed study report and its supporting workpapers.
Tax ElectionsForm 3115 (Change in Accounting Method): Filed to change the method of depreciation or other accounting practices.
Form 8824 (Like-Kind Exchange): Filed to report a Section 1031 exchange.
Passive Activity Loss (PAL) Worksheets: Detailed calculations supporting PAL limitations and exceptions.

🏦 Investments, Capital Gains, & High-Net-Worth Documents

Serving high-net-worth clients requires a robust set of documents to manage investment income.

CategoryDocument / Form
Investment ReportingBrokerage Statements (Forms 1099-B, 1099-DIV, 1099-INT): Year-end tax statements from financial institutions.
K-1s (Schedule K-1): Tax information statements from partnerships, S-corps, estates, and trusts.
Stock Option & RSU Records: Award agreements, vesting schedules, and exercise confirmations.
Loans & GiftsPromissory Notes: For all related-party and below-market loans, including stated interest rate and repayment terms.
Gift Records: Documentation of cash and property gifts, including appraisals and Crummey notices.
InternationalForms 5471, 8865, 8858: Information returns for foreign corporations, partnerships, and disregarded entities.
FBAR (FinCEN Form 114): Filed for foreign financial accounts exceeding $10,000.
FATCA Forms (Form 8938): For specified foreign financial assets.
Tax ElectionsForm 8897 (Section 83(b) Election): For restricted stock, to elect to be taxed at grant rather than vesting.

💝 Charitable & Estate Planning Documents

For clients planning significant gifts or complex estate transfers.

CategoryDocument / Form
Donor RecordsDonor Acknowledgement Letters: For each cash or non-cash donation of $250 or more.
Form 8283 (Noncash Charitable Contributions): For property donations valued over $500.
Qualified Appraisal: For donations of property valued over $5,000, a formal appraisal must be attached.
Vehicle Donation Documents: The Acknowledgement of Sale from the charity for a vehicle donation.
Estate & TrustWill & Trust Documents: The client’s Last Will and Testament and any Revocable or Irrevocable Trust agreements.
Trust Accounting Records: Income and principal ledgers, distribution records, and a list of trust assets.
Schedule K-1 (Form 1041): Issued to beneficiaries of estates and trusts.
Form 706 (Estate Tax Return): Filed for estates that exceed the filing threshold.

🏦 Advanced Wealth Structuring & Family Office Governance

For UHNW clients, the operating entity is often a formalized family office. The required documentation shifts from basic business papers to comprehensive governance and regulatory compliance.

  • Formal Governance Documentation: UHNW structures often involve multiple entities (trusts, LLCs, foundations). Essential documents include detailed family mission and values statements, investment policy statements (IPS) for each pool of capital, and formal family employment and loan policies to substantiate economic substance and avoid tax recharacterization. With increased IRS focus on UHNW taxpayers, strong governance documents are a new standard for compliance.
  • Entity-Specific Compliance Records: To comply with the Corporate Transparency Act and global regulatory norms, you need: a beneficial ownership register for all legal entities; proof of filings for FinCEN, FBAR (FinCEN Form 114), and Form 8938 (Statement of Specified Foreign Financial Assets); and, for entities with foreign partners, a completed FATCA registration.
  • Cross-Border & Treaty Documentation: For clients with assets or residency in multiple jurisdictions, document physical presence logs, professional advisory maps for each jurisdiction, and relevant tax treaty election forms (e.g., Form 8833) for U.S. clients claiming treaty benefits.

📜 Advanced Estate & Tax-Efficient Trust Planning

The standard trust documents are just the beginning. UHNW planning focuses on sophisticated vehicles to freeze or reduce estate values.

  • Sophisticated Trust Instruments: Move beyond simple revocable trusts to include:
    • Grantor Retained Annuity Trusts (GRATs), Spousal Lifetime Access Trusts (SLATs), Qualified Personal Residence Trusts (QPRTs), and Intentionally Defective Grantor Trusts (IDGTs).
    • Completed funding checklists showing exactly which assets (business interests, real estate, life insurance) were transferred into these trusts.
    • Crummey withdrawal power notices and records for annual exclusion gifts made to trusts.
    • Allocation records for Generation-Skipping Transfer (GST) tax exemption (reported on Form 709), which is crucial for dynasty trusts.
  • Estate Freeze & Closely Held Business Records: UHNW clients often own valuable, illiquid assets. For entities used in estate freezes (like Family Limited Partnerships (FLPs)), you must retain formal business purpose memos, annual valuation reports of transferred interests, and contribution & distribution records to support valuation discounts.
  • Charitable & Split-Interest Structures: For sophisticated philanthropy, maintain the trust instrument for vehicles like Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs), alongside the Form 8283 for non-cash contributions and appraisal documentation.

✈️ High-Value Tangible & Lifestyle Assets

UHNW wealth often includes unique assets with significant tax, reporting, and insurance implications.

  • Alternative & Complex Investments: These require specific K-1s and partnership agreements, but also subscription and side letter agreements for fund terms, valuation reports for illiquid assets, and loan/line of credit documentation for assets like private equity interests.
  • Luxury Assets (Aircraft, Yachts, Art, Collectibles): Ownership is often through an SPV, requiring all formation and operating documents for those entities. Maintain complete purchase/sale and import documentation, operational logs (flight, navigation, and maintenance logs for aircraft; cruising logs for yachts), insurance policies, appraisals, and Form 1098 forms. Insurers’ records may be used to verify the value of these lifestyle assets.

📝 International & Specialized Compliance

  • International Trust & Foundation Documentation: For offshore trust structures, you need the original trust deed, letter of wishes, resolutions, and proof of registration with local authorities. For non-grantor trusts, specific IRS forms are required: Form 3520-A (Annual Return of Foreign Trust with a U.S. Owner) and Form 3520 (for owners or beneficiaries receiving distributions). For non-U.S. situs trusts, retain IRD registration confirmation if relevant.

💎 Other Key Specialized Documents

  • Tax Liability Management:
    • Private Placement Life Insurance (PPLI) or Variable Annuities (PPVA): Policy documents, premium payment records, investment election forms, and loan documentation (e.g., split-dollar life insurance agreements).
    • Net Investment Income Tax (NIIT) Planning: A complete breakdown of investment income by category, and a file of any passive activity loss carryover worksheets.
    • Cancellation of Debt (COD): Documentation for any Form 1099-C received, along with insolvency worksheets or bankruptcy filings if exclusions are claimed.
  • Family & Succession Planning:
    • Pre-nuptial and post-nuptial agreements.
    • Divorce decrees and separation agreements.
    • Beneficiary designation forms for all retirement accounts and insurance policies.
    • Family education and communication plans for non-financial legacy.

📌 25+ FAQs Based on the Client Intake Document

General & Onboarding

  1. What is the single most important document for every client?
    Any document that affects your tax position is required. Foundational documents include the Engagement Letter, Tax Organizer, and GDPR/Privacy Consent.
  2. How many years of prior tax returns should I provide?
    Copies of federal and state returns from the last 3–5 years.
  3. Do I need to provide my general ledger even if I have financial statements?
    Yes – a complete general ledger, bank/credit card statements, and trial balance are required for proper compliance.

Business Entities

  1. What formation documents are needed for an LLC?
    Articles of Organization, the LLC Operating Agreement, and the IRS EIN Assignment Letter.
  2. Which forms are used to elect S-Corp or C‑Corp status?
    *Form 2553 for S-Corp election; Form 8832 for Entity Classification Election.*
  3. What records must a corporation keep for major decisions?
    Meeting minutes documenting dividends, major purchases, officer elections, plus a stock ledger/cap table.
  4. What capital account records are required for partnerships?
    Capital account statements for each partner/member, tracking contributions, distributions, and profit/loss shares.

Compensation & Benefits

  1. How do I document reasonable officer compensation?
    Salary studies, comparability data, and board approvals.
  2. What equity compensation records are essential?
    *Award agreements (ISOs, NSOs, RSUs), exercise/vesting records, and 83(b) election filings.*
  3. Which retirement plan documents must be kept?
    *Plan documents/adoption agreements, trust reports (Form 5500), and detailed contribution records.*
  4. How do I substantiate business use of a vehicle?
    Detailed mileage logs and vehicle expense records.

Asset Management

  1. What is a cost segregation study and when is it needed?
    A study that reclassifies real property components for accelerated depreciation – required to support the depreciation method.
  2. Which form reports the sale of business property?
    Form 4797 (Sale of Business Property).
  3. What document allocates purchase price in an asset sale?
    Form 8594 (Asset Acquisition Statement).

Real Estate & Passive Activities

  1. What real estate closing documents should I keep?
    *Purchase/sale agreements, HUD‑1 closing statements, lease agreements, and Form 1098 (mortgage interest).*
  2. How do I report a like‑kind exchange (1031 exchange)?
    File Form 8824 (Like‑Kind Exchange).
  3. What are PAL worksheets used for?
    Passive Activity Loss worksheets support PAL limitations and exceptions.

Investments & High‑Net‑Worth

  1. Which forms report investment income from brokerages?
    Forms 1099‑B, 1099‑DIV, 1099‑INT, and K‑1s from partnerships, S‑corps, estates, and trusts.
  2. What international reporting forms are required for foreign entities?
    Forms 5471 (foreign corp), 8865 (foreign partnership), 8858 (disregarded entity), plus FBAR (FinCEN Form 114) and FATCA Form 8938.
  3. How do I make a Section 83(b) election for restricted stock?
    File Form 8897 to elect taxation at grant rather than vesting.

Charitable & Estate Planning

  1. *What documentation is needed for a non‑cash donation over 5,000.
  2. Which estate tax return must be filed for large estates?
    Form 706 (Estate Tax Return).

Advanced Wealth & UHNW

  1. What governance documents are critical for a family office?
    Family mission/values statement, investment policy statement (IPS), and formal family employment/loan policies.
  2. Which trusts are used for estate freezing (GRATs, SLATs, etc.)?
    GRATs, SLATs, QPRTs, IDGTs – plus funding checklists and GST exemption allocation records (Form 709).
  3. What records are required for luxury assets like aircraft or yachts?
    Purchase/sale docs, operational logs (flight, navigation, maintenance), insurance policies, and appraisals.
  4. What international trust forms must be filed for a foreign trust with a U.S. owner?
    *Form 3520‑A (annual return) and Form 3520 (owner/beneficiary distributions).*
  5. How do I document cancellation of debt (COD) income exclusion?
    Form 1099‑C, insolvency worksheets, or bankruptcy filings.

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