How does a tax preparation office organize client files in vertical cabinets?

Tax preparers organize client files by tax year and by client name within each year. A 4-drawer vertical file cabinet often holds a full year's clients in the top two drawers, with the prior year in the lower drawers. After 3 years, older year files may move to archive storage (lockable filing in a back room). Each client folder contains: the prior-year return (for reference), current-year source documents (W-2s, 1099s, receipts), the completed return, and the engagement letter. Client source documents are often returned to clients after filing — only a copy stays on file. A 7-year retention policy for completed returns is standard. Client financial information requires locked storage. FindOfficeFurniture.com — call 888-719-4960.