# Audit-Ready Client File Checklist

Audit readiness is a side effect of consistent filing, not a last-minute project.
Use this checklist to get a client engagement to a state where any document can be
found by browsing a folder rather than searching email.

## Structure check

- [ ] One folder per client, then per tax year or fiscal year.
- [ ] A fixed set of category subfolders, identical for every client:
      Income, Deductions, Statements, Returns, Correspondence, Workpapers.
- [ ] No documents living only in email, Downloads, or a "Miscellaneous" pile.

## Naming check

- [ ] Every file follows one template: {YYYY}_{Client}_{DocType}_{Detail}.ext
      e.g. 2026_Acme-Corp_1099-NEC_Bregman.pdf
- [ ] Document types are consistent (W-2, 1099-NEC, K-1, Bank-Statement, Return).
- [ ] No client initials or ad-hoc abbreviations that only one person understands.

## Completeness check

- [ ] You can assemble a full client package by browsing the client folder.
- [ ] Source documents tie to the workpapers and the filed return.
- [ ] Anything you could not classify is in a clearly labeled Needs-Review folder,
      not silently misfiled.

## Retention note

The IRS generally requires keeping records that support an item on a return until
the period of limitations runs out (at least three years for most returns). A
per-client, per-year structure makes meeting that requirement a matter of keeping
the right year folders. See https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

Generated with Sortio. See https://www.getsortio.com/blog/make-client-files-audit-ready