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TP has not filed 1040 since '07.Plan do all 1040's thru '21.Any feedback? Don't have software that far back and will see if Pro Series can help.Madness! Thanks

Forum|Forum|4 years ago
May 14, 2022
7 replies
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Best answer by George4Tacks

I would start with the oldest so that the proforma to next year reduces input.

itonewbie

Level 15

Do you anticipate your client to have large balances due on those returns? Does your client have any foreign-related items such as financial accounts, assets, CFC, trusts, etc. for which information returns would have been required?

If neither of these apply to your client, the IRS would normally settle for 3 to 5 years. Once you have a better handle of the facts, you could call the PPS with a PoA and discuss the filing with them.

In the event your client has foreign financial assets for which information returns have not been properly filed, you may want to check whether your client is eligible for the streamlined procedures.

---------------------------------------------------------------------------------Still an AllStar

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PabloAuthor

Level 5

Excellent advice. thanks

BobKamman

Level 15

Yes, I agree, filing returns that far back is madness.

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PabloAuthor

Level 5

All advise is terrific and most helpful

thanks!!!!

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TaxGuyBill

Level 15

As Itonewbie mentioned, I would suggest the IRS be contacted and asked how many returns they want. From what I've read, they usually only want the last 6 years (or less).

BobKamman

Level 15

And who would you contact at IRS? (Not that anyone answers the phone.) And do you really expect something in writing? (Perhaps delivered by a flying pig.) The revised Internal Revenue Manual indicates that voluntary disclosure may help if the taxpayer is trying to avoid criminal prosecution, but we know far too little to hazard a guess about this practitioner's client. Would refunds have been paid on timely returns? Would the balance due be three figures or six figures for most years? Let's not pull out an AK-47 if a flyswatter would work. Even if we want to show off our skills with a big gun.

itonewbie

Level 15

And, of course, we all know the IRS will not reduce anything to writing for this.

---------------------------------------------------------------------------------Still an AllStar

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Norman2001

Level 6

I used to volunteer at a VITA site. It was fairly common for people to come in who hadn't filed in several years. Guidance from IRS was to file returns for the last 6 years.

George4Tacks

Level 15

Some states are a bit more pushy. Since I have the software back to the stone tablet that recedes the 1040, and I like to punish those idiots that come to me to clean up their act - I file every single one of them. I feel it gives an extra boost to "compliance" and lays out the road of OIC much more cleanly.

On the other hand I have been told I am a glutton for punishment.

Answers are easy. Questions are hard!

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PabloAuthor

Level 5

Thanks. I'm usually like you.

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poolcleaner

Level 8

Start with the newest return first and continue to go back long enough to show a pattern of no balance due. In my experience six years has been the norm.

George4TacksAnswer

Level 15

I would start with the oldest so that the proforma to next year reduces input.

Answers are easy. Questions are hard!

BobKamman

Level 15

I would start with 2019 because if a refund is due, it's not too late to claim it. (Maybe 2018 if the state has a longer SOL.) Then get paid for that year before doing 2020, and 2021. By then you should be able to spot how small these potatoes are.

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poolcleaner

Level 8

I forgot to mention one of the most important issues with late filers. Get some or all of your fees up front as many of these people have a tendency to disappear when it is time to pay you.

Another Former All Star

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PabloAuthor

Level 5

Thank you.

Everyone's input was most helpful.

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