I have a client that needs to file returns for 2011-2018. I plan to send paper returns since I can't efile the early ones. My question is what is the best way to handle his tax owed/refunds? In 2011 and 2012 he owes tax, from 2013 - 2018 he is due refunds. I'm hoping that his refunds wipe out the tax/penalty/interest from 2011/2012. Is there a way to send them that will spark the IRS/State of Illinois to process them together or will they all be process separate and spark a mass of notices?
It goes against what I have always done with a series of late returns which is to file the newest return first and work backwards but in this case, I would file the older ones first so the taxes can be assessed and then have the newer ones reduce the tax and penalties. You are too late for 2013 and 2014 refunds. 2015 will depend on whether or not there was an extension filed. I believe there will be a flurry of letters no matter what the order of filing them is.
It goes against what I have always done with a series of late returns which is to file the newest return first and work backwards but in this case, I would file the older ones first so the taxes can be assessed and then have the newer ones reduce the tax and penalties. You are too late for 2013 and 2014 refunds. 2015 will depend on whether or not there was an extension filed. I believe there will be a flurry of letters no matter what the order of filing them is.
Follow up to this, if they owed for 2012 and have refunds in the following years that cover that, is it ok NOT to send a check with the return and let the IRS assess and net the years?
Yes. But 2013 , 2014, and probably 2015 won't be in the net.
The more I know, the more I don't know.
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