Messy situation

[chenschuh]

Just received a phone call. This person thinks she hadn't filed tax return since 2018. She wasn't actually sure. Now she wants to come clean with IRS. She had a business she had been opertating. She is going to bring PL sheet from her quickbooks to me. I don't think I am going to take her as a client. But would like to give her some recommendations before I sent her so someone else.

[dascpa]

Run away, fast.

Only thing I'd tell her is file ASAP before this turns into a criminal matter. Then hire a tax resolution company and a tax attorney.

[Just-Lisa-Now-]

Some people LOVE this kind of work, Im not one of them!   

If you do take them on, be sure to get a LARGE retainer up front.

[BobKamman]

Hope for the best and expect the worst.  You don't know yet, she may be eligible for EIC that would generate refunds for the last three years.  She probably thinks she is the only person in the world with this situation, while we know that there are hundreds of thousands of them.  How to proceed depends on the facts and circumstances of each case, but the common goal of IRS and the tax professional is to get her back into compliance.  Often that means filing the last three years.  Sometimes, only the last year.  Rarely, the last seven years.