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Level 1
July 26, 2022

filing back taxes

  • July 26, 2022
  • 1 reply
  • 4 views

I have a client who did not file in 2014.  IRS, EDD, FTB say they have no transcripts of income.  Need to remove homebuyer credit repayment due to short sale.  Do I just list the income as zero?

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    1 reply

    sjrcpa
    Level 15
    July 26, 2022

    Is zero income accurate? Did you ask the client? How did he live with zero income?

    Not everything gets reported to the tax authorities, even if it is taxable income.

    The more I know the more I don’t know.
    IRonMaN
    Level 15
    July 26, 2022

    He lives very, very, very frugally 😀

    Slava Ukraini!
    PATAX
    Level 12
    July 26, 2022

    @IRonMaN it could be. I think everyone has heard of, or known that person that looked like a broken down bum, that ate tomato soup everyday in a can that he warmed up with the pilot light on the stove. Then it turned out he or she was a millionaire. And probably had the money in an interest-free checking account and therefore had no income from it.