Discussion:9 years of taxes

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Discussion Forum Index --> Tax Questions --> 9 years of taxes


Ztom (talk|edits) said:

5 August 2011
Have client who came in with 9 years of taxes. The IRS and State of Calif. have attached his wages, he has so many papers to go thru trying to figure out what he owes. I completed the 9 years taxes and have suggested he go ahead and file them and let IRS figure what he owes. I estimate he owes around 20k in back taxes, mostly 2001,2002, the rest of the years there are refunds and minor amounts due. I think he should file an offer in compromise. Any suggestions would be appreciated.

Dallas CPA (talk|edits) said:

5 August 2011
Criminal statute is 6 yrs. Tax attorneys here advise only to file 6 yrs back. In cases of nonfilers, I always ask the IRS for an account transcript so I at least have everything they have for those yrs.

Mscash (talk|edits) said:

5 August 2011
Assessments have obviously been made but for what years? IRS policy is to solicit only six years of delinquent returns unless there is fraud. Negligence is not fraud. California will go back to when the real estate stopped being a part of Mexico.

You will have to file returns for any year that a substitute for return assessment or its state counterpart has been made but not for other older years. You can't negotiate any kind of resolution until that is done. If you thin he should file an offer in compromise, fine, but the ususal rules will apply after the dust settles.

Ztom (talk|edits) said:

5 August 2011
They are already asseccing him for 2001 thru 2007 and employer is wh over $700 month. The largest amount is for 2002, he owed $13k now according to IRS he owes 26k, because of interest etc

Billthetaxguy (talk|edits) said:

5 August 2011
Hello, I'm new here. This is actually my first post. I was looking for answer to a question when I spied this question. I've done many of these. There are several cautions here. If the client ever intends filing BK, I'm told all returns have to be filed. I've gotten many referrals from BK att's. to do these for their clients.

As far as his or her true balance. My suggestion, do the returns, as if they were being timely filed. All of us know, if a refund, IRS only has to refund if 3 yrs or less. (and yes, a few other variables) However, sometimes, they will credit refunds to taxes owed on later years. This has occurred for me several times. Let IRS and state calculate interest and penalties. Then pay rthe bills, do installment agreement OIC or ?????

Irsfixer (talk|edits) said:

5 August 2011
On what do you base your thought that he should file an OIC? Is it a vague notion or is it based on a thorough analysis of his financial situation?

Irsfixer (talk|edits) said:

5 August 2011
On what do you base your thought that he should file an OIC? Is it a vague notion or is it based on a thorough analysis of his financial situation?

HeartBreak (talk|edits) said:

6 August 2011
Hold on a second, Crim statute is 6 years??? What does that have to do with anything? An unfiled return never tolls the staute for Federal tax purposes. Therefore, if he owes $50 from 1971 on an unfiled return, HE STILL OWES $50!!! (+ interest and penalties). He needs to file all 9 years. You need to prepare the returns as best as possible. Get a POA for all years (or have taxpayer pull them) and get transcripts going back (should be available all the way back) and reconcile the transcripts with the docs you have. Watch out for expiring SOL's on refund years as the refund will become unavailable but the bal due will continue. Once a total balance due has been determined and any penalties and interest assessed, THEN you can consider OIC if taxpayer is a candidate.

Irsfixer (talk|edits) said:

6 August 2011
Unassessed taxes from an unfiled year are not subject to the assessment statute but once assessed via an SFR, the 10 year collection statute applies.


Trillium (talk|edits) said:

6 August 2011
Copying a post I made July 22 on another discussion on this topic, as it seems to apply equally well here:

The decisions to be made in this situation are discussed in depth in many prior discussions:

There are several people posting here who specialize in that type of filing - as you're reviewing the prior discussions, look for their posts in particular. For example: irsfixer, mscash, skassel, and a handful of others that you'll tend to recognize after reading through several discussions (not to take anything away from those who have posted on this discussion, as they may also be thoroughly familiar with many, if not all, of the prior discussions on the topic or the concepts discussed there).

Also, please don't miss the discussions that include info about P-5-133.

Mscash (talk|edits) said:

7 August 2011
My previous post in this thread was general information. I would want to know more before pontificating in detail. I'm sure any of the other posters with collection backgrounds would too.

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