Discussion:Old tax returns 1998-2003 married filing joint

You should be going back 6 years and 6 years only unless one of those conditions applies. In addition, an SFR IS acceptable for Offer purposes.

http://www.irs.gov/pub/foia/ig/spder/p-5-133.pdf

It's what is required under the law and what is in the best interest of your client.

Do you have account transcripts for all years in question?

One reason for the 6 year policy is that, if they have 1099/W-2 data, they do an SFR. If they having nothing to do an SFR with, they typically close the account as "no requirment to file". You can read the code and committee reports and anything else you want until you are blue in the face. I am telling you how it works out here.

Moot, because the policy is worded to allow for situations where t/p stalls the process, IOW, how many years in the first request to file delinquent returns. T/p cannot be allowed to profit by refusing to file the up to 6 years returns requested. If t/p can stall enforcement for 6 years (e.g. timely file current returns when due, for 6 years) should he/she then be completely off the hook on the old years?

I suspect it's for other reasons, but who really knows. On business return t/p's, W-2/1099 won't help much if at all.

Mike (and you know this is not a criticism), I have had both Revenue Agents and Revenue Officers ask for returns more than six years old on very rare occasions. In a couple cases it was proper. However, they cannot do so on a whim. When that occurs, I remind them that they are REQUIRED to get PRIOR managerial approval.

BTW, irsfixer and I have been doing this for a combined 45 years. If you choose to ignore our advise, please disclose to your clients that you are needlessly filing returns; needlessly racking up fees and needlessly racking up huge tax liabilities because you don't know how to do your jobs.

(2) Taxpayers failing to file tax returns due will be requested to prepare and file all such returns except in instances where there is an indication that the taxpayer's failure to file the required return or returns was willful or if there is any other indication of fraud. All delinquent returns submitted by a taxpayer, whether upon hislher own initiative or at the request of a Service representative, will be accepted. However, if indications of willfulness or fraud exist, the special procedures for handling such returns must be followed. (3) Where it is determined that required returns have not been filed, the extent to which compliance for prior years will be enforced will be determined by reference to factors ensuring compliance and evenhanded administration of staffing and other Service resources. (4) Factors to be taken into account include, but are not limited to: prior history of noncompliance, existence of income from illegal sources, effect upon voluntary compliance, anticipated revenue, and collectibility, in relation to the time and effort required to determine tax due. Consideration will also be given any special circumstances existing in the case of a particular taxpayer, class of taxpayer, or industry, or which may be peculiar to the class of tax involved. (5) Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years. Enforcement beyond such period will not be undertaken without prior managerial approval. Also, if delinquency procedures are not to be enforced for the full six year period of delinquency, prior managerial approval must be secured.''''

I appreciate your authority but give a girl a break. I printed out the policy, and not only READ it but discussed it with a colleague and than posted my query. I have no desire to do busy work just to rack up fees (the clients just keep coming). I would love to file only last 6 years for the Corporation I mentioned above. Are you saying (with your 45 years of experience with IRSFIXER) that is negligent to file the returns beyond 2001??

See, you think of it as a bunch of losers who do not want to pay their taxes but in the real world it is:

- the divorced person that lost everything and could not afford to pay their taxes this year and it snowballed out of control on them - the guy that got a 1099 because his employer f***ed him over and he gets the huge tax bill and is now afraid to file - the alcoholic that lost control of his life and wants to get back in the system

and on and on...

The irony is, the same folks that think these people should take responsibility for their own affairs, want to crucify a preparer for preparing joint returns for a guy that got dumped. A return that showed the balance due about 4 inches from his signature affirming that he has read and understood it all. What hypocrisy.

I don't want to file them...But I also must use wisdom to not destroy myself in the process!! This attorney (who happens to be a CPA) gives wisdom and guidance. It is about compassion and wisdom. I have had too many people come back to me and try to "blame the one that is trying to help them". One gets a little wiser through out the years when one is burned!

It is this line that made me think I was doing the devil's work.

In this particular thread, it seemed like the consensus, at least what I got, was that the preparer could prepare the returns correctly, advise the client, and let them decide what to file. I agree with that approach. That should not offend you. If it does I don't know what to say. I meant no offense. This is a group of preparer's all trying to do the right thing. We can disagree on approach can't we?

Again, information is power, and I am sure I am not the only one that learned soemthing in this thread. I appreciate your knowledge and experience.

Seems like we should rename this thread - To File or Not to File...