Return preparation

[rfk]

I have a client with the usual mess that we run into in some form or another. This situation involves a personal and corporate return that I am preparing for TY's 2005, 2006, and 2007.

The corporation has no income and no assets (client did not follow through with the structural aspects of sales and assets in the corporation's name), but I feel that it has to be prepared, regardless, and reported according to the principles of tax requirements for the IRS and the state of CA.

Also, the client's wife has a partnership interest she is involved in (no longer involved in TY's 2007-2008), but a needed K1 for TY 2006. When I spoke to the preparer of the PTP return, she stated that they did not supply proper information for her to complete the PTP return, and they did not follow through with it, so far. Thus, no PTP return, no K1. So the issue here is that I will have to report their personal return without the K1 PTP item.

Bottom-line, seeking ideas, and added comments, I know I am correct in that they have to file the Corporate return regardless. But what is to be done with no K1 via no PTP return filed? It is obviously a case of the PTP return not being sent in yet, so no K1 would need to be filed. But the return would have to be eventually amended when it is sent to the IRS and the state at some point; do not know when though.

Please shed some light on this if I have missed anything relevant to the situation for proper tax reporting.

Thanks for your help.

RFK

[thomtax]

Just my personal observations and have no specific cite to back them up.

To me, having the knowledge that they are the cause of a partnership return not being filed, makes me wonder what they are trying to hide. In addition, to me, filing this return and leaving off income (or expenses) that you know about, would not be an acceptable situation for me. It pushes too close to the fraudalent return and with the new emphasis by the IRS, would cause me a lot of concern. Plus, since they left the other accountant hanging would also worry me.

As I say, this is just my personal feelings.

LT

[BHoffman]

How about turning a problem into an opportunity?

"I can't finish the return without the K-1. Would you like me to prepare the partnership returns?"

If they decline to allow me to prepare the partnership return, then I would be likely to tell them they have to provide the K-1 and just wait for them to git er done.

[taxea]

Return preparation

Get a retainer in cash (money order or cashiers check) that will cover prep of all years.
Don't do anything before you get the money. (Don't spend the money until you have completed the work.)

Ask for all correspondence from the IRS and state. Have client sign POA and obtain all years documents from the IRS and the state. You want to be sure the client has provided docs of all income reported to the IRS.

Then look at what docs you have for each year...if they are incomplete don't do anything until the client provides the necessary docs.

Get a copy of the last year's return that was filed. Prepare the returns consecutively beginning with the oldest.


Good luck, taxea

[ChEAr$]

unless

Get a retainer in cash (money order or cashiers check) that will cover prep of all years.
Don't do anything before you get the money. (Don't spend the money until you have completed the work.)

(snipped.....)

Good luck, taxea

it's a check. In that case, unless you really know the guy, cash the check, but of course
retain the funds until the time has passed for the bank to return a worthless check.

[Bees Knees]

Every engagement I have ever done for a non-filer eventually has the non-filer disappear, not give me the rest of the information, or flake out because I asked too many questions.

If you want to get paid for helping a non-filer, get paid up front. Also, have the non-filer sign an engagement letter up front that says they are responsible for getting you the info, and that you will not complete the return until all info requested is delivered to you in a timely manner.

I tend to get very picky and technical with non-filers. Is there a penalty for not filing a corporate return with zero income and zero assets? I don’t know and I don’t care. To me it is irrelevant in the case of a non-filer because I will make them file everything and dot every i and cross every t if they want me to do any work for them.