Amending Fradulent Return

[Chief]

I have a new client who wants me to amend 2005 and 2004 returns. He had Amscot do a return with only one W2 and he really had three. The result, he received a refund of $4717 when actually he should have paid a little over $300. Now he owes $5,000. He told me he knew he owed that money and had placed his refund check in the bank. (Amscot had charged him $240 for his return)

With my big soft heart I really feel for him. I planned to prepare a 1040X and an installment agreement to let him decide what he can pay initially and how much he can pay monthly.

What would you suggest I do in this situation. I have my fees in cash already.

I still need to do the 2004 amendment. Lord only knows what that will bring. I feel saturated right now. If I had to do as many returns as some of you I would be bonkers.

[taxmandan]

Amend

Since the most important thing is done, getting the fee up front, I would prepare the amended returns and give them to him so he can file them with the installment request. Remind him that he will owe interest for late payment.