I'm seeing the term "closed" referring to 2007. I know that no refunds will be issued, but are ammendments and filings not required? In other words, I have a person who has not filed 2005 and 2006. 2007 was filed by the deadline, 2008, 2009 and 2010 have all been filed. Should she not bother with 2005 and 2006 if not heard from the IRS on, the IRS prob owes her money which of course, I know she won't get. She could possibly owe them, won't be sure until do returns. Thanks!!!!
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I don't believe the statute of limitations applies to failure to file.
She really should file those returns.Evan Appelman, EA -
That was my original thoughts too, any other opinions?Comment
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The statute of limitations does not begin until the returns are filed & FTF penalites can get ugly.Comment
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If I do these returns and they are for a refund, should I send them in? I had a return before, and got a letter from the IRS saying that amount couldn't be refunded, well we knew that! Can that be avoided? Taxpayers don't like letters from the IRS!Comment
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Old Returns
I would obtain a 2848 and call PPL and ask what years they are looking for .I have found that at times if there was not a lot of income they will waive filing of the return.This saves the client from paying for a return they do not want.Comment
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Failure to file is a violation and the returns should be filed for just this reason. If they are not the IRS will create their own return from just the info they have and will set the tax at the MFS (highest) amount.
There is no way to "avoid" losing the refund if the return is not filed before the final date.
Nobody likes letters from the IRS so maybe they should file their returns on time to avoid the letters. The letter that was sent was to acknowledge receipt of the return while informing the TP that the refund amount would not be refunded due to late filing....Believe nothing you have not personally researched and verified.Comment
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I agree with taxea and everbody else - the returns need to be filed. If for no other reason than to get the SOL running. Unfiled returns can come back to haunt them in very unexpected ways.
If I think this is a client who might not like getting a letter from IRS advising that they aren't going to receive a refund, there's a pretty good way to set that up. Hand them the returns and tell them, "You'll be getting a letter you aren't going to like, but if you refuse to file you'll eventually be getting a letter you'll like a whole lot less (when they try to tax you at the highest rate possible)."Last edited by JohnH; 07-04-2011, 08:19 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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