Five Years of Tax Returns

[geekgirldany]

New client is having to file back tax returns. ACS is doing a garnishment on his wages starting next week. They told him if he can get 2011 & 2012 to them next week then they will do an installment agreement on past years and take the wage garnishment off. Then I will prepare the prior years later.

So 2012 return, should I just let ACS handle the filing of it? Or does it still need to be efiled? I feel kind of silly asking this question but not sure since ACS is involved and they will have it before the 30th.

Thanks
dany

[DaveinTexas]

New client is having to file back tax returns. ACS is doing a garnishment on his wages starting next week. They told him if he can get 2011 & 2012 to them next week then they will do an installment agreement on past years and take the wage garnishment off. Then I will prepare the prior years later.

So 2012 return, should I just let ACS handle the filing of it? Or does it still need to be efiled? I feel kind of silly asking this question but not sure since ACS is involved and they will have it before the 30th.

Thanks
dany

I would prepare the return yourself, get an ACS agent on the phone and fax it to the agent while you wait on the phone. If you e-file it, it will take some time to update the return in their system and by then the garnishment would be underway. If you fax it to them they will either forward it to processing or let you e-file it, but at least they can update the 2012 information in their system and they can start the negotiation process. They may even ask for a 433F while on the phone, if you already haven't provided that info, so be sure you have the form filled out and ready to go.

Questions for you: Did the IRS file SFR (Substitute for Returns) for the other 3 years? Will the Installment Agreement be based on the balance due from those SFRs? Just curious.

[New York Enrolled Agent]

New client is having to file back tax returns. ACS is doing a garnishment on his wages starting next week. They told him if he can get 2011 & 2012 to them next week then they will do an installment agreement on past years and take the wage garnishment off.

Are you sure it wasn't the 2010 and 2011 returns???

It makes no sense that ACS would request 2012 at this time.

[geekgirldany]

Thank you for posting.

Client is dealing directly with the IRS and only wants me to prepare the returns. He said 2011 and 2012. Hopefully he is right.

Dave, Sub Returns were filed for the prior years and the installment agreement will be based on those returns.

[DaveinTexas]

Got it

Thank you for posting.

Client is dealing directly with the IRS and only wants me to prepare the returns. He said 2011 and 2012. Hopefully he is right.

Dave, Sub Returns were filed for the prior years and the installment agreement will be based on those returns.

This is probably your plan but I will say it anyway, it might be worth it to file the old returns, as you mentioned and if they can be improved upon, then contact ACS again to fax in the newly prepared returns and negotiate a lower monthly payment if the balance due is lesser than what the SFRs produced.

And if possible and you can convince the client to get you involved (best case scenario), have all 5 returns prepared before the 30th and do as mentioned above, that way you only have to deal with the IRS once more. Just a thought.

Good luck!

[Y2KEA]

Submit all unfiled returns

I don't know how the service can demand a 2012 return when it is not due yet & they are not even accepting or able to process them. Perhaps the TP misunderstood the request. Get a POA & discuss it with ACS. You can not rely on the client to tell you what they heard or what IRS is asking for.

If the client owes 5 years of returns, I would start with the earliest one due. This way if loss carryforwards or NOL's, etc are involved, you don't need to amend the 2011 & 2012 returns they are asking for. If the client can't give the info that old, get transcripts or decline the work.

Sounds like the service is going on SFR's to figure the amount due on the installment agreement.

Not doing returns in order, I feel, is not working within circ 230. You have a responsibility to file correct & accurate returns. Not having the full picture of a taxpayers previous situation is a failure to provide those later returns.

If the TP insists on dealing with IRS direct, I would decline to help them. Just my 2 cents. That's the way I roll. Also don't forget a large retainer as I would. (Be sure to include a the PITA surcharge).

[taxea]

New client is having to file back tax returns. ACS is doing a garnishment on his wages starting next week. They told him if he can get 2011 & 2012 to them next week then they will do an installment agreement on past years and take the wage garnishment off. Then I will prepare the prior years later.

So 2012 return, should I just let ACS handle the filing of it? Or does it still need to be efiled? I feel kind of silly asking this question but not sure since ACS is involved and they will have it before the 30th.

Thanks
dany

My experience has been Elf it and also fax or mail a copy signed by you and client to ACS. Dont count on ACS to file it. Also...don't count on your 2848's to get to CAF when you fax it directly to a department you are talking with. Some of the "agents" forget to send a copy to CAF. To be sure CAF gets a copy....fax one yourself.