Fiscal year wrong tax form year

[MarkCTX]

I'm taking on a new corporate client (Form 1120) and the last tax return filed was for the fiscal year 10/1/2007 thru 9/30/2008. However, the previous preparer used 1120 forms for 2008. They should have used 2007 form.s Should I go ahead and prepare the next year (10/1/2008 - 9/30/2009) on 2008 forms or will this confuse the IRS? Too late to amend but that would not solve anything that I can see. Does anyone have any experience in this scenario?

Mark C.

[JohnH]

No personal experience with this issue, but I'd be inclined to file the 08-09 FY return on the 2008 form, just as it is supposed to be done. That way, you're not perpetuating an error. And if IRS requests an explanation, you'll be explaining someone else's error rather than your own. Chances are IRS has already corrected it (or maybe they really don't care), since they are presumably logging the returns by FY anyhow.

(And if I'm totally off base, at least my reply gave your question a bump back to the top of the forum so someone can correct me)

[ATSMAN]

Use the 2008 1120 forms. Does not matter if prior year was filed using an incorrect version. I am assuming the prior year was paper filed?

[Roland Slugg]

Yes, you should prepare the return for the FYE ended 9/30/2009 using a 2008 form ... the year in which the fiscal year began. You may also wish to consider writing a brief letter explaining that the wrong form was used on the previous return and asking your client to submit that letter to the IRS along with the FYE 9/30/2009 F-1120.

[MarkCTX]

Thanks for your comments. I will use the 2008 forms as to do otherwise is simply kicking the can down the road.

Mark C.

[JohnH]

Yes, and it also becomes YOUR can (if you kick it down the road).