Rental Income but not reported for 7 years, what would you do?

[AZ-Tax]

TP received rental income for past 7 years but never reported it. TP sold the property in 2014 and form 1099-S has been issued to TP. What would you do?

Little clarity, I should add the TP never filed a Schedule E for those 7 yrs.

[David1980]

Well goal #1 for me would be to prepare whichever returns I do correctly. Likely that's just the 2014 return. The question in my head when hearing this is of course why are they bringing up the rental now? Maybe they sold it at a loss and want to deduct the loss and if it were a 2nd personal home they couldn't. That they never previously reported the income would make me a little more skeptical of whether it really is a rental home so I might ask for more documentation than I usually do. But assuming it all checks out and is in fact a rental house I'd prepare the return that way. Then of course I'd advise them about the prior returns that should be amended and let them make the choice on whether or not to do that.