What should taxpayer do if she can not get spouses information to file return?

[Hamacher]

I have a taxpayer that can not get her husbands tax information to properly prepare their tax return. The husband has a schedule C that normally produces a loss but will not provide the information needed to prepare the return. He is currently out of the country and difficult to get ahold of. They currently have a huge NOL that if filed jointly would result in a nice refund. They have 3 children 13, 15, and 22. What should I advise my client to do: wait until she can get the information even if it's filed late?, File a MFJ return with no Schedule C information and amend later? or file as MFS even though it may result in a tax liability?

Thanks in advance for the help!

[Kram BergGold]

No Choice

File MFS and then someday amend if the husband decides to cooperate.
There is really no other option since the filing deadline is tomorrow.

[kathyc2]

The late filing penalty is based on the unpaid tax. Returns filed after due date with a refund will not have a late filing penalty.

[Hamacher]

Good Point

The late filing penalty is based on the unpaid tax. Returns filed after due date with a refund will not have a late filing penalty.

This is why I was wondering if it would make more sense to simply wait until we get the information.

[JohnH]

This is why I was wondering if it would make more sense to simply wait until we get the information.

I would be very cautious about advising them to wait. No matter how certain you may be that there is a loss and refund, keep in mind that you will own the problem if things turn out differently. This also applies if the return is later audited, which is even more of a problem. In either case, you can be sure that the client will want you to cover any FTF penalties that resulted from the advice you gave them.

I'd urge her to file MFS. Or else I'd return all her information to her with the clear understanding that I don't accept any responsibility for the info or the return until she can provide everything that's needed. (Although doing that the day before the return is due might still leave a door open for them to try and draw you back in if a penalty situation ever erupted).

[ATSMAN]

I agree with JohnH. File MFS and make sure you document the circumstance. I just did a MFS for the husband today where the wife was being uncooperative with the husband, pending separation (both long time clients). For 2015 tax return the wife will have to find another tax preparer

[Golden Rocket]

Both must want MFJ

In order to file MFJ, BOTH husband and wife must agree to do so. And the meaning of "agree" is expanded to include co-operation.

If EITHER spouse does not wish to file MFJ, then BOTH must file separate. Simple as that. This choice is upon them to make and not you.

Haymaker, don't allow THEIR problem to become YOUR problem.

[AZ-Tax]

Mail it in and charge extra

I have a client who files MFS and never gives me his spouse data so I charge him extra to mail in, response to IRS and/or State inquiries etc., I will charge him extra. In fact I get in writing each and every year.

[taxea]

you say "they have a large NOL"....is it from his business, or hers, or both. If it is from his and you can't get any information from his return then file MFS with just her income and deductions and include a letter of explanation.

[TAXNJ]

Pasr

I have a taxpayer that can not get her husbands tax information to properly prepare their tax return. The husband has a schedule C that normally produces a loss but will not provide the information needed to prepare the return. He is currently out of the country and difficult to get ahold of. They currently have a huge NOL that if filed jointly would result in a nice refund. They have 3 children 13, 15, and 22. What should I advise my client to do: wait until she can get the information even if it's filed late?, File a MFJ return with no Schedule C information and amend later? or file as MFS even though it may result in a tax liability?

Thanks in advance for the help!

You said the schedule C normally produces a loss. Are you definite it is a loss for the year in question? Is the NOL a carry forward to the year in question?

Consider what the other reply posters are saying for filing on time.