I have been approached by a prospective client who has not filed any Federal or State (California) tax returns since 1988 (yes - 1988, not 1998).
The client, based on a general discussion, had modest Schedule C gross income (approx. $25 per year) in all of these many open years.
He has good tax records for all years so we could verify each year whether or not he had a net refund due (if so, most years would be closed and we would/could not file) or net tax payable (would have to file).
I would very much appreicate any insights you may have on:
1) Getting prior year tax forms:
I use Lacerte and I have the last three years currently available on Lacerte. I know the IRS has tax returns on their website going back to 1990. Any suggestions for 1988 and 1989?
Any suggestions going back beyond the past three years (i.e., other software providers)?
2) General approach with client and IRS:
Besides advising the client as to the various penalties and interest due in past years where there was a net tax payable any other suggestions for the client and how to approach this very long period without having filed tax returns?
Also, have any of you worked with the IRS beforehand to let them know that a number of back tax returns are coming from one taxpayer or do you simply file the returns?
Thank you very much in advance for all of your insights.
The client, based on a general discussion, had modest Schedule C gross income (approx. $25 per year) in all of these many open years.
He has good tax records for all years so we could verify each year whether or not he had a net refund due (if so, most years would be closed and we would/could not file) or net tax payable (would have to file).
I would very much appreicate any insights you may have on:
1) Getting prior year tax forms:
I use Lacerte and I have the last three years currently available on Lacerte. I know the IRS has tax returns on their website going back to 1990. Any suggestions for 1988 and 1989?
Any suggestions going back beyond the past three years (i.e., other software providers)?
2) General approach with client and IRS:
Besides advising the client as to the various penalties and interest due in past years where there was a net tax payable any other suggestions for the client and how to approach this very long period without having filed tax returns?
Also, have any of you worked with the IRS beforehand to let them know that a number of back tax returns are coming from one taxpayer or do you simply file the returns?
Thank you very much in advance for all of your insights.
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