2000 return

[DTS]

I have a new client that has a balance due from '00 in collections with the IRS. I called yesterday to get transcripts for other years and she made the comment that I should possibly amend the '00 return to get the balance reduced, but did not elaborate further when I asked her why.

Am I allowed to do this and reduce the amount owed after all these years? I did not think so. I will if I can, but will not waste any time on this if not allowed to.

Thank you,

Dennis

[jainen]

trying to collect

>>I should possibly amend the '00 return to get the balance reduced<<

Why not, if there was an error on the 2000 return? The statute of limitations only applies to a claim for refund, which you obviously would not be making since they are still trying to collect.

[George Boutwell]

Have any payments been made for 2000 ?

The statute of limitations only applies to a claim for refund, which you obviously would not be making since they are still trying to collect.

Why not try to get back any payments made in the last two years?

[DTS]

Try

Maybe, I'll give it a try. The '00 was self-prepared, MFS, so who knows what's on it. I am supposed to get a copy of it in the next day or two. I'll do a quick calculation and see if it's correct, then go from there.

My confusion was that I was likening it to a correction, which then would become a refund (??) after the limitation period and did not know how the IRS would view this. They took the CA and Fed refunds from '06 and have applied them to the $2,700 originally owed. If I can lessen that amount, that would be nice.

Thank you,

Dennis

[Bill Tubbs]

Get POA

Something I like to do for these old returns is get a POA, then call the IRS and get a copy of the return they have on file, and a copy of all the information returns (W-2, 1099's, etc) that they have on file. That way I know what the current return on file is (I've seen copies of returns and/or amendments that either weren't filed or weren't dated and sifting through all that can be confusing) and make sure that all income is taken into account. Just takes a few minutes and can save headaches down the road. (OK, part of this is: if a client is that far behind, how much do I really trust the information that they're bringing me.)

Bill