Non-Filer Since 1999

[Taxman]

Hope everybody had a nice holiday.

I had someone drop by my office yesterday telling me he has received a letter from the IRS due to not filing his tax return since 1999. In the letter the IRS shows the amounts from 2 W-2's and a 1099. My question is, since he has not filed for the pass 6 years are there any pitfalls I should watch out for besides getting paid up front. I've only had to go back 1 or 2 years for other taxpayers in the past but never this many. Just want to be sure I'm covering all of my bases. Thanks

[lsmith]

Late filings

For the past year, IRS has been finding many non filers and they will be turning over all the rocks out there for a while yet. I would get transcripts from the IRS for each year and file accordingly. This is to long a period for the client to rely on their memories. As far as payment goes, They need to provide payment for each year prior to release to them. The information may be cut and dried, then again involved.

[jainen]

a complete interview

Draft a specific engagement letter stating the limits of your work, including the statement that you can not provide legal assistance and advising the client to obtain separate legal counsel. Carefully probe for any obvious indications that the non-filing history relates to fraud or other criminal activity. Collect a non-refundable retainer and make sure there is a clear understanding about the way fees will be calculated and paid. Get a power of attorney and contact the IRS office that sent the letter, ask for additional time and other help. Prepare individual organizers for each year. Do a complete interview for each year. Collect your fee and ask the client for referrals.