2005 Question?

[SueBaby]

I'm probably not responding correctly to what's been said, but here's what I "think" I would do.

It doesn't matter what the IRS agent said - I'd tell the client the $14,000 should be reported in the year received. Amended doesn't come into it at all. She didn't file and should file in that year.Leave it up to the client but the next step will make filing 2005 very important.

Then deal with 2006. If the IRS doesn't have the 1099 it doesn't matter if the guy put 2006 on it. If the 2006 return is correct the way it stands leave it alone. If you think the 1099 will be sent to the IRS with 2006 on it, then you could amend filing it in and out stating briefly that the $14000 was reported for 2005. Or if the return is correct the way it is you can wait for the IRS letter and explain at that time the money was reported correctly in 2005.
Your only other choice is to ignore that money which shouldn't be done. If the client filed 2006 and doesn't want to file 2005 that is up to them. But since they told you the money came in 2005 you can't file 2005 without it.

That is what I did filed the $14,000 in 05. If letter I will deal with it whenever. Thanks for all the input on this matter; it has been a hair pulling situation and like pulling teeth out with your fingers with some people and with their problems; Thanks again!

[FEDUKE404]

IRS was wrong?

I still find it hard to believe the IRS said you cannot amend a 2005 income tax return.

Basic Tax Prep 101 asserts you have three years from the last allowable filing date of the relevant tax return. Ignoring any extension issues, for a 2005 return due by 04/15/2006 that automatically carries you to April 15, 2009 which I don't think has arrived yet!

FE

[David1980]

I still find it hard to believe the IRS said you cannot amend a 2005 income tax return.

Basic Tax Prep 101 asserts you have three years from the last allowable filing date of the relevant tax return. Ignoring any extension issues, for a 2005 return due by 04/15/2006 that automatically carries you to April 15, 2009 which I don't think has arrived yet!

FE

I don't find it that hard to believe. Like everyone, they get a "bad apple" time to time who either doesn't care about finding the correct information or doesn't care to find it for you.

After all if something the IRS tells you comes into audit for being incorrect you got what you paid for.