Thank you, John, for the information. So far, the IRS hasn't done anything. Just the State has filed an SFR and that was for 2004.
So, what I understand is that I shouldn't file anything older than 2002.
However, should I calculate the depreciation for the "missing years" and continue to depreciate as though he filed those years? He has a retail business and he has residential rental real estate.
Donna Donna L. Loeffler, CPA 936 Church Avenue St. Charles, MN 55972 (507) 251-8119 dllcpa@hbci.com The information in this message, and any files transmitted with it, is confidential, may be legally privileged, and intended only for the use of the individual(s) named above. Be aware that the use of any confidential or personal information may be restricted by state and federal privacy laws. If you are not the intended recipient, do not further disseminate this message. If this message was received in error, please notify the sender and delete it. IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
John Stevens, Equi-Tax wrote:
Donna,
IRS Policy Statement 5-133 pertaining to nonfilers says that you only have to file the last 6 years’ returns, which means that you would file for 2002-2007. If, however, the IRS filed “Substitutes for Returns” (SFR) for any period prior to 2002, I would prepare “Corrected Returns” (the taxpayer’s original returns) for those periods to replace the IRS’s SFR’s, in order to start the statutory running of the Collections Statute Expiration Date (CSED), and possibly to lower the tax calculated on the SFR’s by claiming deductions and possibly changing filing status and claiming extra exemptions for dependents. Note that if the IRS filed SFR’s the Corrected Returns need to be sent to a special address, depending on whether he was self-employed. You can get that address from the IRS.
John Stevens, EA
Stevens Tax & Accounting, Inc., dba Equi-Tax
1870 - 50th St. E., Suite 8
Inver Grove Heights, MN 55077
651-773-5000
FAX 651-457-4529
equitax@unique-software. com
www.equitax.net
From:
taxchat@yahoogroups [mailto:.com taxchat@yahoogroups ] On Behalf Of Donna L Loeffler CPA.com
Sent: 09/30/2008 5:55 PM
To:taxchat@yahoogroups .com
Subject: [taxchat] Hasn't filed a tax return since 1999
I have a client who hasn't filed federal or state income tax returns
since 1999. I am going to order the 1999 tax return from the IRS.
However, I would like any tips from anybody as to what to do and what
not to do before I ask the IRS for copies of anything.
He has a notice from that state that they filed a return for him for
2004. They want the taxes they calculated.
I'm in the middle of a sales tax audit for this guy for 2004-2008. So,
it is really hard to get 2004 done without having the previous years
done first.
I know I sound really disorganized. I feel like I am--I have been
inputting into QuickBooks like crazy, just trying to get a grasp on all
of this financial information that he has been giving me. He gives me
it in pieces as he finds it.
--
Donna
Donna L. Loeffler, CPA
936 Church Avenue
St. Charles ,MN 55972
(507) 251-8119
dllcpa@hbci.com
The information in this message, and any files transmitted with it, is confidential, may be legally privileged, and intended only for the use of the individual(s) named above. Be aware that the use of any confidential or personal information may be restricted by state and federal privacy laws. If you are not the intended recipient, do not further disseminate this message. If this message was received in error, please notify the sender and delete it.
IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
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