Delinquent Tax Returns Archives - Tax Resolution Specialist Training

If I am preparing a tax return to replace an IRS substitute for return (“SFR”) will my new returns automatically be accepted? Is there a special process to submit these types of tax returns? Do they need to be marked in a special manner?

Like any other type of tax return replacements for SFR’s are not automatically accepted but assuming they were prepared properly, you should not have any issues. These types of returns do not have to be “marked” in any special way but they should be mailed to the IRS SFR Unit and not the standard mailing [...]

If I am preparing a tax return to replace an IRS substitute for return (“SFR”) will my new returns automatically be accepted? Is there a special process to submit these types of tax returns? Do they need to be marked in a special manner?David Karp2016-05-13T13:41:35-07:00

When I obtain a new client, I complete an IRS Power of Attorney (form 2848) so I can obtain a record of their account and if applicable obtain their reported wage and income information. I am not sure which years to put on the 2848 to determine what they owe and which years are unfiled.

To be safe, you should span more years than you think are necessary. For example if your client states they are unfiled or owe from 2006, you should begin earlier and span to at least a year past the current year. For example in this case you may put 2003 through 2016 on the form. [...]

When I obtain a new client, I complete an IRS Power of Attorney (form 2848) so I can obtain a record of their account and if applicable obtain their reported wage and income information. I am not sure which years to put on the 2848 to determine what they owe and which years are unfiled.David Karp2017-04-11T22:23:04-07:00

How do you prepare tax returns without direct proof of expenses?

There are various ways to do this. The best way without having actual invoices and statements is to recreate a client’s books from bank and credit card statements. In today’s technical age most of the transactions on these statements list the payee as well as the amount and date of transaction. In addition it is [...]

How do you prepare tax returns without direct proof of expenses?David Karp2017-04-11T22:23:04-07:00

My client is a delinquent taxpayer with 10 years of unfiled tax returns. If I advise them to file less than all 10 years delinquent tax returns will doing so create an ethical and/or malpractice liability issue for us and what is our exposure to Criminal Investigation (“CI”)?

I do not think that advising your client to prepare only a portion of unfiled tax returns creates any additional exposure to you as a preparer. It certainly should not cause exposure to the IRS CI. The fact is that there is no statute of limitations for someone who has not filed. Would you consider [...]

My client is a delinquent taxpayer with 10 years of unfiled tax returns. If I advise them to file less than all 10 years delinquent tax returns will doing so create an ethical and/or malpractice liability issue for us and what is our exposure to Criminal Investigation (“CI”)?David Karp2017-04-11T22:23:04-07:00

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If I am preparing a tax return to replace an IRS substitute for return (“SFR”) will my new returns automatically be accepted? Is there a special process to submit these types of tax returns? Do they need to be marked in a special manner?

When I obtain a new client, I complete an IRS Power of Attorney (form 2848) so I can obtain a record of their account and if applicable obtain their reported wage and income information. I am not sure which years to put on the 2848 to determine what they owe and which years are unfiled.

How do you prepare tax returns without direct proof of expenses?

My client is a delinquent taxpayer with 10 years of unfiled tax returns. If I advise them to file less than all 10 years delinquent tax returns will doing so create an ethical and/or malpractice liability issue for us and what is our exposure to Criminal Investigation (“CI”)?

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