Leaderboard

I'm sure that there are SFR's since he has not filed since 2003. I don't feel sorry for him. I am just wondering if filing 10 years of taxes and trying an OIC is the only way to go in this situation, or if there might be some administrative remedy that he could seek. I'm just weighing the options, and I don't work for free!

There are bound to be SFRs so I'd want to see those first, as a starting point, before deciding how/whether to proceed. Also, if he can't "afford" a decent retainer up front, I'd send him down the road, because this mess THAT HE MADE is going to take a lot of time to clean up.

"Problem Exists Between Keyboard and Chair

Jack and John make good points. But you know me. I going to suggest something else. If he can get you records that meet your standard for preparing a timely filed return, and you can get paid to do the returns, I say go for it. I would not worry about how to help him avoid his debt. Or if you feel like helping him out of the crack he got his own tail into, help him do that later. After all, HE'S late at everything, right? I know that's not very sophisticated advice, but I have never understood why we treat a late return differently than any other. I would avoid a lot of hand holding, unless you normally do that for everybody. If he owes $170,000 in taxes, he made a lot more money than I do, and while I was making estimated tax payments, well, you know... And, the part about a family member getting a letter? You might check on the existence of a spouse, cause that's all I can come up with on that one.

Great advice from Jack. This guy probably is going to get mad at anyone who gives him the bad news, which is just beginning. It's going to get a lot worse and it will likely be everybody else's fault. Unless he's expecting an inheritance, he doesn't earn enough to pay for the work he needs done. Best approach is to walk away, unless you like charity work.

How well I remember these days with my three boys......

Since those are still open years I would amend the tax returns to document the carryover.

H-m-m. The family member sent the letter back? He didn't call Joe up and say "Here's something pretty urgent from IRS you may want to see". He didn't even know an address to send it on to his relative. He didn't have any concern at all, just thought "Not my problem, sending it back" Alarm bells are going off left & right. This client is looking more and more like somebody that even his kin don't want to get involved with. Maybe you should follow their lead.

The family member is a parent who happens to have the same first name. When he opened the letter, he realized that the SS# was not his. He sent the letter back.

First requirement for OIC is that ALL tax returns must be completed. This guy's irresponsibility for those years will cost him dearly. Chances are that the IRS has already done an SFR for him. Find out for sure what the IRS has sent him. Is this person currently your client? There is more to the story, you can count on it. Lack of records will only hurt him in this process. He must start re-creating his records. FIRST - Insist on a BIG retainer up front. This will take years to clean up.

This is not one of mine, but just so cute I had to share it.

I always do a personal eyeball review as well as checking the final numbers with my data source forms. I especially look at line 7 total and make sure it equals the individual W2 total. If differenct, I look for the reason. Most of the time, it is my error, sometimes, it's due to the correct things coming from other than a W2.

Two blondes living in Texas were sitting on a bench talking........and the one blonde says to the other. "What do you think is farther ......... Florida or the moon......" The other blonde turns and says "Helloooooooooooooooooooo....can you see Florida?"

64f3e4f95d251c7335d787e2176ce126

I lost my 21 year old last year. I feel your pain at the loss of a Constant Companion. I already had three others though, one of whom sits on my clients laps and demands attention, and two twin lumps o cat that make great foot warmers in the winter (collectively known as 'the fat cats'). Your kittens will provide MUCH distraction from your loss & work! And cheers to you for adopting!