Which years are still open

[Gizzmo]

I have 2 new clients that haven't filed in 10 years. I was just making sure which years are still open to file to get their refunds. I remember 3 years from the due date of the return. So I would say that 2005, 2006 and 2007 are still open to get refunds. Is that correct ? Since they haven't filed in 10 years how far back would you really file ? I know the one would of received refunds all those years and the other owes for the past 10 years. Any thought on how you would handle this. Thanks for any input.

[Eli]

I have 2 new clients that haven't filed in 10 years. I was just making sure which years are still open to file to get their refunds. I remember 3 years from the due date of the return. So I would say that 2005, 2006 and 2007 are still open to get refunds. Is that correct ? Since they haven't filed in 10 years how far back would you really file ? I know the one would of received refunds all those years and the other owes for the past 10 years. Any thought on how you would handle this. Thanks for any input.

I would say 2004 up to 4/15/08)-2006 + the current filing year.

Eli

[jainen]

>>how far back would you really file?<<

That depends entirely on what the client wants to do. Although the IRS typically only goes back three years, there actually is no time limit if you never filed. Many kinds of problems could require all ten years, including criminal charges, immigration, divorce, contract disputes, property sales, and credit reporting. Sometimes a new religious commitment or a 12-step program calls for getting things straightened out. Even if you can't claim a refund, you CAN claim deductions and exemptions and tax attributes to reduce the amount owed.

[JerryH]

The IRS policy is to enforce 6 years without compelling reason to do more or less. Fraud and or excess of refunds will help determine the number of years to enforce.

[bay]

I have 2 new clients that haven't filed in 10 years. I was just making sure which years are still open to file to get their refunds. I remember 3 years from the due date of the return. So I would say that 2005, 2006 and 2007 are still open to get refunds. Is that correct ? Since they haven't filed in 10 years how far back would you really file ? I know the one would of received refunds all those years and the other owes for the past 10 years. Any thought on how you would handle this. Thanks for any input.

As others have stated their is no statute limitations on returns that were never filed. In regards to refunds on a tax return; must be received three years from the due date - this also includes extensions. So if an extension was filed on the 2004; then the client will actually have until 8/15/08 for tax year 2004 or 10/15/08.

Good luck

[JFH]

Even though you may not get a refund from a return that may exceed the three year period, a refund from a period prior to the three years may be used to offset a liability from another year after. I think I said that right.