How To File Multiple Tears of Tax Returns

Multiple Years. Tears are for the family friend who owes.

I would e-file the 2009 returns. I would then have the client hand deliver the other years (federal) to the IRS along w/ a voucher for '09 and request a bottom line. California--is there correspondence from the State for 2007? That seems like the only sticky one, if they've made an assessment that you are contesting and penalties have been paid.

If the returns are mailed, each should be filed in a separate mailing. I would space them out a few days, filing the oldest first.

I disagree with that. All balance due returns should be mailed first and simultaneously. Follow with the refund returns, and note on them "refund to be applied to other years balances due" (in case for some reason they are processed first).

I agree with mailing in separate envelopes for each year. Highlight the year on each Form 1040/540 to help avoid processing boo-boos. Don't just mail to the default filing address, best to call the IRS/FTP using the phone number on the most recent letter you received, and ask what address should the return for that year be mailed to.

The questions about paying now, paying later, waiting for refunds to offset liabilities, etc. -- I think a lot of that depends on what stage of the collection process taxpayer is at for both federal and state, which will be different for each tax year.

The IRS and FTP are probably billing based on one or more substitute returns (SFR), so the whole account will go through some major changes as each return is processed.

You already know he will owe in aggregate for IRS, so might as well pay whatever he can now.

-Mark Bole

My recommendation would be to HAND CARRY all the returns to the local Tax office (IRS and CAFTB), hand deliver them and have the front desk person DATE STAMP a copy of page one of each return. This is your proof of delivery that they can never argue with.

Then request a detailed account transcript - NOT a wage and income transcript - for each year at issue. This will show all assessments and payments to the account. It'll make it easier for you to trace the payments and see exactly where he is.

One issue you'll have is the 06 refund - the normal statute of limitations has expired on getting that refund. That return was due 04/15/07 - plus 3 years takes you to 04/15/10, about 45 days ago. I'd recommend that you ask the IRS to apply that refund against the 2007 balance due - its a reasonable request and they should allow it, though they are NOT OBLIGATED to allow it. If they ask, argue the Equitable Recoupment doctrine. IF he owes for years BEFORE 06 the IRS will apply that refund to those years first, pretty much without question.

If you can't get the client to hand carry the returns, you can do it. Charge for the service, make a few bucks and take the rest of the day off.

When I MUST mail returns like this I put each year in a separate envelope and mark that envelope with the client's name, form number and tax year. Then I put each of those envelopes in a larger envelope and mark it "MULTIPLE YEAR FILINGS ENCLOSED". This usually works, but it is NOT foolproof - fools are much more ingenious than you'd think!

Good luck, Gene E. Utterback, EA, RFC, ABA

The 2006 refund was CA (4 year statute) not the IRS. He owed federal taxes for 2006.

As I am not in CA and the pro bono client (friend of family) is in CA, I have instructed him to hand carry the federal returns to the local IRS office near his home and to hand carry the CA returns to the Los Angeles FTB office.

Since he lives in Los Angeles, note that the two offices in downtown are within walking distance of each other.

The IRS service counter is on the first floor to the north of the lobby (300 N. LA Street - parking is best under the mall between it and the U.S. District Courthouse).

The FTB is on the 5th floor (5710) of the Ronald Reagan building on Spring (2 blocks west and about 4 blocks south).

Thanks for the info.

Or, perhaps, would be if there were such a thing as "walking distance" in Los Angeles.

Seth