Is Filing Back Returns A Good Idea?

Assuming there was no extension filed for 2007, any refund from 2005 thru 2007 will not be paid. Filing now starts the SOL clock. For 2006 you will lower the amount due by the $30 telephone excise tax credit, which I doubt the IRS included.

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Granted, but what exactly is the point of starting the period of limitations for assessment [for years] where one already has a 90-day letter in hand? Are you implying that since the SoL never started, the

90-day letter has nothing to suspend, so if the case goes to Tax Court, the period starts running upon receipt of the return even while the matter is before the Court? I'm certain that the IRS position would be that they have 3 years + 60 days from the date the Court ruling becomes final because no time came off the SoL.

correspondence from the IRS asking him to file his 2005 - 2009 tax returns. They sent along income information for each year. The taxpayer also has a "Notice of Deficiency" for tax years 2006, 2007, and 2008. There seems to only be a CP59 for 2009 at this time.

know, yet, but there may be a small refund in 2005, or I would think there would be a "Notice of Deficiency" for this return as well....

From a Collection point of view, any future installment agreement or offer in compromise will require full compliance with filing requirements. Also, a Substitute for Return assessment is not dischargeable in bankruptcy. The 3 year bankruptcy discharge statute begins when the return is filed.

This taxpayer will owe taxes for 2006, 2007, 2008, and 2009. He wants to file to claim the one or two (depending on the year) dependent children he is entitled to. The IRS calculations allows him no dependents.

The 90 day letter for 2006, 2007, and 2008 are all dated 02/22/2011....That means the 90 days were up on or about 05/22/2011......NOW WHAT???

Thanks for any help, Marie

to claim the one or two (depending on the year) dependent children he is entitled to. The IRS calculations allows him no dependents.

means the 90 days were up on or about 05/22/2011......NOW WHAT???

IRS Substitute for Return (SFR) processing will generate returns showing single or married separate with one exemption (the Service doesn't know his marital status, can't exercise his option to file jointly, and won't include dependents that he didn't bother to claim). Prepare the returns as they would have been prepared if filed timely. Call the IRS to determine the collection status of the SFR assessments. If assigned to Automated Collection or a Revenue Officer, file the original returns directly with the responsible office or employee. If not yet assessed or if recently assessed and in notice status, file with the appropriate Service Center. Include a cover letter and copies of all previously received notices. Include documentation to support marital status and exemption claims that differ from the SFR assessments. Ensure that the taxpayer now has withholding and/or estimated tax payments sufficient to cover 2011 and subsequent liabilities in full.

2007, 2008, and 2009.  He wants to file to claim the one or two (depending on the year) dependent children he is entitled to.  The IRS calculations allows him no dependents.

means the 90 days were up on or about 05/22/2011......NOW WHAT???

Unless as has been suggested, the case is in the hands of a Revenue Officer or in ACS, the returns should be filed with one of the two SFR units. DO NOT attach a cover letter and DO NOT attach support for anything. It will not help and could hinder processing. Mail each return in separate envelopes.

correspondence from the IRS asking him to file his 2005 - 2009 tax returns.  They sent along income information for each year.  The taxpayer also has a "Notice of Deficiency" for tax years 2006, 2007, and 2008.  There seems to only be a CP59 for 2009 at this time.

know, yet, but there may be a small refund in 2005, or I would think there would be a "Notice of Deficiency" for this return as well....

What if he owes money for 2005 but is getting back on 2006, or vice versa. Can the refund from one year balance the amount owed from the other year, both of which are more than 3 years ago?

Also, in addition to the other posts, for most states the time is 4 years to file an amended return.