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Necessary to file a zero-income federal return?

Hello,

I have a client that owes considerable back federal taxes and is currently on an installment plan, paying what he owes out of his savings and his girlfriend is also helping him pay as well.

He had zero income in 2012, as he lived with his girlfriend and she paid all the living expenses (she is employed, he isn't).

Because he had no income for 2012, he'd normally be below the filing threshhold, but is it necessary to file a 2012 return that shows no income in order to stay within the IRS's good graces and not have them revoke his installment agreement?

I had previously heard that if you owe back taxes, staying current with your returns, even if you don't have to file one, is necessary or it could jeopardize your installment agreement. But of course, I should not believe everything I hear.

He does not owe any state taxes and will not be filing a state return.

Thanks in advance for your help.

--- Chris Johnson, EA

Reply to
caj11
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an installment plan, paying what he owes out of his savings and his girlfriend is also helping him pay as well.

the living expenses (she is employed, he isn't).

threshhold, but is it necessary to file a 2012 return that shows no income in order to stay within the IRS's good graces and not have them revoke his installment agreement?

returns, even if you don't have to file one, is necessary or it could jeopardize your installment agreement. But of course, I should not believe everything I hear.

It is not necessary to file a tax return. What is necessary is that he keep current on his installment payment obligation to the Treasury.

Reply to
Alan

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