Need advice on filing 2004 - 2008 federal

Go ahead and file those returns you can right now, esp the 2005 so you can get a refund if one is due. Chances are (NO guarantee mind you) that IRS won't notice the 2004.

However if you can afford it, get the 2004 prepared first to see the damage. Look for an Enrolled Agent (EA) in your area Yellow pages, or check

ChEAr$, Harlan Lunsford, EA n LA

Last word in your sentence: you mean "refund" instead of "return"? Yes, to start the statute of limitations running, it's good to file the return. However, if you were due a refund, then it doesn't matter.

Be aware that there will be interest on the amount you owe. There may be penalties too, which will be 25% of the amount owed in your case, but I think these are waived if you come forth first (could be wrong on this).

No, the only fies are: the penalty of 5% per month on the amount owed to a maximum of 25%, and interest on the amount owed (roughly 6% a year, but it changes every quarter) with no limit.

Yes. The 2005 return was due on April/15/2006, which file the amended return before April/15/2009. No need to wait till 2008.

The order does not matter. However, it's good to do them in order so that you get the capital loss carryover and other carryovers right. For example, if you have a loss of 9k, you can only deduct 3k, and the remaining 6k gets carried over to next year. So obviously you want to do the first year return first, even if it's 2004. If you don't have items of carryover such as stock loss, rental loss, itemized deduction carryover (happens when donate more than 30% to 50% of your income), investment interest carryover, anyone know any others?, then the order does not matter. In particular, if you have only salary, interest, unemployment, then the order does not matter.

Yes.

No idea. Requesting a transcript is expensive (around $50 a return if I'm not mistaken), and there might not even be one on file.

It seems the 2004 return would also have had moving expenses.

In addition to interest at the statutory rate, you will owe failure to file penalty AND failure to pay penalty, EACH to a maximum of 25% of unpaid tax, for any delinquent return with a balance due. You may also owe a penalty for failure to pay estimated tax.

There is no charge for transcripts. Ask at your local IRS office or call 1-800-829-1040.

Aren't the failure to file and pay combined into one with a maximum of

Combined penalties. If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $100 or 100% of the unpaid tax.

What's different between the transcript and copy?

Failure to file and failure to pay penalties accrue monthly beginning on the first day of delinquency (usually April 16 for a 1040) and on the same day of each subsequent month of delinquency. The failure to file penalty of 5% per month applies for the first five months of delinquency, for a max total of 25%. Failure to pay penalty applies for up to 50 months of delinquency, rate varying from .5% to 1% per month, capped at 25% total. When failure to file AND failure to pay both apply in the same month (usually during the first five months of delinquency), the failure to file penalty will be reduced to 4.5% per month. So a return filed and paid 50 months or more late would incur failure to file penalty of 22.5% and failure to pay penalty of 25% of the tax due on return.

Copy is a photocopy of the return filed by the taxpayer or of a substitute for return filed by the IRS. A transcript is a listing of transactions relating to a specific tax form and tax period. If no return is filed, the transcript may show nothing, or it may show credit for estimated payments, delinquency and notice codes, etc. In the OP's case, a transcript will show what actions, if any, the Service has taken concerning the unfiled returns.

If you are subject to the failure to file penalty and the failure to pay penalty, the failure to pay penalty (1/2% per month) would not kick-in until the 6th month.