Charles Markham, EA wrote:
- quote -

Second the notion, Charles. I've seen IRS apply those past
refunds to lower the tax on even earlier balance dues.

Cheer$,
Harlan Lunsford, EA in LA

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Andy:

One observation...despite what the rules say against time
barred refunds being lost...I have seen the IRS in a
substantial number of cases take the refund from say a a 98
tax return, and, yes, apply it to the 90 balance due. This
is true even when the 98 refund is time barred. I have yet
to figure out why this *sometimes* happens. (For those of
you who absolutely don't believe me...I can fax you an
example of a notice.)

So...you should definitely send in all the returns showing
refunds. I would just mail them in to the regular address.

You should note that the 1990 assessment probably is about
to run out of time--this is true even if this is an SFR.

I would notify the ACS that I have refunds and that I will
be filing an Equivalent Hearing. This does not suspend the
statute.

I second the motion that you should briefly consult with a
CPA/EA that does a lot of IRS collections work.

Charles Markham, EA

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- quote -

All is all is all.

Good luck.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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heljangal[at]aol.comnojunk (Helen P. OPlanick EA) wrote:

- quote -

Absolutely right, yes. I hadn't realized that the refunds
prior to 2000 were entirely kaput. I thought I'd at least be
able to use them to negotiate a settlement of the pre-90
liability.

Maybe that's why they didn't come after us for so long...;-)

Either way, I'm filing on the last six years, plan to pay
the first six (ie, prior to 12/90), but that leaves the
middle six: '91 - '96. I assume the IRS will come at us with
a bill for that period as well, and thus it would behoove me
to file. I think, too, (and this may be wishful thinking;-),
the disparaties will be smaller: we didn't make as much
money, and so any lost refunds, or liabilities assessed
through SFRs ought to be smaller.

One more question, I read that in order to qualify for
either OIC or installments all *required* returns must be
filed. Now by *required* is that *all* non-filed returns, or
would that be returns for the years specifically requested,
ie, '97 - '02?

Either way, thanks very much for all your help.

Should I ever become an EA, you've got my vote;-)

Andy Katz

amk[at]interport.net
Andrewk271[at]aol.com

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Andy Katz wrote:

- quote -

If you're confident you can do the returns from 97 onwards,
by all means, go ahead and prepare them for filing. HOWEVER,
before sending them in, hie thee to a local tax pro, either
an Enrolled AGent (EA) or Certified Public accountant (cpa_
for a last check that you're doing the right thing. Sound to
me that IRS will be satisfied with those six years, and of
course since they've raised the issue of 1990, expect you to
pay that.

But.... you wo't be able to offset that 12000 plus from 1990
with all of any refunds due from 1997 forward. That's why
you need local help.

If you need a referral just email, removing the "ns" from
the inappropriate place.

Cheer$,
Harlan Lunsford, EA in LA

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"Andy Katz" <amkatz[at]earthlink.net> wrote:

- quote -

Hire someone ASAP. You already have a misconception about
what refunds are due to you, don't delay.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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- quote -

That is so nice. And you will be giving the govt a nice
gift, since the ONLY refunds you are allowed to have (or
apply) are those from 2000, 2001 and 2002. Those other years
are closed and yes, the IRS can assess their taxes and you
must pay them, but you cannot get the money back in any way,
shape or form.

Sorry to be so blunt, but you should have taken care of this
years ago.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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Hi everyone,

Old story here, nonfilers x 18 years or so, never without
p/r taxes withheld. Received a notice from the IRS asking
for 12,000 + for the year ending 1990. Okay. While in
communication with them, they indicated that they were
looking principally to have us file (well, my wife actually,
though we file joint returns for the state) from '97 to the
present.

I'm finishing that up, just using simple 1040 with
deductions for me, my wife & our son. As such the six recent
tax years show an overpayment along the lines of 12,000.00
or so.

Naturally I'm interested in possibly using the above money
owed us from the recent six year period to settle debt owed
by us for the first six year period.

Before I speak to the IRS again, or hire a professional
(tried that once, got a lawyer and CPA whole real estate and
didn't know the first thing about the IRS), I'd like to get
a sense of what liabilities, if any, we'll incur over the
last six year period. There will non-filing penalties, I'm
sure. But what about interest? Particuarly as there was no
tax owed.

I also wonder if it would be desireable to reduce the debt
from the first first six-year period by filing, even though
we're not officially requested to do so. I'd have to obtain
any W-2 info from the IRS itself. The original employers are
scattered to the four winds.

Or should I just try to use the recent six to pay the remote
six?

Finally, I expect them to come back with a bill for the
middle six years (91 - 96). These I can file on, and
possibly reduce the amount owed, possibly even breaking
even, the late penalties cancelling out the unpaid refunds.

Couple questions: I have tried contacting professionals. The
real estate lawyer who proved to be a waste of time and
300.00 was local. I've also talked to people on the web
(years ago one explained that six years back was usually as
far as the IRS went for non-filers, but they still collect
any taxes or other fees owed, regardless of how far back).
Usually they want to do more for me than I think I need, and
certainly any money I pay them means less toward settling
this once and for all.

So I wonder if I shouldn't get all the material I can
together, get a sense of what is owed and what is paid, and
then hire someone to negotiate the final settlement. Would
that be worthwhile, or would it come out pretty much the
same if I did it?

TIA

Andy Katz

amk[at]interport.net
Andrewk271[at]aol.com

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