NASSAUSUFFOLK

I recently was retained to assist a taxpayer with dementia who has not filed a return since 2006. Her representative has asked me to bring her up to date in filing. I have obtained the wage and income reports from IRS for 2009 through 2012 and will be preparing returns for those years as I have been given a 45 day window by IRS to get those years filed.
The taxpayer had not opened her mail for many years and was not aware that the IRS prepared SFR's for 2007 and 2008 during 2011, assessed tax, interest and penalties and collected them by levying a bank account. I have looked at the IRS wage and income reports for 2007 and 2008 and believe that the tax for those years may be less than the amount computed by the IRS. Is it too late to file returns for 2007 and 2008 or can returns be filed and prepared at this time as the taxpayer never signed a return or consent to assessment? Are amended returns for 2007 and 2008 appropriate? Your input is appreciated.
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Kenneth Altman
KENNETH N. ALTMAN, CPA
Plainview NY
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It sounds like you are still within the window for 'amending' the SFRs. They do take longer to process than a regular 1040X and are processed by a special unit within the IRS.
There also seems to be an internal processing issue at the IRS where the ASFR unit doesn't always get all of the supporting schedules. I found this out while discussing a notice over the phone and was able to fax them over.
If you can speak to the IRS they should be able to extend the 45 days (maybe to 90 days) so that the 2007 and 2008 can also be prepared.

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Sarah Jansen
Sarah Jansen CPA
Bayville NY
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Original Message:
Sent: 08-13-2013 16:03
From: Kenneth Altman
Subject: Subsitute Filed Returns


I recently was retained to assist a taxpayer with dementia who has not filed a return since 2006. Her representative has asked me to bring her up to date in filing. I have obtained the wage and income reports from IRS for 2009 through 2012 and will be preparing returns for those years as I have been given a 45 day window by IRS to get those years filed.
The taxpayer had not opened her mail for many years and was not aware that the IRS prepared SFR's for 2007 and 2008 during 2011, assessed tax, interest and penalties and collected them by levying a bank account. I have looked at the IRS wage and income reports for 2007 and 2008 and believe that the tax for those years may be less than the amount computed by the IRS. Is it too late to file returns for 2007 and 2008 or can returns be filed and prepared at this time as the taxpayer never signed a return or consent to assessment? Are amended returns for 2007 and 2008 appropriate? Your input is appreciated.
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Kenneth Altman
KENNETH N. ALTMAN, CPA
Plainview NY
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