Late filer. How far back?

I’m meeting with a potential client this morning whose last tax return filed was 2005. There is no self employment or business income involved. He dropped off his records and they are very organized. Pensions, investment income, itemized deductions. Pretty routine stuff. If I choose to take him, how should I proceed?

-file the previous 6 years. Per IRS policy statement 5-133.
-request transcripts and account records to ascertain any IRS assessment activity.
-charge enough to make it worth my while.
-anything else?

Have you inquired why he hasn’t filed for 15 years? And why he wants to start filing now? Does he even have a filing requirement?

My initial meeting is this afternoon. Those are on my list of questions to ask.

-anything else?

One word: retainer.

I wouldn't help a non-filer without one.

If the records are well organized and all investment tax forms are available, I might look at the older ones for possible capital loss carryovers. There would have to be a lot to make it worthwhile though.

Those are on my list of questions to ask.

They probably shouldn’t be. You don’t have privilege.

If I choose to take him, how should I proceed?

You should tell him about the IRS’ informal 6-year policy, give him options and let him decide. You can stress the 6-year rule, in an effort into nudge him in that direction, even pretty strongly, but you can’t really “advise” him to not file any tax return that is due and owing.

I recognize you will be requesting transcripts and account records but I would ask him if there is any correspondence he received since 2005 and can he provide it to you . (Sfr's,Assessment notices etc.)

See post #8 by skassel

viewtopic.php?f=8&t=16324&p=144559&hilit=unfiled+returns#p144559

As to Jeff's comment, I agree with the professional guidance. But, in reality, the IRS ignores years more than 6 years out.