Back Taxes

IRS wants six delinquent years as a matter of policy. If there are Substitute for Return assessments on older years an account transcript will clue you in on how much is wages and how much is 1099 (take SE TAx and work backward.) You can use those numbers as gross income and feed in deductions as needed.

This post is about CA. I recently prepared 2005-2007 returns for a client that had SFRs prepared by the FTB for those years. No SFRs by the IRS. the client had losses in those years, and couldn’t open a bank account because the FTB was still trying to collect on the SFRs. She filed the IRS returns just for the statute to run & for peace of mind.