I have my first tax resolution client. They came in with a CP49 because his 2020 refund was applied to a 2008 tax debt.
I have a 2848 for 2007 to 2020. I don’t have a CAF assigned yet, but I called PPS this morning and found out 2008 was a substitute return filed 11/12/12 and then had additional tax assessed 11/25/13. (CSED of 11/25/2023)
There are also balances due for 2013-2016 and the client did not file returns in 2017 or 2018.
The 2008, 2013, 2014 and 2015 are currently in CNC status.
The current balances are:
2008 – $24,642.75
2013 – $793.90
2014 – $1,962.06
2015 – $1,011.92
2016 – $31.48
This case is way more involved than I had anticipated and I haven’t checked the status of his state and local tax returns yet.
I am a newbie also. I am currently working my first 3 cases. This may or may not be “according to Eric” but here are my thoughts.
Is there merit to preparing a honest 2008 tax return? Will part of the tax debt go away after itemized deductions, business expenses and exemptions? Consider preparing the 2008 return.
Next I would compute the reasonable expectation of collection figure — estimated. Get a quick handle options. If OIC is out of the questions let the people know. Then work to a installment agreement.
I think the path is the same for the State. I have NO experience working with state income tax. Here in Texas we do not have a State income tax. We are taxed on every move and breath we take. Property taxes, sales taxes, liquor taxes, gas taxes, going to the park taxes, hell you even have to pay a $5 tax for entry into a topless bar! Now that is not the worst I don’t know what is.
Goods luck to you. Give me a call if you want to kick an idea around. Look me up on the inter-thing googblely goo.