October 5, 2020 at 8:19 pm #44054Emmanuel ManaloParticipant
Good afternoon! I just want to get your advice on this case:
1.2011 Tax Year: TP has been in small construction business and he is a sole-proprietor since 2011. His tax preparer filed his 2011 tax year return on Feb. 2, 2018, which left him owing $4,429.43 back taxes plus the interest and penalties. As per the TP’s account transcript, TP is on CNC on August 3, 2020.
2.2013 Tax year: The IRS filed SFR on February 22, 2016, making the TP owing $14,642.05 including the interest. .As per the TP’s account transcript, TP is on CNC on August 3, 2020.
3. TP is non-filer from the tax years 2012,2013,2014,2015,2016,2017,2018 and 2019.
4.TP has no assets, he earns in cash and pays his business expenses also in cash since 2011.
5. Now, TP wanted to start to be in tax compliance status because to process the immigration status of his wife, who is a Mexican national.
1.The CSED for 2011 has been extended to February 2028 when the TP filed his return on February 2018? Same as for the 2013 tax year return when he filed IRS filed SFR?
2.If the 2011 and 2013 tax years are on CNC respectively, should we just do nothing until they finally reach their CSEDs?
3.For immigration purposes, TP is only required to file 3 years of tax returns, but for tax compliance status purposes, 6 years of tax returns to be filed are enough. Filing 2019,2018,2017 could be e-filed but for 2016,2015 &2014 should be paper-filed. ( Could I put 2016,2015 & 2014 each in a separate envelope then put them all in one big envelop when sending it to the IRS?
Thank you very much for your advice.October 5, 2020 at 8:44 pm #44055Keith JonesParticipant
I hope that message finds you doing well.
Your client should start by getting a bank account and getting away from the cash business.
You have time to plan for an OIC as the IRS has classified his debt as CNC.
I would submit an OIC after I filed the 6 years of taxes.
This will give him time to do banking for at least three months which will be needed for the OIC (three months of bank statements).
The 433-A can be drafted to show SOME (a small amount) of assets with the income and expenses cancelling one another out.
I would submit the paper returns in SEPARATE envelopes for sure.
My very first case was a CNC case for a realtor.
It is the only CNC case for me as the client’s RPC improved and the IRS came after them hard.
You may want to look at a S-Corp for the client as well.
I hope this helps!
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