I dug too deep

[Janitor Bob]

New client pops in on Sunday afternoon...I review his stuff W-2, interest, Sch C, Sch E...I figured this would be one large return, but easily completed without extension as long as I had all the needed information....So I Sit down with client and start digging for information....I ask for a copy of his return for last year.

"I did not file last year" he states.....Hmmm..OK...we need to get that done ASAP....

"In Fact, he continues....the last time I filed, the tax return said 2003".

....CRAP....now I gotta get the 2004 return filed by 04/15, or client will lose that potential refund...So it looks like an extension for 2007 and my tax season does not end as neatly as expected.

[JohnH]

I'll be he hasn't told you abou ihis side job or unreported income yet.

He will spring that on you at the last minute.

Then you will have to undo everything you did up to that point.

[Janitor Bob]

I'll be he hasn't told you abou ihis side job or unreported income yet.

He will spring that on you at the last minute.

Then you will have to undo everything you did up to that point.

Actually....I kept digging and discovered that he did home improvemnets for people on the side to the tune of approx...$4,500.00...hence the Sch C....

Actually, the guy kept very nicely completed and organized records of all of his income and expenses...both Sch C and rental activities neatly separated and detailed....

After speaking to him, I realized that he is actually very intelligent and very good with numbers and tax-related subjects...He just did not have time to file and went through both of his parents being very ill over the past 4 years (with both passing away at different points during this time.

....Man...now I went from being annoyed at his stupidity to feeling bad for him.

[OldJack]

Well there is such a thing as due diligence for the current tax return you have been engaged to do, but digging into past tax years is not part of that. Unless the taxpayer brings up the subject of not file prior years why would you at a time like now? Now that you know you have to prepare those returns but only if the taxpayer request you to do so.