Hasn’t filed taxes since 2019?!
Recently, a small business owner reached out to me to see if I was taking on new clients. When I asked about their needs, they nonchalantly mentioned they haven’t filed taxes since 2019. I honestly thought they were joking, but it turns out they weren’t.
Edit: Has anyone else encountered a situation like this? If so, how did you assist the client? Any tips would be appreciated!
One response
It can be a bit daunting to take on a client who hasn’t filed taxes in several years, but it’s definitely manageable with the right approach. Here are a few steps you might consider:
Assess the Situation: Start by gathering all relevant information from the client. Understand why they haven’t filed, whether it’s due to financial struggles, lack of knowledge, or something else.
Gather Documentation: Request all financial records since 2019, including income statements, expenses, and any previous tax documents. This will help you get a clear picture of their financial situation.
Determine Obligations: Check what specific years need to be filed and if there are any outstanding payments or penalties owed. The IRS typically allows several years to be filed and has options for clients facing financial hardships.
Engage the Client: Keep them informed and involved throughout the process. It’s essential to build trust, especially since they’re likely anxious about this situation.
Seek Professional Help: If the situation is complex (e.g., they have substantial tax liabilities or are facing audits), it might be necessary to collaborate with a tax attorney or a more experienced CPA.
Develop a Plan: Create a timeline for filing their taxes and addressing any outstanding issues. Help them understand the steps involved and what they can expect.
Stay Updated: Ensure you’re informed about current tax laws, especially if there have been any significant changes since 2019 that might affect their situation.
It’s definitely possible to help clients in this situation if you approach it methodically and with empathy! Good luck!