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I'm waiting for some information before I file tax for the person for the calendar year 2010. He filed for an extension for the calendar 2010 and then 2011 too. The information is still not available to him, and we were wondering, if we should skip 2010 for now and go ahead and file income tax for calendar 2011 (deadline is soon approaching!)? Is there a way to notify IRS that "We aren't just skipping a year! We will come back to it ASAP"?

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  • Are you a tax professional, or are you helping a family member? Sep 14 '12 at 3:14
  • And if you're a professional, you're going to be hit with the OPR penalties, in addition to the taxpayer's penalties.
    – littleadv
    Sep 14 '12 at 3:16
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    @mhoran_psprep I'm not tax professional - just doing it for family.
    – TPR
    Sep 14 '12 at 5:01
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Of course not. Moreover, you're going to be hit with 5% penalty per month for failure to file (with the minimum penalty of $135 or 100% of tax due, the lesser, maximum 25% of the tax due, if more than minimum).

What you should have done, and should do ASAP, is to file the returns based on the information you have (and estimates, if no precise data is available), disclose your problems in a statement attached to the return, and amend, if needed, when the finalized data is available.

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  • I highly doubt he would owe any taxes for the year being skipped (2010), BUT he still needs to file it because of the amount of transactions that took place! He still shouldn't skip the year?
    – TPR
    Sep 14 '12 at 3:27
  • @TPR Of course. He's not in compliance with the tax law, it has various consequences, some may be totally unexpected. Why go there? What for?
    – littleadv
    Sep 14 '12 at 3:34
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    Exactly. Extension (till mid October) then file with what you have. Sep 14 '12 at 5:33
  • @littleadv Actually, that's what I suggested him last year in October 2011 that file with estimates and you can always amend it later if need be. However, his professional tax accountant suggested him not to do so and wait till he gets more accurate information! Maybe the account didn't realize it would get delayed for almost another year!
    – TPR
    Sep 14 '12 at 7:24
  • @TPR it seems that either the account didn't think its going to take that long, or you should switch to another accountant. Ask him again.
    – littleadv
    Sep 14 '12 at 7:26

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