What should I do when filing for back taxes? 5 Answers as of July 10, 2013

I have a friend that is needing to file about 5 years of back taxes and lost all his records (except bank statements as they are on file at the banks) in a house fire that took place late December 1year ago. What needs to be done to get this accomplished. He could enter all bank info for each month and approximate expenditures or should he just contact IRS Rep and try to do a blanket settlement?

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Law Office of Camron Hoorfar, PC
Law Office of Camron Hoorfar, PC | Camron Hoorfar
Good afternoon, In order to fully answer your question, it would be best if your friend made an appointment with my law office to discuss their situation in greater detail.
Answer Applies to: Missouri
Replied: 7/10/2013
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
The IRS cannot and will not make a "blanket settlement" without the tax returns being filed. Your friend should prepare and file them based on available records. He should be careful, however, about claiming any deductible expenses that cannot be supported with evidence.
Answer Applies to: Illinois
Replied: 7/22/2011
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
The IRS does not do settlements unless all tax returns are filed first. He needs to get transcripts from the IRS showing the income made and taxes withheld to get the information to file returns.
Answer Applies to: California
Replied: 7/22/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
This situation needs to be handled carefully when there is a non-filing issue. Remember, non-filers can be subject to civil and criminal penalties in certain cases. Never go to the IRS until you have all your documentation in place. You or your friend need a good tax attorney to assist in the reconstruction of the tax posture and the negotiations with the IRS. Do not try to do this yourself especially with the strategies you are proposing. You are just asking for trouble. Retain a good tax attorney to assist you and your friend.
Answer Applies to: Pennsylvania
Replied: 7/22/2011
David Hoines Law
David Hoines Law | David Hoines
he needs to reconstruct his income and expense and file the return, indicating on each return that he used reconstructive methods
Answer Applies to: Florida
Replied: 7/22/2011
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