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  1. #1
    Join Date
    Mar 2008
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    12

    Default Using the Wrong Tax Filing Status for More then 10 Years

    A relative of mine just realized that her and her husband have been filing the wrong status for the last 10 years +, they have been filing hoh when they should have been filing married filing separately or married filing jointly. What can they do to correct this and will they charge them with fraud. it did not do this intentional, they have been reading all this stuff on line and really don't know what to do. Any help or advice you can provide would be greatly appreciated.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Wrong Filing Status for More then 10 Years

    They can amend the previous three years of returns. If the iRS hasn't caught them by now, they likely aren't.

  3. #3
    Join Date
    Mar 2008
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    12

    Default Re: Wrong Filing Status for More then 10 Years

    Would filing amended return make them look at previous years?

  4. #4
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Wrong Filing Status for More then 10 Years

    Quote Quoting flyingron
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    They can amend the previous three years of returns. If the iRS hasn't caught them by now, they likely aren't.
    I wouldn't say that. Our practice has had clients who made the same major mistake and definitely got caught. Sometimes its not even the IRS that catches them, its other things. If they try to buy a house, or apply for financial aid for their children, or attempt to get a DOT job or any other occasion where they have to produce tax returns.

    OP, they need to get themselves to a tax professional ASAP...get the three years worth of returns amended to see what kind of results they get. Then they can decide whether or not to actually file those amended returns. However, from this point on they need to file married filing jointly or married filing separately.

  5. #5
    Join Date
    Mar 2008
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    12

    Default Re: Wrong Filing Status for More then 10 Years

    Thank you for your advice. They are now looking for a local CPA that can help them. But I have a question, will they be required to amend further then 3 years? Or is just from 2013 til current?

  6. #6
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Wrong Filing Status for More then 10 Years

    Quote Quoting renquin
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    Thank you for your advice. They are now looking for a local CPA that can help them. But I have a question, will they be required to amend further then 3 years? Or is just from 2013 til current?
    They do not need a CPA. They just need an experienced tax professional. Many CPA's are not even that good with tax, because their focus is financial accounting, or auditing or some other accounting specialty.

    In general, the IRS cannot go after you for something that is more than 3 years old, unless they have reason to believe that deliberate fraud was committed. Its possible that they could believe that a couple knowing chose to file as if they were not married in order to defraud the US government, but its also possible that they could believe that it was done out of ignorance.

    I suspect however, that your relatives knew perfectly well that they were doing something that they were not supposed to be doing.

  7. #7
    Join Date
    Jul 2015
    Location
    Florida
    Posts
    301

    Default Re: Wrong Filing Status for More then 10 Years

    The IRS is more likely to scrutinize their situation if they obtained significant tax benefits from filing two returns as heads of household. For example, if a couple splits their $60k in income between two hoh returns, and each take one or two children on their return, they will receive large refunds due to refundable credits like EIC that they are not entitled to. The IRS very well could allege fraud and go back 7 years in a case like that. I have no idea whether this applies to this situation or not, but there is no one answer; it depends on the circumstances.

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