In this lecture, we examine a different type of clientele: non-filers. First, we determine what type of non-filers clients can be. Then, we cover the preliminary work that must be done and the research that must be undertaken to understand the case and determine whether or not it should be taken. Assuming it is, we move to the next step: creating an engagement letter.

After that, the lecture examines a variety of topics, including finding missing records, estimating income from expenses, how many previous returns to file and in which order, and how to handle large tax account balances that is too much for the client. In addition to this, we discuss the importance of cooperating with the IRS. We also discuss the futilities of fraud, learning what might happen to individuals if they choose to commit it. Finally, the lecture closes with a vital topic: ensuring that the professional will get paid. Non-filers are an important, but complicated niche of client, and for a professional looking to take their cases, this is not a lecture to miss!

Learning objectives:  To help businesses identify:

• The type of clientele non-filers could be, and the myths and facts surrounding them.


• How to determine the difference between a criminal/deliberate non-filer and someone who is a non-filer due to misfortune.


• Preliminary work that must be performed to determine if a client should be taken on.


• The importance of an engagement letter and early steps in the engagement.


• The process of income estimation if income related information cannot be produced by the client.


• How many previous years’ returns must be filed, and which order they should be filed in.


• Options that exist in the event an outstanding tax balance is too much for the client to handle.


• The importance of cooperation with the IRS.


• The futility of committing fraud, and the legal ramifications on clients (and professionals) that do.


• How to help ensure that they will get paid by their clients.