unfiled 1040NR's

cory · Post by **cory** » Tue Nov 16, 2004 8:17 pm

A nonresident taxpayer has owned an interest in a U.S. limited partnership for several years. He hasn't filed 1040NR's as he understood he was not required to file with only losses to report. Now he has income in 2003 and since most of the returns are over the 16 month deadline, the unallowed passive activity losses should be denied. Do you suggest trying to obtain a waiver to allow the taxpayer to file past due returns or can he just enter the prior year PAL's on the return for the current year. If you suggest the waiver route - how does one proceed with applying for a waiver?
Thank you in advance for any advice.

Wed Nov 17, 2004 7:27 am

I think the best thing to do is to file all of the prior year unfiled 1040NR returns, and then to file the current year return showing the carry over losses.

A return which is never filed is never statute barred, and can normally be filed.

Regards,

Mark T. Serbinski, CA, CPA

cory · Post by **cory** » Wed Nov 17, 2004 7:28 pm

What about the threat that the IRS will deny deductions and impose tax on gross income when returns are not timely filed?

Cory