THE CASE OF “DAGWOOD’S DOG DAYS TURN INTO DOUGH”

Dagwood got divorced in 2005 and hadn’t filed tax returns since 2004. He had three children and each parent claimed one dependent and alternated the third.

We got his tax return in 2007 and immediately filed for refunds for 2004 as the return was in error. Because he and his ex weren’t speaking we had to arrange a cash payment up front for her to sign the amended return. We then filed tax returns for 2005, 2006, and 2007, most of which had refunds. He rented out half a duplex which he owned and the deductions from that were very helpful. When all the dust was settled Dagwood picked up refunds of about $12,000, which was a big pleasant surprise to him.

Uncle Sam was more that happy to send him the $12,000 and get that money back into the economy. Dagwood’s economy was so stimulated that he bought a bigger house and now pays more real estate taxes and utilities than ever before, and sent his children off to college. It’s the American way.

Just because you haven’t filed doesn’t mean you owe.