My situation is this. For years my wife and I received good W-2 wages from our S corp. We paid our fair share of taxes while doing this. 2 years ago it was apparent that our business would not weather this financial storm that was building. We quit taking income out of the business hoping that would help it, it did not.

Last year tax year 09 I had zero income yet continued to pay all personal bills and mortgages out of savings. It was clear that we could not continue to do this and are on the verge of BK. I have 20,000 worth of expenses to deal with for last year but with no income it has nowhere to go.
The question is can we go back and do income averaging on tax returns for past years to try and gain benefit for the money we put out last year on 2 homes and other deductions.

I want to get this done if possible. I would hire a tax pro to do it as well if it makes $$ sense to do so.

Thanks