Self Assessment statements??

mc25

I know most of you are all busy with hitting the deadline. This week I have just had a good suprise. Filled one of my clients 2010-2011 accounts back in July 2011, so that was done, anyway last week as I always do I thought go through checklist and review all clients account. Guess what when I opened this particular clients account statement, HMRC had issued penalties (which I was not aware of) for late submission of self assessment from 2005-2006, I have only recently started acting as an agent for this client. I rang HMRC and they advised me clients has never filled his 2005-06 returns, what did me was looking at the returns, no other fines have been issued the 1st one was on Mar 07 then next penalty Oct 07 + interest, (why have they only issued penalties for only this 2 year and omitted the other, could this be a mistake also did I tricker the outstanding return by submitting a return last year)I checked with clients and he said he rang them and advised them no longer trading, but never filed the return and he never heard from them so he thought it was all sorted and now they sent him the statement in Dec 2011 which is what i spotted while review the accounts, am in the process of submitting the accounts for this period with a letter.

Have anyone every come across this before? And what are your views?