There are a wide variety of reasons why you might need to file or amend a prior year tax return. Perhaps you wish to participate in a voluntary disclosure program and wish to avoid penalties. Maybe you have become aware of a potentially significant tax break that caused you to pay too much in taxes. If you need to file or amend a prior year tax return, the CA tax accountants at Smart Services Tax can help.
Filing prior year or multi-year returns has the potential to be very stressful. Whether you owe money to the IRS or you’re simply overwhelmed with organizing tax information for multiple years, having a professional prepare your prior year returns can help you avoid the negative effects of your current tax situation and move one step closer to achieving your long-term financial goals.
We know the most common reason taxpayers put off filing returns: finding and organizing your books, records and paperwork can be a large, time-consuming task. Smart Services Tax is used to this, and we can help! We have a tax organizer to help self-employed individuals put all of their numbers together in one place. If that is not enough, we can also help you get your Quickbooks file in order and/or contact the IRS on your behalf to request a Wage & Income transcript. That way we can ensure your tax returns include all of your income, therefore heavily reducing the chances of an IRS or State audit or notice.
If you need to file a prior year tax return for California State, you may be able to avoid penalties if you are eligible for voluntary disclosure. By submitting an application for the California State voluntary disclosure program, you can file a prior year return and possibly avoid steep penalties. You must meet the following requirements:
- You have not received a past due tax bill for the year or years you wish to file
- You have not been notified that California State plans to audit you for the year or years you wish to file
- You are not the subject of a criminal investigation
- You do not plan to report participation in a tax shelter for the year or years you wish to file
If you earned income and/or lived in California State in a prior year, you must file a return for that year. You do not have to wait until April 15th to file prior year returns. The CA tax accountants at Smart Services Tax can prepare a new or amended prior year return for you at any time. Also keep in mind that you are only eligible to receive a refund up to three (3) years from the original due date of the tax return (in most cases).
Do not wait until you receive a notice from the government, whether federal, state or local. If you do, it could negatively affect the amounts you may owe.
The penalties for failing to file a prior year return — or failure to amend a prior year return if necessary — can also be severe. At the minimum, you will be required to pay penalties and interest. These costs can add up quickly. Jail time is also possible in the most serious cases. The tax accountants at Smart Services Tax can relieve you of this burden and may also be able to reduce or avoid any penalties you currently owe.
The tax accountants at Smart Services Tax have the experience to deliver the accounting & tax services you need. We focus our practice on the five boroughs and have a breadth of knowledge for our local, state and federal tax codes. When you partner with Smart Services Tax, you will always receive personal attention, whether you require simple prior year return preparation or more complex services such as audit representation or CFO services.
Do not spend another night worrying about prior year returns. Schedule a consultation with Smart Services Tax and let us give you the peace of mind you deserve.