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If I need to file a past state tax return that requires an attached federal return that hasn't been filed, what can I do?

Los Angeles, CA |

So I'm in a tight situation with an approaching deadline from my state to turn in my state income tax return from a couple years ago. That return and my federal were never filed to due an issue I had with a tax preparer (they did not actually file the returns, have no idea why) Also I want to re-do them since I have found additional deductions.

If the state return requires my fed return but that one hasn't been filed yet, can I mail in the fed return and then a few days later mail in the state return? I also have 1099s that were not filed as well though copies were given to the contractors. Yes a mess but I am trying to do things right now and need some legal or tax advice. I'll take a referral too, thank you so much.

I have already been granted one 4 week extension.

Attorney Answers 3

Posted

You have not clearly indicated the nature of the returns that you need to file. Are you in business? It appears that you were based on your failure to file you 1099's for your contractors. Will you have a schedule C on your return or do you have an LLC?

You should immedialtly file your state return with the federal return attached whether or not you have filed the federal return. Most computer programs do not allow you to prepare a state return without processing the federal return, so you will have the federal return in any event.. It does not matter what order the returns are filed - just file them.

Prior year returns are routinely prepared by my office.

Good luck!
Phillip M. Smith Jr.
Los Angeles Tax & Business Attorney
Licensed in the United States Tax Court
www.culvercitytaxandbusinesslaw.com
www.corporateattorney.com
www.worlclasslawyers.com
Main: 323-292-4116 ❘ Cell: 562-505-1004

THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is philsmithjr@worldclasslawyers.com.

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Asker

Posted

Thank you for your reply. I was wondering if this was the same case when we've been given a Notice of Proposed Assessment from the Franchise Tax Board? They're basically giving us an estimate on what they'll bill us if we don't file by their deadline. A deadline which we got extended by 4 weeks currently. Do you believe we'll get another extension? Thank you.

Phillip Monroe Smith

Phillip Monroe Smith

Posted

I have no idea if you will get another extension because you have not indicated what reason you will provide the FTB for another extension. I do know that If you provide them with a frivolous reason, they will deny your request. Penalties for not filing 1099's or late filing increase with time, ranging from $30 to $100 per 1099 not filed or incorrectly filed. So for simply not filing them at all, the penalty is $100 per 1099. If you file an incorrect 1099 form, but correct it by Aug. 1, the IRS will usually forgive the penalty. On the other hand, if the IRS can show "intentional disregard" of the filing requirements or the accuracy of the information, the minimum penalty is $250 per 1099 form.

Asker

Posted

Wow, some hefty fines. I really didn't know those had to be filed, left one of the office workers in charge of those and they didn't get filed. Thank you for your help.

Phillip Monroe Smith

Phillip Monroe Smith

Posted

These are not "fines," they are penalties. The distinction is that the IRS regulation provides for relief (aka "abatement") of penalities if you can show "good cause" for why the 1099's were not timely filed.

Asker

Posted

Ok, thanks for clearing that up. I marked your answer as best answer. Thank you.

Phillip Monroe Smith

Phillip Monroe Smith

Posted

Thanks! Have a wonderful weekend.

Posted

Your solution is very simple - get the federal and state returns prepared and filed immediately. They can be submitted simultaneously and both the state and the IRS will grant extensions allowing for the necessary time to file (even after you already have received one). Regarding your 1099's, the same applies. Get them filed now. In both cases, the sooner you get things filed the better. We see these types of situations on a regular basis and while it seems difficult, things can easily be handled in short order to clear up any issues.

Feel free to give us a call if you need assistance.

Good luck.

Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.

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Asker

Posted

Thank you for your reply. I was wondering if this was the same case when we've been given a Notice of Proposed Assessment from the Franchise Tax Board? They're basically giving us an estimate on what they'll bill us if we don't file by their deadline. A deadline which we got extended by 4 weeks currently. Do you believe we'll get another extension? Thank you.

Evan A Nielsen

Evan A Nielsen

Posted

Very likely you'll be able to get another extension - we get them on a routine basis.

Asker

Posted

Thank you very much. We'll give them a call.

Posted

You will need to prepare the Federal income tax return and attach it to the state return. To not do so would be to file an incomplete return. You should consult with a tax attorney and discuss your issues with this process.

H. Daniel Lively, Esq., LL.M., CPA Certified Tax Specialist, CA Board of Legal Specialization dlively@livelylawgroup.com www.USTaxRescue.com 714-708-2593 Mr. Lively is a Certified Tax Specialist by the State Bar of California Board of Legal Specialization. He can be reached at 714-708-2593 or USTaxRescue.com.Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

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