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| *Loan,banking and credit>>>income tax |
What should someon do if they forgot to file for state income taxes last year? |
Do they go ahead and file NOW?....they owe about $500 (and want to pay it!) from last year but failed to file an extension. Should something be done about 2005 before they file for 2006 tax year? Go ahead and prepare 2005 and 2006. Then file them. It's as simple as that. If you are getting a 2006 refund, they will apply it to whatever is owed on 2005. I advise them not to wait any long because interest and penalties are definitely accruing on the 2005 liability. Source(s): I'm a CPA File an amended tax return for 2005 and pay the tax and penalties and then file for 2006. Move to another State quick. No really, just contact your State tax people and explain what happened and they will walk you through it. It's no big deal I did it myself a couple of years ago. Yes, I filed late a few years back and the state where I lived was very diligent in placing a tax lien on my public record, which impacted my credit. In general, you should always file state taxes along with your federal return because you are allowed to take you state taxes as a deduction on your federal return. I would file and pay the the 2005 taxes prior to the 2006 taxes because it will stop the interest and penalties from escalating. I am not sure if it will impact 2006. it doesn't really matter wich one you file first as long as you understand that the sooner you pay what you owe the less fees and interest you will have to pay. |
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