How Aberdeen Filings Fall Behind
Most late filers we see are not avoiding tax. A farm family has a hard year and returns slip; a bookkeeper leaves a dealership; a seasonal business stops filing zero returns after hunting season; or a contractor takes jobs in North Dakota without realising returns are required there. Penalties and interest grow each month, so it pays to act before letters arrive. BOMCAS helps Aberdeen clients rebuild records and prepare the overdue returns remotely. We prepare returns and supporting schedules; we do not represent clients before the IRS, so if you need a representative, we coordinate with the one you choose.
South Dakota penalties and voluntary disclosure are discussed in our statewide back taxes guide. The situations below come from Aberdeen farms, lodges, contractors and North Dakota work.
Our Process
- Request IRS wage and income transcripts and South Dakota account information to see what is on file and what is missing.
- Rebuild the records for each year from bank statements, sales reports, payroll records, co-op statements and settlement sheets.
- Prepare the missing federal, South Dakota sales tax and payroll returns, and any North Dakota returns.
- Calculate penalties and interest so you know the likely balance before filing.
- Set up bookkeeping, payroll and filing calendars so the backlog does not return.
Unfiled Federal Returns
Unfiled personal and business returns usually start with the most recent years, because the IRS generally expects six years of returns to be filed to consider a taxpayer current. For farm families, missing returns often mean missing depreciation records and unreported patronage or government payments. Filing quickly limits the failure-to-file penalty, which is much larger than the failure-to-pay penalty, and unpaid balances may be eligible for an instalment agreement once returns are filed.
Rebuilding Farm and Dealer Records
Farm records often survive in pieces: elevator settlement sheets, co-op statements, crop insurance notices, Farm Service Agency payment letters and loan files. We use these, along with bank statements, to rebuild income for each year. Machinery and land purchases are reconstructed from loan and sale documents so depreciation can be claimed properly, which often reduces the tax owed on the late returns. For dealers and suppliers, we rebuild sales from invoices and inventory counts and reconcile them to the sales and excise tax that should have been reported.
Sales Tax and Hotel District Periods
South Dakota requires a return for every filing period, even with no sales. A seasonal outfitter or lodge that files during pheasant season and stops after can be assessed for the missing periods. Hotels that missed Business Improvement District No. 2 reporting need the district charge calculated by month for stays under 28 nights. Contractors who did not file contractor's excise tax by project can usually reconstruct it from invoices and draws. When tax was collected from customers but not remitted, the issue is more serious and should be corrected first. The Department of Revenue offers voluntary disclosure for businesses that come forward before being contacted.
Payroll Gaps
Unpaid payroll taxes are treated most seriously, because withheld employee taxes are held in trust for the government and owners can be personally liable for them. We reconcile what was withheld and paid, prepare missing Forms 941 or 943 and the South Dakota reemployment assistance reports, and correct W-2s if needed.
North Dakota Returns
Aberdeen contractors, workers and businesses with work in North Dakota often discover years of missed returns there. Individual returns may show little tax because of North Dakota's 0 percent bracket, but nonfiling can still lead to assessments, and businesses may owe withholding, sales tax or Workforce Safety and Insurance premiums. North Dakota's Tax Commissioner has its own voluntary disclosure process. We prepare the North Dakota returns alongside the federal and South Dakota catch-up.
After the Backlog
Once returns are filed, keeping current matters more than any single penalty. A monthly close, scheduled payroll deposits and a filing calendar for each tax account are usually enough to prevent another gap.
Aberdeen Back Taxes and Late Filing Questions
How many years of unfiled returns do I need to file?
The IRS generally expects the last six years of returns to be filed, but each situation differs and earlier years may also be required.
Do I have to file zero sales tax returns after hunting season?
Yes, unless your filing frequency or licence status changes. Returns are required for every filing period, even with no sales.
Can you represent me before the IRS?
No. BOMCAS prepares returns and supporting schedules. If you need representation, we can work with a representative you choose.
What if I worked in North Dakota and never filed there?
We prepare the missing North Dakota nonresident returns. Many result in little or no tax, but filing protects you from estimated assessments.
Talk to BOMCAS About Back Taxes and Late Filing in Aberdeen
Once you are current, monthly bookkeeping and scheduled payroll stop a new backlog forming, and sales tax filing keeps every period covered. Future business and personal returns can then be prepared on a set calendar, with planning to set money aside. If Canadian returns are also overdue, see cross-border tax. Across South Dakota, we also explain business returns, personal returns, sales tax, bookkeeping, payroll, planning and Canada–U.S. tax on our state pages, which start from the South Dakota overview.
Tell us a little about your Aberdeen business or household and BOMCAS will reply with next steps and what we need to quote. Reach us through the contact page or the form below, by phone at 780-667-5250 or by email at info@bomcas.ca. You can also go back to the Aberdeen overview to compare services. This page is general information and is not advice for your own situation.