Irving Back Taxes and Late Filing

Q: We have remote staff in states we never registered in. What now?

Register now and consider each state's voluntary disclosure programme, which often limits penalties and lookback years.

Fixing Filings in Irving

Irving taxpayers often fall behind in ways they did not expect: an FBAR they did not know about, a stock sale reported incorrectly, a state where remote employees work or a hotel tax audit. We work through these with Irving clients online, one year and one form at a time.

Texas penalties and disclosure options are on the Texas back taxes page. Here are Irving's usual corrections.

Foreign Accounts and Income

New residents often keep bank accounts, fixed deposits and investments in their home countries. Once they are U.S. residents, these must be reported on FBAR and possibly Form 8938, and the income included on the return. Where the omission was an honest mistake, U.S. residents can usually use the IRS streamlined domestic procedures, amending the last three years and filing the last six FBARs with a one-time penalty of 5 percent of the foreign balances. People who reported all the income and only missed the FBAR itself may simply file the late reports with an explanation, which often carries no penalty.

Stock Sale Errors

Employees who sold RSU or ESPP shares may have overpaid because the basis was missing from Form 1099-B, or underpaid because the ESPP discount was not reported. Amended returns can correct either error, with refunds available for three years from the original filing.

Hotel Tax Audits

Hotels that did not tax certain fees, misapplied the 30-day exemption or under-reported room revenue may face assessments from the Comptroller and the city. We review folios and reports to determine the exposure and prepare corrected returns.

Payroll in Other States

An Irving employer that never registered in the states where remote staff live may be assessed for the income tax it should have withheld, along with unemployment tax and penalties. Voluntary disclosure programmes in many states can limit the lookback period and penalties. We register and file the missing returns.

Unfiled Returns

If returns were not filed, the IRS may prepare substitute returns that ignore deductions and credits. Filing original returns usually lowers the balance. First-time penalty abatement may be available for taxpayers with a clean history.

Franchise Tax

A company that skips franchise tax reports picks up a $50 late fee for each report and, after enough time, has its right to do business forfeited by the Comptroller. Officers and directors can then become personally liable for certain debts. Filing the missing reports and paying any tax and penalties allows reinstatement.

Hotel Owners Behind on Property Tax

Hotel properties carry large property tax bills, and owners who fell behind during slow years face penalties and interest that build every month after January 31, plus collection fees if the account is referred to attorneys. Paying the oldest years first, or arranging an installment agreement with the tax office, keeps the property from moving toward a tax sale.

Cash Businesses

Convenience stores and restaurants with large cash sales are frequent targets for sales tax and income tax audits, in which auditors compare purchases to reported sales. Missing records lead to estimates that are often too high. We rebuild sales from purchase invoices, bank deposits and point-of-sale data, and file corrected returns where needed.

Paying What Is Owed

When the balance is known, the IRS offers payment plans, and many individuals and small businesses can set one up online. The Comptroller and TWC have their own payment agreements. Keeping new filings current during a payment plan is essential.

How We Proceed

Request IRS and state account records.
Collect brokerage and foreign account information.
File missing or amended returns.
Choose the IRS or state relief route that fits.
Agree payment terms and keep new filings on time.