Catching Up After Hard Years
A dry year, a hailstorm in June or a run of poor cotton prices can leave a farm family too stretched to file. Other Lubbock cases are simpler: a student who never filed, a royalty owner who did not realise the checks were income. We sort out what is missing and put the filings in order, working remotely.
For voluntary disclosure and Texas penalty rules, see Texas back taxes and late filing; this page is about South Plains cases.
Farm Returns
Farmers who missed filing returns may have had losses that could have been carried back or forward. Filing the missing returns can establish those losses and reduce other years' tax. Farmers who expect to owe can avoid estimated tax penalties by filing and paying by March 1 or making a payment by January 15.
Missed Farm Payroll Forms
Farms that paid workers without filing Form 943 or issuing W-2s may owe Social Security and Medicare with penalties. Late filings can reduce penalties, and reasonable cause relief may apply. We reconstruct wage records and file missing forms.
Unreported Royalty and Lease Income
Royalty owners and landowners with wind leases sometimes miss income reported on Forms 1099-MISC, which the IRS matches to returns. Notices often propose tax without the depletion or expenses the owner is entitled to. We file amended returns with the correct deductions.
Students and Young Adults
Students who worked part time or received taxable scholarships may need to file. Many are owed refunds of withholding. Refunds can be claimed for three years after the original due date.
Franchise Tax and Forfeiture
Farm LLCs and family corporations often stop sending franchise tax reports once they owe nothing, not realising that a no-tax-due report and the information report are still required. After enough missed reports, the Comptroller forfeits the entity's right to do business and, later, the Secretary of State may end its existence. We file the missing reports and request reinstatement.
Agricultural Valuation and Property Tax
Landowners who stopped farming but kept agricultural valuation may face rollback taxes and penalties. Those behind on property tax accrue penalties after January 31. We review the situation and help with filings.
FSA and Insurance Records
Farm income for missing years can usually be rebuilt from third-party records even when the farmer kept few of his own. Gins and merchants issue settlement sheets, the Farm Service Agency reports programme payments on CCC-1099-G, crop insurers issue 1099s and lenders keep loan histories. Expenses can be rebuilt from supplier statements, fuel accounts and bank records. With these, accurate returns can usually be filed rather than estimates.
Paying When the Crop Sells
Farmers often have little cash until harvest. An IRS installment agreement can be set up for most balances, and a payment date tied to crop sales may be possible. Spreading payments too far can add interest, so we plan the payment schedule with the farm's cash flow.
Our Process
- Pull IRS account transcripts and wage and income records.
- Collect elevator, gin, FSA and insurance statements to rebuild farm income.
- Prepare the missing federal, franchise tax and payroll filings.
- Ask for first-time abatement or reasonable cause relief where it fits.
- Agree a payment schedule that matches when the crop is sold.
Lubbock Back Taxes and Late Filing Questions
Can filing late farm returns help me?
Yes. Losses can be established and used in other years.
What if I paid farm workers without filing payroll forms?
File Form 943 and W-2s as soon as possible to limit penalties.
Do I need to report wind lease income?
Yes, it is taxable and reported on Form 1099-MISC.
Can students claim old refunds?
Yes, within three years of the original due date.
Talk to BOMCAS About Back Taxes and Late Filing in Lubbock
After the catch-up, crop-year books, farm payroll and sales tax reports stop the gap from reopening, while the farm return and family personal returns are filed each spring. A plan sets money aside after good harvests, and anyone with foreign accounts or workers should check cross-border reporting. From the Panhandle to the coast, our Texas pages on business and farm returns, personal returns, sales tax, bookkeeping, payroll, planning and cross-border tax set out the statewide rules, gathered in the Texas overview.
Whether it is a section of irrigated cotton, a shop on 34th Street or a household near campus, a short description is enough for BOMCAS to suggest a starting point and list the records a quote would need. Reach us on the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Each Lubbock service is linked from the Lubbock overview. Nothing here is advice for a particular farm, business or family.