@FI60 Some suggestions / comments regarding your follow-up question(s):
- It may be possible to handle the voluntary disclosure (VD) process without outside help, however, a tax professional generally sends a letter to the respective state on an anonymous basis requesting the VD. This way if it is not accepted, the taxpayer has not been disclosed; you still have the exposure, but you have not been specifically identified.
- I would recommend you prepare all back returns that have not been filed to determine the actual tax liability. This will determine whether you want to involve a tax professional or are just comfortable filing the back returns knowing you will most likely receive a follow-up letter assessing penalties and interest.
- Obviously most of these may need to be filed via paper. Anything you send, I recommend you send certified mail return receipt requested. This assures you that the returns were received.
- You can certainly respond back requesting abatement of the penalties indicating you were not aware of the filing requirement until recently. You will still owe the interest on any late payment and possibly late filing. Just don't know at this point.
- Generally when a tax professional sends the anonymous request they initially ask for 3-4 years to try and limit the back returns exposure.
- Additionally, there will most likely be other forms that need to be completed, so having a tax professional involved could be beneficial.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
