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taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
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Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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This question is for taxmanrog: The IRS audited us for tax

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This question is for taxmanrog: The IRS audited us for tax periods 2008-2009. The IRS agent issued Form 4549-A and 4549-B. We agree on all but one issue which is pending at the Tax Court right now, awaiting decision.
Question: When do we amend the State returns? After the decision from the Tax Court or after the issuance of Forms 4549-A/B?

Hello,

I'm Rachel, and I’m a moderator for this topic. I sent your requested professional a message to follow up with you here, when they are back online.

If I can help further, please let me know. Thank you for your continued patience.

Best,

Rachel

Welcome to Just Answers! Thank you for asking for me, and for giving me the opportunity to assist you! I will do my best to help!

The choice of timing for amending State tax returns is really up to you. You could amend the returns for the items that you agreed with the IRS on. This would stop the interest and penalties that the various states charge on the unpaid balance due. It would also start the statute of limitations running on these issues. Then when the final issue is decided, you an amend once again. This would only be necessary if the issue were not decided in your favor.

Alternatively, you could wait until the USTC makes its final decision, but that could be a year or more away. During this time, the states would continue to charge interest and penalties, increasing your costs.

I hope this answers your question! If you have any more, please let me know. I would be happy to help! If you have found my answer helpful, please rate me highly! I would appreciate that!

Again, many thanks!

Roger
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 525
Experience: Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
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