Do they accept payments right there at the office? Or do they just help you figure out how to pay? My payment is due really soon and I'm getting nervous about penalties.

They don't actually accept payments directly at most locations, but they'll help you make the payment online while you're there. The IRS employee can bypass the normal verification requirements when you're in person with proper ID. They did this for me when I couldn't verify online. If your payment is due very soon, make sure to mention that when you call for an appointment. They sometimes have emergency slots for urgent cases. If you absolutely can't get an appointment before your due date, you might want to mail a check as a backup plan just to show you're trying to pay on time.

Not to be that person but this doesn't actually help OP with their current problem of paying taxes without previous returns. They already know how much they owe, they just need to pay it.

Did your CPA give you advice for the current tax year or just file last year's return? I'm considering one but want ongoing tax planning, not just filing help once a year.

My CPA definitely provided advice for the current year, which was one of the most valuable parts of working with him. After filing my previous year's return, we had a separate 30-minute call specifically focused on tax planning strategies for the current year. He suggested restructuring how I track business expenses, recommended setting up quarterly estimated payments to avoid penalties, and gave me a spreadsheet template for better tracking my crypto transactions throughout the year. Good CPAs view the relationship as ongoing tax optimization, not just a once-a-year filing service.

I used CoinTracker last year and it was decent for basic stuff but struggled with some DeFi transactions and NFTs. It helped organize everything but I still needed to make a lot of manual adjustments. Better than nothing though!

This is such a good point! I made this mistake last year with a CPA who didn't know about my state's special treatment of retirement income. Do you think it's better to find someone local who does online consultations or someone fully remote?

I've had better luck finding someone local who offers online services. They tend to know both the state and local tax situations better while still providing the convenience of remote meetings. A fully remote CPA can absolutely work too, especially if they specifically list your state as one they're familiar with. Just make sure to specifically ask about their experience with your state's tax laws during your initial consultation.

Tax software is fine for filing, but it doesn't help with actual tax planning throughout the year. A good CPA helps you make strategic decisions BEFORE tax time to minimize what you owe. Software just processes what already happened.

That's a fair point. I guess I was just thinking about the filing part and not the planning aspect. Maybe I should look into this too since I'm starting a side business this year and could probably use some guidance on how to set things up properly from the beginning.

Does anyone know if you have to wait for the IRS to process the federal amendment before filing the state amendment? Or can you do both at the same time?

You can generally file both federal and state amendments at the same time - you don't need to wait for the federal to be processed first. However, you should make sure the information matches on both amendments. Some states do want you to include a copy of your federal amendment with your state amendment, so have that ready when you prepare your state forms. And definitely check your specific state's deadline - while many follow the federal 3-year rule, quite a few have different timeframes that could work in your favor.

The only exception I know of is if you were physically or mentally unable to manage your financial affairs during that time. It's called "financial disability" and requires certification from a doctor. It's in Internal Revenue Code section 6511(h) if you want to look it up.

I've heard military members deployed in combat zones get extensions too, and there might be something for people in federally declared disaster areas. But from everything I've read, they're super strict about that 3-year limit for regular situations.

Do you know if there's a time limit for filing these complaints? The taxes were from 2022 but we just found out about the error when we got the IRS notice last week. Also, how would I find out if he has liability insurance? He hasn't mentioned anything about insurance, just offered to pay the penalties.

The time limit for filing complaints with state boards of accountancy varies by state, but typically it's between 1-5 years from when the incident occurred or was discovered. Since you just found out about the error, you should still be well within the timeframe. You can directly ask the accountant if they have professional liability insurance (sometimes called errors and omissions insurance). Most legitimate accounting practices carry this coverage. If they're hesitant to answer, that's a red flag. You can also mention that you're considering filing a complaint with the state board - this often motivates professionals to reach out to their insurance carriers rather than risk disciplinary action or damage to their reputation.

This is good advice. My sister got all her penalties waived when her accountant messed up. The IRS was actually pretty reasonable once she explained and had documentation.