Tax Guru – Ker$tetter Letter

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Posted by taxguru on January 21, 2006


Mr. Kestetter,
I ran across your Web site and was hoping you could answer a question for me. In 2003 I filed a federal tax return but did not file an arkansas state income tax return. I moved out of the state in 2004. But I recently recieved a notice of non-filing from the dfa.
Here’s my question: on my federal return I took a lot of deductions and am thinking twice about taking them again with the state as I do not want to get audited. With just a standard deduction I will be due a refund. But I’m wondering if I just use the short form with the state and take the standard deduction, will that raise any red flags with the IRS because my returns will be different? Also, is my state return likely to recieve heavier scrutiny because it is being filed late?
I would really appreciate your help.



IRS and DFA do share tax data; so I would keep the Ark. numbers in synch with what you reported to IRS. You could open a can of worms for yourself if you try to submit different figures.

Filing the return late doesn’t increase its audit potential. 

DFA doesn’t do the kinds of audits that IRS does.  The only time they will hold up processing a return is if you forget to attach various documents, such as W-2s, 1099s, and Federal schedules.

A qualified tax pro should be able to help you stay in compliance with the DFA.

Good luck.

Kerry Kerstetter


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