You hired an accountant. You sent them your information. They prepared the return. Maybe you even signed the e-file authorization.
So the return was filed, right?
Probably. But you should still confirm.
We have seen a few situations recently where a client believed a tax return or extension had been filed, only to find out later that it wasn't.
Sometimes there was a miscommunication. Sometimes a return was submitted but rejected. Sometimes the accountant and the client simply had different understandings of who was responsible for the next step.
Things happen.
Unfortunately, discovering that six months later doesn't necessarily make the tax consequences disappear.
01Reliance on a Professional Doesn't Erase Your Responsibility
The IRS is fairly direct on this point. Relying on a tax professional generally does not, by itself, excuse a late filing. Taxpayers are still responsible for meeting their filing obligations even when someone else handles the tax work.
That doesn't mean your accountant has no responsibility.
Your accountant may be responsible for doing the work. You are still the one who needs to know it was filed.
The same applies to extensions.
If your accountant tells you a return or extension was filed, ask for the filing confirmation. If your accountant doesn't routinely provide confirmations, specifically request one.
And actually open it.
Check the taxpayer or company name, tax year, form, filing date and, most importantly, whether the filing was accepted.
02“Submitted” and “Accepted” Are Not the Same Thing
An electronic return or extension can be transmitted and then rejected. Rejections can happen for relatively mundane reasons, including mismatched identifying information.
The important point is that proof of transmission and proof of acceptance are not the same thing.
So if your accountant says, “We submitted your return,” there is one more question worth asking:
Was it accepted?
For an electronically filed return or extension, request the acceptance acknowledgment if it wasn't provided automatically and keep it with your tax records.
03What If the Return Was Mailed?
Not every tax filing is electronic.
If your accountant mailed a return or other tax form for you, ask for the mailing confirmation or other proof of timely mailing and keep it with your records.
If you mailed something yourself, save the receipt and tracking information. Send a copy to your accountant too.
That documentation may not seem important today. But if a notice arrives a year or two later, you or your accountant may need to figure out exactly what was filed, when it was sent and whether the IRS received it.
A tracking number you threw away two years ago is much harder to reconstruct.
04The $25,000 Risk for International Founders
For many startups, a missed filing may not seem particularly scary because the company had a loss and owed $0 in federal income tax.
International reporting can be a very different story.
For example, a company required to file Form 5472 can face a $25,000 penalty for failing to file a complete and correct form by the due date. Additional penalties can apply if the failure continues after IRS notice.
We have seen clients come to us after discovering significant foreign reporting penalties where there was confusion about what had been filed or what was supposed to be filed.
That's a painful way to learn that $0 of tax due does not mean $0 of filing risk.
05Make Confirmation Part of Your Tax Routine
You don't need to understand every line of an IRS acknowledgment. But whenever a tax return or extension is filed for you or your company, you should be able to answer:
What was filed?
Was it accepted, or if it was mailed, do I have proof of timely mailing?
If you can't, ask.
And when you receive the confirmation, don't just save the attachment. Open it.
Five minutes spent checking a filing confirmation is a lot easier than trying to reconstruct what happened after a penalty notice arrives.
Tax 101: never assume it was filed.
This article is general information, not tax or legal advice. The rules are fact-specific, change over time, and depend on details unique to your company. Talk to us about how they apply to your situation.