My state of domicile is VA but I have worked as a contractor in Ohio for the last 5 years (starting tax year 2011). I travel to Ohio for a week and then go back home. And then go back to Ohio. I do not have an office or a real estate in Ohio. The problem is that for all those years I was filling taxes only in my home state (VA). It turns out that for all these years I should have filled nonresident Ohio taxes but the CPA's that prepared and signed my tax forms never did so. My income is above average and I have substantial tax liability.
What are my steps now? ======> Whether the mistake to your tax return is the result of an oversight, negligence or blatant incompetence, your CPA may be liable for monetary damages if you decide to file a lawsuit and are successful. You can generally recover any penalties the IRS/state and other tax agencies charge, fees you pay to a different CPA to correct the tax return and, depending on the jurisdiction, you may be able to recover some or all of the interest charges as well. "Some EAs/CPAs will absorb that cost, the penalty cost, because they stand behind their workhowever, As a taxpayer, you ultimately are responsible for the information reported on your return. If an error is made, you will have to pay any taxes that are due. Some preparers may pay associated penalties and interest.what happens between a hired professional (IRS Enrolled Agent. CPA) and their clients isn't really the government / IRS's concern. You're ultimately responsible for your own income tax returns, whether you hire an accountant or not.
Note this: Preparers who are Tax attorneys and CPAs are regulated by state licensing boards and professional associations. Enrolled agents, who pass an IRS exam or are former IRS employees, are regulated directly by the IRS.
Asyou said, and since there is no state reciprocal agreement between OH and VA, you need to pay taxes your OH source income to OH as a nonresident of OH and can claim the taxes that you pay to OH on your VA resident return.However, If you work in OH state and are a resident of West Virginia, then, you do not have to pay OH income taxes on your wages that you earn in OH. Remember The reciprocity agreement applies to employee compensation but not other types of income.
Obviously I will pay estimated taxes to Ohio for 2016 and file nonresident tax return.=====>Correct and unless you?d get your refund, you need to pay penalties and interest to OH state; There are two penalties that can be charged for either late payment and/or non-payment. OH provides for a late payment penalty equal to 10% of the late payment plus twice the interest charged on the late payment. OHprovides for a penalty up to 50% of the tax withheld if payment is not made on or before the due date of the payment.
As for the years 2011-2015, do I file nonresident Ohio return and pay tax and possibly penalties and interest and then file VA amended returns and get refund for taxes paid?=>Correct; I guess it?d be tough work.