How to Rebuild Financial Records for Prior Unfiled Tax Years
Organized historical bookkeeping can give your tax professional a clearer starting point for delinquent business returns.
1. Request Historical Financial Statements
Gather available business bank, credit-card, and relevant merchant-processing statements for the periods you need to reconstruct.
2. Reconcile Historical Cash Inflows and Outflows
Categorize historical transactions consistently. Some transactions may require additional documentation or clarification beyond what appears on a statement.
3. Generate Period-by-Period Cash-Basis P&Ls
Organized Profit & Loss reports can be provided to your CPA, Enrolled Agent, or tax preparer as part of the records they use to prepare delinquent returns. Your tax professional may request additional records depending on the business and return.