How do I file without an active business license?

Q: Greetings, I am in a bit of a mess....I wanted to ask a few questions. My girlfriend ran my mural/artist business for me a few years ago. After we split. I was lost. I did not file for 2002. My main concern is for last year, 2003. I did not have an active business license. I had no clue what to do and my 2003 renewal was not mailed to me because I moved to Delaware. I need to know what to do first....Obviously, file taxes for 2002 first? Correct? What shall I do for last year with no business license? Do I have to pay major fees or penalties? Please let me know what to do to start to clean up this mess. I have an H&R Block Tax Software disk for computer. Can I file my taxes for 2002 myself? I have receipts and whatnot together. Thank you very much for any responses.....I hope to find the road soon.. —Damon, Fort Lauderdale

The following answer was provided by Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: Normally, preparing and filing the earliest return is recommended, since items may arise that affect the later year(s) (such as credits, capital loss carryovers, charitable deduction carryovers, or overpayments to be credited to the later year from the earlier year). You will need a copy of the 2002 tax program to do that, then roll over the file into the 2003 program and continue the process.

As to the business license, not being knowledgeable in that area, there is usually a penalty that is rarely horrendous - just contact the bureau that issued the original and tell them that you forgot to renew and would like to bring it up to date.