What Can I Do If The IRS Has Filed A Tax Return For Me?

 

A Substitute For Return or an SFR, which doesn’t just happen immediately. You are going to receive a series of letters from the IRS, each one more threatening than the last, asking you to file a tax return.

If you wait long enough, the IRS will actually prepare a tax return for you. The IRS will send you a letter to the effect of, “This is the tax return we’ve prepared for you and if you agree with it, you don’t have to do anything else. If you don’t agree with it, please file a tax return or make adjustments.”

Most people ignore this and the tax return is actually prepared for them on their behalf. By doing so, the IRS is doing what is known as making an assessment.

In other words, they are putting tax on the books that they feel that you owe and once they’ve done so, they go into the collection phase where they try to collect the money they’ve just assessed.

The question really is, what is it that I can do as a taxpayer if they’ve prepared a Substitute For Return for me?

The answer is simple; you still have the right to file a complete and accurate tax return. What I would do in this situation is get the account transcripts and find out the status of your account.

I would get what is called the wage and income transcripts and all of the information that is reported to the IRS. Then I would proceed to prepare a and file a complete and accurate tax return.

When you do so, the IRS will take that return and they will process it and put it on your account which effectively will correctly state the tax that you owe them, if you owe anything at all. It may be that you don’t even owe them any money.