Unfiled Tax Returns & the IRS Substitute For Return (SFR)

It’s important to understand the ramifications of not filing a past due return and the steps that the IRS will take.

Taxpayers who don’t file a past due return or contact the IRS are subject to the following:

  • The IRS will likely file a substitute return for you. But this return is predicated upon the income information reported to the IRS.  Accordingly, if the IRS prepares this substitute for return (SFR), it will not include any additional exemptions, expenses, deductions, or tax credits that you may be entitled to and would consequently overstate your actual tax liability.
  • Various penalties and Interest would be assessed on top of this, subsequently increasing your liability to the IRS.
  • Once the tax is assessed the IRS commences the collection process.  If left ignored, collection activity would likely ensue including: the issuance of a levy on wages or bank accounts or placing tax liens your property.
  • If you never filed your return, there is no end to the Statute on collections, or the time the IRS has to collect on this tax year liability.

Resolution:  Our firm can assist you if you find yourself in this situation.  We can help you file any year tax return, and for multiple years.  Whether you have multiple years unfiled tax returns, or the IRS has already prepared SFR returns for you, we can help remedy this situation.  Call or email us for a free consultation at 201-947-8081 or 646-688-2807, or email us at info@irstaxproblems.com

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