If you haven’t filed your tax returns for several years, the IRS may take matters into its own hands.
This process is called a Substitute for Return (SFR)—and it can significantly increase your tax liability.
What Is a Substitute for Return?
An SFR is a tax return prepared by the IRS using income information they receive from third parties, such as employers, banks, and financial institutions.
But here’s the problem:
The IRS only includes income.
They do not include:
• Business expenses
• Deductions
• Credits
• Filing strategies that could reduce your tax
As a result, the tax owed on an SFR is often much higher than what you would owe if you filed properly.
Why SFRs Create Large Tax Debts
Many taxpayers are shocked when they receive a notice showing a large balance due.
This is because the IRS assumes:
• You are single (even if you’re not)
• You are not claiming dependents
• You have no deductible expenses
In reality, your true tax liability may be significantly lower.
Can You Fix an SFR?
Yes.
In most cases, you can file your original tax return to replace the SFR.
This can:
• Reduce your tax balance
• Remove inaccurate calculations
• Put you back into compliance with the IRS
What Should You Do Next?
If you believe the IRS has filed an SFR for you, the most important step is to file your correct returns as soon as possible.
The longer you wait, the more penalties and interest may accumulate.
Contact Us – Today – Tax Relief Consultation – Jablonsky Tax Relief
🎥 Watch the Full Video
I walk through this step-by-step in the video below:
👉 https://youtu.be/Q57LDgoR6BE
