IRS SFR - Substitute Filed Returns

If you don't file your returns, The IRS may file for you.

When a taxpayer does not file a return for one year or many years, frequently the IRS will file the return(s) for them. When the IRS files a Substitute Filed Return (also known as an SFR) most of the time the taxpayer will end up owing significantly more in back taxes than if they had filed themselves.

Frequently, IRS Substitute Filed Returns do not take into account all of the allowable exemptions and deductions available to the taxpayer.

When the IRS files a return for you, they are not doing so to to make your life easier or to do you a favor. Without a return filed, no tax debt will officially show up in the IRS records. The IRS files Substitute Filed Returns so that they can assess a tax debt to delinquent filers, contact them about their past due tax returns and begin collection activity if necessary.

When the IRS has filed an SFR for a taxpayer it is most often, but not always, beneficial to the taxpayer to re-file the return and have the back tax debt assessed properly. For people with large amounts owed, this can often reduce the amount of taxes to a level which is more reasonable to pay back. In some cases, however, it may not be a benefit to the taxpayer to re-file the return and it may actually be better to just accept the SFR return filed by the IRS. It is important to consider what your overall plan is to resolve and pay back the tax debt before deciding whether or not to re-file SFR returns.

Washington Tax Services specializes in assisting small businesses and individuals with back tax debt. We will analyze your tax situation and can file back tax returns for you if you have had tax returns filed by the IRS. For taxpayers who no longer have access to their back tax records or who have lost or missing tax records, Washington Tax Services can order many of these records for you and work to prepare a legal tax return that will be accepted by the IRS.

If you have a back tax debt and would like more information on IRS Substitute Filed Returns and assistance in resolving your debt permanently, please fill out the form on this page or contact one of our Tax Specialists at: (888) 282-4697.