Close

Tax News

Unfair Assessments Could Await Those You Who Do Not File Returns.

Share this article...
Unfair Assessments Could Await Those You Who Do Not File Returns.

Unfair Assessments Could Await Those You Who Do Not File Returns.

If you have not filed a return in a while, do not be surprised if the IRS files what is called a Substitute For  Return (SFR).  This assessment is almost never in your favor and can have devastating consequences for potential any resolution options you potentially have.   

What happens after you are sent a Substitute For Return (SFR)?

When this happens, uUnderstand that this it is an audit and is issued as an audit report.  You will have the opportunity to either agree or disagree.  Very few people agree because of how the assessment is arrived.   The auditor will review the transcript and include ALL income items (W-2s, 1099s, etc).  This will include any income items that may not necessarily be income, such as security sales.  The auditor will treat you as single, regardless of your filing status, and provide you with the standard deduction for that year.  In other words, this assessment is clearly not in your favor and would be much improved by filing a correct original return.

Once that auditor has completed this assessment, they will provide you with an audit report.   This is sent to your last known address (the address listed on any prior returns).  Even if you are no longer at that residence, the service has meet its requirement for notification.   The audit service will allow you a period of time to respond.   If you do not respond, they will begin to collect this newly assessed tax debt.

The audit service has the normal collection methods (wage garnishments, bank seizures, assets seizures, etc) to collect this debt. 

NOTE:  Should you consider filing bankruptcy and want to include the debt created by the SFR assessment, it is likely not dischargeable.

Tax Preparation Done Right 5 Things You Need To Know

Late Filed Tax Returns! 6 Issues You Need To Know.

PDF
Printable PDF

Have a Question About This Topic?

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the Terms of Use and Privacy Policy.

NEVER MISS A STORY.

Sign up for our newsletters and get our articles delivered right to your inbox.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

Client Login

 

Refer a Friend

.