Wednesday, June 26, 2024

Colorado Springs: What If the IRS Files a Substitute Return For Me?


Forget to file your tax return?  Did you think that if you did not file your tax return the IRS would not notice?  Whatever you are thinking, note that the IRS has more information than you realize.  IRS code section 6020 allows the IRS to file a tax return for you with the information they have that includes 1099's, W-2's, and other tax reporting forms.

The question is what can you do if the IRS has filed a Substitute for Return (SFR) on your behalf?

1. Hire a Tax Professional: An Enrolled Agent (EA) that specializes in tax resolution matters can review your circumstances and assist you in taking the proper steps to resolve this tax matter.

2. Gather Your Documents: Collect all tax returns and relevant financial documents, including W-2s, 1099s, receipts, and any other records that support your income, deductions, and credits for the tax year in question.

3. File Your Original Return or Accept the IRS Prepared Return: Depending on your circumstances, you may not even need to file the original return.  Each case is different, especially if you have several years of unfiled tax returns.

4. Respond to the IRS: Work with your tax professional to timely respond to IRS notices.  I recommend sending any mailings certified with with a return receipt. 

Taking these steps can help fix the situation and potentially reduce your tax liability. Always aim to file your returns on time to avoid the complications of an SFR.

 

525 N Cascade Ave., Suite 200
Colorado Springs, CO 80903
(719) 359-8789
success@cashtracksfinancial.com

 

 

 

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