You about a what Substitute for Return (SFR) is all about. What do you do now? You have a couple of options.
- Do not file a return
- File a Return
Do Not File a Return: As far as the IRS is concerned, an SFR is a legally filed tax return. You don't need to do anything for that year if you agree with the IRS. The IRS will ask you to consent to the proposed tax. If you do not reply, The IRS will send you a letter of deficiency and the tax collection process starts.
File a Return: The IRS prepares SFR's from information forms (W-2's, 1099's, third party sources) sent into the IRS. Your tax liability may be too high when the IRS files this way as deductions are not taken into account, esp if you have a business. You will be only allowed one exemption, married filing separate or single and the standard deduction is used. Filing a return with all the income, deductions and credits is the best way to make sure you aren't overpaying in taxes. The IRS will usually adjust your account to reflect the correct figures.
The focus of our practice is helping individuals and businesses resolve their IRS tax problems in the Las Vegas, Nevada, St. George, Utah areas, and elsewhere. If you or someone you know has IRS problems, please contact me at 702-469-9426 or candy@numbercruncherllc.tax
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