What is an SFR or substitute for return? Do you have a substitute for return?
It's called a substitute for return (SFR). And it is filed by the IRS if you do not file a return. When the IRS files a substitute for return they will use reported income sources. Think this would satisfy your requirement to file? The IRS prepares your tax return using only income and does not take advantage of any deductions or credits that you would receive. This is called the substitute for return.
I represent taxpayers in Lake City and Florida who have tax issues, and have seen folks coming to us who have substitute for return filed.
The non-filer issue is a priority for the IRS, who have identified more than 7 million taxpayers who failed to file returns, and that the IRS plans to roll-out an initiative to target tax laggarts. Substitute for return is a popular tool.
In addition, it is worth noting that the willful failure to file a tax return is a federal tax crime under the Internal Revenue Code's Section 7203. A substitute for return will often be filed.
So what can non-filers do, and how can we help them get their tax return issue resolved with the IRS? Fix the substitute for return.
If the failure to file the tax returns was a lack of money then we can get those returns filed and begin working on a tax resolution to replace the substitute for return.
If you or someone you know has substitute for return or some other federal or state tax issue, please feel free to contact me at either (407) 287-6638 or by email @pleclaire@nltr.onmicrosoft.com.
Replace your substitute for return.
Patrick LeClaire, Enrolled Agent
Lake City, Florida
Ph. (407) 287-6638
Fax (727) 270-8947
pleclaire@nltr.onmicrosoft.com
