As the deadline for filing Form 1040 for 12/31/18 is approaching, (October 15, 2019) I am sure that most of you have already filed your return and paid the tax. What happens if you have not filed the return for December 31, 2018. I can give you some free advice: file the darn return! If you do not file the return, the IRS will FILE a Substitue for Return, (SFR) for you, usually about two years after the original tax return would have been due. THIS IS NOT A GOOD THING, as the IRS will prepare the SFR without taking any deductions or exemptions the taxpayer is entitled to. For example, let's say you are a real estate broker and have received 1099-MISC in the amount of $200,000. The IRS has this information and will use the ross income of $200,000 and NOT INCLUDED ANY EXPENSES YOU HAVE.
If you find yourself with SFR's and unfiled returns, please call me to resolve your IRS issues.
MaryAnn Schoolden, CPA
954.474.1539
