IRS Collections and Representation

Substitute for Return (SFR) Reconsideration

When you do not file, the IRS can prepare a return on your behalf. It uses only the income reported about you, allows almost no deductions, and usually assigns the least favorable filing status. The balance that results is typically far larger than what you actually owe.

Also called: substitute for return, SFR, the IRS filed a return for me.

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What the IRS version leaves out

A substitute return gives you the standard deduction and little else. Business expenses against self employment income are ignored, so a contractor who received forms reporting gross payments is taxed as though every dollar were profit. Cost basis on investment sales is ignored for the same reason. Dependants, filing status, and credits you were entitled to are all commonly missed.

Self employment tax is calculated on that inflated figure too, which is why these balances get large so quickly.

Replacing it

Filing an accurate return for the year replaces the IRS figure through a reconsideration process. For most people this is the single highest value step available, because it reduces the debt itself rather than negotiating over an inflated number.

It is worth doing before pursuing a settlement or a payment plan. Negotiating a resolution around an assessment that should not exist at that size means paying against a figure that could have been corrected first.

This is likely relevant to you if

The IRS assessed tax for a year you never filed
The balance is far higher than your actual income would suggest
You were self employed and the assessment gave you no expenses
You are being pursued for a debt built on a return you did not prepare

Professionals who handle Substitute for Return (SFR) Reconsideration

Certified Taxpayer Representative^™ holders are listed first, then by membership level. Every listing is a licensed professional reviewed by hand before it appears.

CTR^™Certified Taxpayer Representative^™, Verified

Dan Henn, CPA, CTR™

Daniel Henn, CPA, PA

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Rockledge, FL

IRS Power of Attorney Representation (Form 2848)
Installment Agreement Negotiation
Currently Not Collectible Status
+27 more

Aims to reply within 24 to 48 hours

Accepting clients

National

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Common questions

Can I still file after the IRS filed for me?

Yes. Filing your own return for the year is the mechanism for correcting the assessment, and for most taxpayers it reduces the balance.

Will I get a refund if my real return shows one?

Refunds are subject to a statutory claim period. If it has expired the return can still be filed to reduce the assessed balance, but the refund itself is generally no longer recoverable.

Does filing restart the collection period?

No. The collection period runs from assessment. Replacing the assessment adjusts the amount rather than resetting the clock, and a professional can confirm the dates on your account.

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This page is general information about how the IRS handles this kind of matter. It is not advice about your situation, and no outcome is being promised. Results depend on your own facts. Speak to a licensed professional before you act. The directory is a free member benefit of Tax Resolution Academy^®, and there is no way to pay for a higher position in it.