Q: What happens when the IRS files my tax return on my behalf?
A: A substitute for return or "SFR" can be filed on your behalf if a proper and timely return is not received by the IRS. When this happens, the IRS will file your return based on gross reported income, without the benefit of write offs, deductions and credits. An SFR will typically leave you with a grossly inflated tax liability for that year. SFR's, and the large liabilities they produce, can be avoided by filing your return properly and timely. A good tax attorney can help with the replacement of SFR's with actual returns, as well as settle the adjusted tax liability with a plan based on your ability to pay the debt back.