Substitute for Returns: How to Reopen and Correct Them
If you don’t file a tax return, the IRS may file one for you. This is called a Substitute for Return (SFR). While it keeps your account moving, it’s rarely in your favor. The good news? An SFR isn’t the final word—you can usually reopen and correct it.
What Is a Substitute for Return?
An SFR is created by the IRS using the information they have on file (W-2s, 1099s, etc.). But they don’t include deductions, credits, or exemptions you might qualify for. The result is often a much higher balance due than you would actually owe.
Why Correcting an SFR Matters
You may be entitled to lower tax liability.
Refundable credits (like the Earned Income Credit) won’t be included in an SFR.
An accurate return is the only way to challenge or reduce the IRS’s assessment.
How to Reopen and Correct
Prepare the Original Return: File the missing return using your records and IRS transcripts.
Submit to the IRS: Once filed, the IRS will adjust your account to reflect the corrected numbers.
Monitor for Adjustments: It can take weeks or months for the IRS to process corrections, so stay on top of notices.
Appeal if Needed: If the IRS resists corrections, you may need to file an administrative appeal.
An SFR is not the end of the road. By filing your own accurate return, you can correct the record and often lower your liability. If the IRS filed a return for you, don’t leave money on the table. We can help correct it and make sure you’re only paying what you truly owe.
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