Substitute for Returns: What If You Like the Government’s Numbers?

Most of the time, a Substitute for Return (SFR) is worse than filing your own tax return. That’s because the IRS only includes your income and ignores deductions and credits. But occasionally, people look at the IRS’s numbers and think: “This works out better for me. Can I just leave it?”

The Short Answer

Yes, you can technically leave the SFR in place—but it comes with risks.

Why You Might Like the SFR

• The IRS calculated a lower balance than you expected.

• You’re in a situation where filing your own return would actually increase your liability.

• You prefer simplicity and don’t want to dig through old records.

The Risks of Leaving It Alone

• No Refunds: If you’re entitled to a refund or credit, you won’t get it.

• No Accuracy Guarantee: The IRS may have missed income that could later surface, creating new problems.

• No Legal Closure: An SFR is valid, but it’s not the same as you filing your own accurate return. If challenged, you don’t have the same protection.

• Limited Resolution Options: Certain programs (like Offers in Compromise) may be harder to pursue without accurate self-filed returns.

When It Might Make Sense

In some rare cases—such as if the SFR shows a small balance and you have no credits or deductions to claim—it may be practical to accept the numbers and move forward with a resolution.

An SFR is binding, but it’s not always final. Even if the IRS’s numbers look favorable, it’s smart to have a professional review them before deciding to leave it as-is. If the IRS has filed for you, let us review the numbers. Sometimes filing your own return saves you money—sometimes leaving it alone makes sense. Either way, we’ll help you make the right call.