If you haven’t filed your taxes in a while, the IRS might eventually file them for you. Sounds helpful, right?
Not at all.
When the IRS does your taxes, it’s called a Substitute for Return (SFR) — and it could leave you owing far more than you actually should.
Let’s break down what an SFR is, how it works, and why it could cost you thousands (plus how to fix it before the IRS comes knocking).
What Is a Substitute for Return (SFR)?
A Substitute for Return is a tax return prepared by the IRS on your behalf when you fail to file one yourself. It’s done using information the IRS has — such as W-2s, 1099s, or income reported by third parties.
Sounds simple, but here’s the catch:
❌ The IRS does NOT include deductions, credits, or dependents
❌ They assume you’re single and take zero tax breaks
❌ They calculate your highest possible tax bill
Basically, it’s a worst-case return, designed to get you to file the right way.
💸 Why It Could Cost You Thousands
Because the IRS doesn’t know your full financial picture, an SFR usually leads to:
- A much higher tax bill
- No credits for children or dependents
- No deductions for mortgage interest, business expenses, etc.
- Big penalties and interest on top
For many people, that adds up to thousands (or even tens of thousands) more than what they would have owed with a proper return.
🚨 What Happens After the IRS Files an SFR?
- You’ll receive a Notice of Deficiency (CP3219N), giving you 90 days to respond.
- If you do nothing, the SFR becomes official — and the IRS starts collecting.
- You could face:
- Wage garnishments
- Bank levies
- Tax liens on your property
- Serious damage to your credit
✅ How to Fix an SFR Before It Hurts You
Good news: You can still file your real return — even after an SFR has been issued.
Here’s what to do:
- Gather your income and deduction documents
- File accurate returns for the years you missed
- Include proof of dependents, business expenses, etc.
- Work with a tax professional (like us) to negotiate penalties or payment plans
Once your true return is processed, the IRS will often reduce your tax bill — sometimes dramatically.
🤝 Need Help Replacing an IRS-Filed Return?
We specialize in helping individuals and business owners file accurate back tax returns, challenge Substitute for Returns, and protect themselves from IRS collections.
You don’t need to face this alone — and the sooner you act, the better your options.
🎯 Book Your Free Consultation Now
Let’s see if the IRS has filed an SFR in your name and take the steps to fix it fast.
📅 Book Here
📩 Or visit: World Tax and Accounting