Unfiled Tax Returns - Substitute For Return

If a taxpayer fails to file a return, the IRS submits what is termed an SFR (Substitute for Return). This is submitted by the IRS for the taxpayer using bank deposits as the taxpayer's gross income. This is the worst form of taxation as it allows for zero deductions and grossly exaggerates a taxpayer's liability. Example: If you are in business and have gross receipts of $300,000 you will be taxed on the $300.000 with no allowance for expenses even if your business made no money that year. You would owe over $100,000 in taxes plus interest and penalties. Additionally, the Statute of Limitations does not begin to run when the SFR is computed by the IRS. Instead, we file a tax return for the business reflecting operating expenses of $350,000. The IRS processes this return, cancels the SFR and reduces the owner's tax liability to zero.

Note: The statute of limitations does not begin to run until the return is actually filed. Returns that are filed on time are generally subject to a three year statute, wherein the IRS has 3 years to audit, assess additional taxes and bring a court proceeding against the taxpayer. Example: If you filed your 1999 return in April, 2000, the IRS usually has until April 2003 to assess additional taxes. In May, 2004 the IRS is generally barred from collecting additional taxes for 1999. Additionally the 10 year statute for collecting these taxes has begun to run and has only 7 years left. Thus, if you have not yet filed your 1999 return, the statute has not begun to run and you will still be subject to the assessment of additional taxes, audit and IRS attempts to collect the taxes.

Thankfully, our staff is current with all changing tax code and procedure. When you call, your assigned strategist will evaluate the specifics of your case, creating a program to bring you current, compliant, and debt free.

Call 1-800-410-8738 and speak to one of our tax professionals today!

When you call, you will be assigned a personal tax strategist who will oversee your case from beginning to end. They will outline the specifics of your case and map out the best solution possible based on your current situation. If you've received any certified mail or other threatening correspondence recently, make sure and tell them so they can take the necessary steps to intervene with immediate action. As a convenience, you can also fill out an on-line application and one of our strategists will get back to you promptly. Don't wait until it's too late! Relief is just a simple phone call or click away.