File Tax Returns to Replace Returns Created by the IRS
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File Tax Returns to Replace Returns Created by the IRS Attorney In Houston, Texas
When the IRS Files a Return on Your Behalf
Failing to file a required federal tax return does not necessarily mean the Internal Revenue Service will simply wait for a taxpayer to take action. In certain circumstances, the IRS may prepare a return based on information available to the government. This is commonly referred to as a Substitute for Return (SFR).
An IRS-created return may allow the government to calculate a taxpayer's liability and begin collection efforts, but it may not reflect the taxpayer's complete financial circumstances. The IRS generally relies on information it has received from employers, financial institutions, businesses, and other third parties. As a result, an SFR may not include deductions, credits, expenses, filing elections, or other information that could have been reported on a taxpayer-filed return.
At Daria Law Firm PLLC, we help individuals and businesses address unfiled tax returns and understand their options after the IRS has prepared a substitute return. Attorney Daria Nwangwu, Esq. works with clients to evaluate their filing history, gather necessary documentation, and determine how properly prepared tax returns may help address an existing IRS assessment.
Ignoring an IRS-created return can allow a tax problem to become more serious. Tax balances may be accompanied by interest and applicable penalties, and unresolved liabilities can eventually lead to collection activity. Filing accurate returns can be an important step toward bringing a taxpayer back into compliance and creating a clearer path toward resolving the underlying tax debt.
Call Daria Law Firm PLLC at 832-861-1030 to schedule a consultation with a lawyer today.
Understanding Substitute for Returns and Your Right to File
The IRS's authority to prepare certain returns for taxpayers comes from Internal Revenue Code § 6020(b). When a person fails to file a required return, the IRS may use available information to prepare a return that can serve as a basis for assessing and collecting tax.
The information used may include Forms W-2, Forms 1099, and other records reported to the IRS. However, the resulting calculation may not provide the same tax treatment that could be available when a taxpayer prepares and files a complete return based on their actual circumstances.
For example, the IRS-created return may not account for all allowable business expenses, deductions, credits, cost basis information, or other items that could affect the amount owed. This is one reason the liability calculated through the SFR process can sometimes differ significantly from the liability shown on a properly prepared taxpayer-filed return.
Receiving an SFR assessment also does not necessarily eliminate the ability to file an original delinquent return. Depending on the circumstances and stage of the case, a taxpayer may be able to submit an accurate return to replace or correct the information used by the IRS. The agency can then review the filed return and determine whether the previously assessed liability should be adjusted.
The procedural posture matters. A taxpayer may have already received notices, had taxes assessed, or entered the collection process by the time they decide to address their unfiled returns. Our attorney reviews the complete situation rather than treating the filing as an isolated issue.
We can examine IRS notices, account information, available income records, previously filed returns, and other relevant documentation to determine what needs to be filed and what additional issues should be addressed.
Getting Back Into Tax Compliance
Filing delinquent returns after the IRS has created substitute returns can be an important part of resolving a larger tax problem. At Daria Law Firm PLLC, our goal is to help clients move from uncertainty toward a clear strategy for addressing both their filing obligations and any resulting tax liability.
The first step is often determining which tax years remain unfiled and what information is available for each year. Taxpayers may no longer have every W-2, 1099, receipt, or financial record from prior years. Depending on the circumstances, IRS wage and income information, account transcripts, bank records, business records, and other documentation may help reconstruct the information necessary to prepare accurate filings.
For business owners and self-employed individuals, the process can require additional attention. Income and expenses may need to be reconstructed from bank statements, payment records, invoices, accounting information, and other available documentation. The objective is to create an accurate picture of the taxpayer's financial activity while claiming deductions and expenses that are properly supported under federal tax law.
Once the necessary returns have been filed and processed, the taxpayer may still have an outstanding balance. Filing the returns does not automatically eliminate legitimate tax debt. However, establishing accurate tax liabilities can make it possible to evaluate the next stage of resolution based on the correct numbers.
Depending on eligibility and the circumstances, potential options for addressing an outstanding federal tax balance may include an installment agreement, offer in compromise, penalty relief, currently not collectible status, or another available IRS resolution procedure. The appropriate approach depends on factors such as the amount owed, the taxpayer's income, assets, expenses, filing compliance, and overall financial situation.
Taking action can also be important because the IRS has significant collection authority. Unresolved federal tax debt may potentially lead to tax liens, levies, wage garnishment, or seizure of certain assets when applicable legal requirements are satisfied.
Attorney Daria Nwangwu, Esq. helps clients understand where they stand and what steps may be available to move toward compliance. We focus on addressing the immediate filing problem while considering how those filings fit into a broader strategy for resolving IRS concerns.
If the IRS has prepared substitute returns because you did not file, you may still have options. Contact Daria Law Firm PLLC to discuss filing accurate tax returns, addressing IRS-created assessments, and developing a strategy for moving forward with your federal tax obligations.
Take Control of Your Tax Matter Today
Whether you're facing an IRS audit, tax debt, or another tax-related issue, we're here to help. Contact Daria Law Firm PLLC today
at 832-861-1030 to schedule a consultation with an attorney.