Substitute Returns Done by the IRS

When you don’t file your tax returns, eventually the IRS will catch up with you and may even file a substitute tax return for you.  This is usually a bare bones tax return, without deductions and exemptions.  Next, you will get a Notice of Deficiency CP3219N proposing a tax assessment.  You are then given 90 days to file your past tax return or file a petition in Tax Court.  You cannot request an extension once you receive this form.  If you choose not to respond, the proposed assessment will stand and you will be expected to pay.

All is not lost at this point.  Although it is easier and therefore better to complete the past due tax return before the 90 days are up, it would still be in your best interest to complete the past due tax return to take advantage of the exemptions, credits and deductions, which you should receive.  The IRS will usually adjust your past tax return to reflect the correct figures.  This  could save you some money.

It’s never good to ignore doing your tax returns.  We’re here to help.  If you have a problem with past tax returns or your current tax return, we can help alleviate your worries.

Todd Courser 810-245-0813