IRS Filed a Return For You in Florida: Understanding Substitute for Return

If you did not file your tax return, the IRS can file one for you. They call it a substitute for return under IRC 6020(b). And they are not doing you a favor. The IRS-prepared return will almost always show a much higher tax liability than if you had filed yourself.

Why the IRS Return Is Always Worse

When the IRS prepares a substitute return, they use the income information reported to them by employers, banks, and brokerages. They do not give you any deductions beyond the standard deduction. No itemized deductions. No business expenses. No credits. No adjustments. Just raw income and maximum tax.

A contractor who earned $100,000 and had $40,000 in legitimate business expenses will get an SFR based on $100,000 of income with zero deductions. The resulting tax bill can be double or triple what it should be.

You Can Still File Your Own Return

Here is the good news: you can file your own return at any time and replace the SFR. Your return with proper deductions, credits, and filing status will supersede the IRS version. The assessment gets recalculated based on your actual numbers. In most cases, the tax owed drops significantly.

Do Not Just Pay the SFR Amount

The worst thing you can do is accept the SFR assessment and try to pay it. You would be paying far more than you actually owe. File your own return first, get the correct number, and then address the real balance.