If you fail to file your taxes, the IRS eventually files one for you — known as a Substitute for Return (SFR). But that “help” isn’t in your favor. The IRS’s version includes all your income and none of your deductions, credits, or exemptions.
The good news? You can still file your own return afterward — and in most cases, the IRS will accept it and reduce your balance.
📘 Official IRS References:
What Is an IRS Substitute for Return (SFR)?
A Substitute for Return (SFR) is a tax return the IRS prepares on your behalf when you fail to file voluntarily. The IRS uses third-party data — W-2s, 1099s, and other income reports — to calculate your taxes. However, because it lacks your actual deductions or credits, the assessment is usually much higher than what you truly owe.
IRS Notices You’ll Receive Before and After an SFR
The IRS doesn’t file an SFR immediately. It sends multiple notices giving you a chance to file first. Here are some of the notices:
| Notice Code | Description | What It Means |
|---|---|---|
| CP59 | First reminder | This is an initial notice informing you that the IRS has no record of a tax return being filed for a specific year. |
| CP515 / CP518 | Final reminder | These are reminder notices indicating that the IRS still has no record of your prior-year tax returns and urging you to file. Last chance to file before IRS prepares SFR. |
| CP2566 | Proposed assessment | This notice informs you that the IRS has prepared an SFR and proposes a tax assessment. It gives you 30 days to agree, file your own return, or appeal the findings with the IRS’s Independent Office of Appeals. |
| CP3219N (Statutory Notice of Deficiency) | Legal notice | If you don’t respond to the 30-day letter, the IRS will send this formal notice. This is your “ticket to Tax Court,” giving you 90 days to formally petition the U.S. Tax Court to challenge the tax assessment without having to first pay. |
💡 Pro Tip: Once you receive CP3219N, you have 90 days to file your own return or petition Tax Court — after that, the assessment becomes final.
📘 Reference: Understanding Your Notice — IRS
What Happens When You File After the IRS Does It for You?
Once an SFR is on record, your IRS account shows an “assessed return” — but you can still correct it by filing your true return for that year. Here are some of the things that happen when you file after the IRS does:
| Action | IRS Response | Result |
|---|---|---|
| You file your accurate tax return | IRS compares it to SFR | Adjusts your account and reduces assessed balance |
| You include proof of withholding (W-2s, 1099s) | IRS validates credits | Credits applied, balance reduced |
| You request penalty abatement | IRS reviews reasonable cause | Some or all penalties may be removed |
| You owe less than SFR balance | IRS issues balance reduction or refund credit | Corrects over-assessment |
📘 Reference: File Past-Due Tax Returns — IRS
How to Replace a Substitute for Return (SFR) With Your Own Return?
The process is straightforward — but must be handled carefully to ensure your return overrides the SFR legally.
Step 1: Get Your IRS Transcripts
Before preparing your replacement return, order:
- Wage & Income Transcript (for W-2s, 1099s)
- Account Transcript (to confirm assessment)
- Record of Account (to verify what the IRS filed)
📘 Reference: Get Transcript — IRS
Step 2: Prepare Your Accurate Tax Return
Use the correct prior-year forms from the IRS website. Include all legitimate deductions, credits, and filing statuses you qualify for.
💡 Tip: Clearly write “Filed to Replace Substitute for Return” at the top of the return in bold letters.
Step 3: Mail to the Correct IRS Address
Send each return separately to the IRS Service Center for your state. Use certified mail with a return receipt.
📘 Reference: Where to File Paper Returns — IRS
How a Tax Attorney Can Help Reverse an SFR?
Filing after an SFR involves both tax law and procedural strategy — especially if liens, levies, or garnishments are in play. A tax attorney ensures your return is filed correctly and immediately triggers the IRS to halt collection on an inflated balance.
| Attorney Action | Impact |
|---|---|
| Retrieve IRS Transcripts | Identifies all SFR years and balances |
| Prepare Correct Returns | Ensures full credit for deductions and credits |
| Communicate with IRS Personnel | Requests holds on enforcement during correction |
| Negotiate Penalty Relief | Files for reasonable cause abatement |
| Request Lien/Levy Release | After new balance posted |
| Legal Representation | Protects your rights if IRS disputes replacement return |
📘 References: Form 2848 – Power of Attorney
Need help with a similar issue? Contact our firm today for a consultation.
An IRS Substitute for Return isn’t the end — it’s a warning shot. You can replace it with your own accurate return, often saving in taxes and penalties. The sooner you file, the faster you can stop IRS enforcement and regain control of your finances.
If the IRS filed taxes for you, or you’ve received a SFR, contact Pelham PLLC today. Our experienced tax attorneys will retrieve your IRS data, prepare corrected returns, and negotiate directly with the IRS to fix inflated balances and release any liens or levies.
FAQs
Can I really file after the IRS does it for me?
Yes. The IRS encourages taxpayers to file their own accurate returns — even years later.
How long do I have to replace an SFR?
You can file anytime, but filing within 90 days of a CP3219N notice may prevent final assessment.
Will I still owe penalties?
You may still owe failure-to-file or failure-to-pay penalties, but many can be abated for reasonable cause or first-time relief.
Can I get a refund after an SFR?
If it’s within 3 years of the original due date, yes. After that, refunds expire by law.
Should I file myself or use a professional?
If multiple SFR years exist or balances are high, hiring a tax attorney is best to ensure legal compliance and negotiation leverage.
