The IRS Can File a Tax Return on Your Behalf — Reducing a Substitute for Return Assessment by Over 50%

The IRS had filed a tax return called a "Substitute for Return" (SFR) on behalf of a high-net-worth U.S. citizen who was residing in Bogotá, Colombia. Responding quickly and correctly was crucial.

Referred to us by his attorney, he had received an IRS notice stating: "We didn't receive your tax return. We calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions, and others." That is permitted under the IRS code when taxpayers fail to file a timely U.S. tax return.

The IRS states on Notice CP2566: "Keep in mind that this amount may be higher than what you would owe if you filed your own return." Representing the client before the IRS, we were able to reduce the individual's IRS assessment by over 50%.