If you've received a notification from the IRS regarding a Substitute for Return (SFR), it means the IRS has filed a tax return on your behalf due to the absence of a filed return. This situation can be daunting, but with the right guidance, it's manageable. Here are your options if you find yourself in this position in Phoenix, Arizona.

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Option 1: File Your Tax Return

The most straightforward way to address an SFR is to file your original tax return, if you haven't already. This allows you to include deductions and credits the IRS might not have considered. It's often the case that filing your return will reduce your tax liability compared to the IRS's estimate.

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Option 2: Amend the Substitute Return

If you've already filed a return and the IRS issued an SFR because they overlooked it, or if you disagree with their assessment, filing an amended return could be the right step. This involves correcting any inaccuracies or providing additional information the IRS did not have.

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Option 3: Negotiate Payment Terms

Should you owe taxes according to the SFR, you might be able to negotiate payment terms with the IRS. Options include installment agreements or an Offer in Compromise (OIC), where you settle your tax debt for less than the amount owed if you meet specific criteria.

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Option 4: Seek Taxpayer Advocate Service

If you're facing significant hardship due to the SFR process, the Taxpayer Advocate Service, an independent organization within the IRS, can provide assistance. They help taxpayers resolve problems and advocate on their behalf.