Quick Answer: What an IRS Substitute for Return Means in Plantation, FL

An IRS Substitute for Return (SFR) is a tax return created by the IRS when a taxpayer fails to file.
For Plantation, FL residents, SFRs often result in inflated tax bills because the IRS uses only income it can see and ignores deductions, dependents, and credits.
The good news is that an SFR is not final. Filing a correct tax return usually replaces the SFR and significantly reduces the balance.

Polaris Tax & Accounting helps Plantation taxpayers identify SFR assessments, file replacement returns, and resolve the resulting IRS balances correctly.

IRS Substitute for Return (SFR): Why Plantation Taxpayers Get Hit Hardest

Receiving an IRS notice showing a large tax balance can be shocking—especially when you never filed a return for that year.
For many Plantation residents, this situation is caused by an IRS Substitute for Return, often referred to as an SFR.

Understanding how SFRs work, why they create inflated balances, and how to replace them is critical to resolving back taxes properly.

What Is an IRS Substitute for Return?

An IRS Substitute for Return is a return the IRS prepares on your behalf when you fail to file a required tax return.
It is created using third-party income data such as W-2s and 1099s.

The IRS does this to establish a legal tax assessment so it can begin collection.

Importantly, an SFR is not a fair or complete tax return.

Why the IRS Files SFRs Against Plantation Taxpayers

Plantation residents commonly receive SFRs due to:

  • Unfiled returns for multiple years
  • Self-employment income without filings
  • Multiple 1099 sources
  • Stock, crypto, or investment activity
  • Relocation and lost records
  • Prior accountant issues or disengagement

Even if you never received earlier notices, the IRS can still file an SFR once income data is complete.

How the IRS Calculates an SFR

The IRS uses Wage & Income transcripts to calculate an SFR.
These transcripts include:

  • W-2 wages
  • 1099-NEC and 1099-MISC income
  • 1099-B stock and crypto proceeds
  • 1099-INT and 1099-DIV income

Learn how these transcripts work:
How to Read IRS Transcripts.

Why SFR Tax Bills Are So High

SFRs are intentionally conservative and punitive.
The IRS:

  • Does not allow deductions
  • Does not allow dependents
  • Does not allow credits
  • Uses single filing status by default

For Plantation taxpayers, this often means a tax bill several times higher than the real liability.

How to Tell If You Have an IRS Substitute for Return

Signs of an SFR include:

  • A large balance due for a year you never filed
  • Transcript code 150 without your actual return
  • IRS notices referencing “return filed by IRS”
  • CP504 or LT11 notices tied to an unfamiliar balance

These issues often appear alongside notices explained here:
IRS Notices Plantation Residents Receive.

How to Replace an IRS Substitute for Return

Step 1: Pull IRS Transcripts

Confirm which years have SFR assessments.

Step 2: Prepare a Correct Tax Return

Use transcript income data to recreate missing returns—even if original documents are gone.

Step 3: File the Return to Replace the SFR

Once accepted, the IRS removes the SFR and recalculates tax.

Step 4: Address the Remaining Balance

Replacement often reduces tax dramatically, but penalties and interest may remain.

Penalties and Collection After an SFR

After an SFR, the IRS may issue:

  • CP21A adjustments
  • CP504 notices
  • LT11 / Letter 1058

Learn more about CP21A:
IRS CP21A Notice Guide.

When Plantation Taxpayers Should Get Help

  • You have multiple SFR years
  • You owe more than $10,000
  • You received CP504 or LT11
  • You cannot reconstruct records
  • Your prior accountant is unresponsive

How Polaris Helps Resolve SFR Cases in Plantation

Polaris Tax & Accounting assists Plantation taxpayers with:

  • SFR identification
  • Transcript analysis
  • Replacement return preparation
  • Penalty abatement
  • Payment plans and hardship status

Learn more:
Plantation IRS Resolution Services.

Related Plantation Tax Resources

Schedule SFR Resolution Help

If the IRS filed a Substitute for Return against you, ignoring it will only increase penalties and enforcement risk.
Replacing the SFR with a correct return is often the fastest way to reduce your balance.

Schedule a consultation:
https://calendly.com/polaris/newclient