Information on Unfiled Tax Returns

If the IRS shows that you presently owe $2000 for tax year 2001 and you did not file that return, then it is clear that the IRS has filed that return for you. This IRS substitute-for-return (or SFR) is based on whatever income was reported to the IRS for you on that tax year. The balance they assessed for 2001 on the SFR did not take into account any business or personal expenses you may have had in that year that may have reduced the tax debt.

Bill is friends with the folks at Freedom Tax Relief, and their office can prepare a new 2001 tax return and represent you through the process of having the IRS set their SFR assessment aside and compute your actual 2001 tax debt on the real income and expenses you had. This could potentially zero-out the tax debt for 2001.

They are at Freedom Tax Relief, or 800-455-6829.

If you want Bills.com to find you a tax resolution firm, you can apply for help with us.

Don't worry about finding old 1099's for tax year 2001. Freedom Tax Relief can have the IRS provide these numbers to FTR as they prepare the new 2001 return.

I suspect you received a refund for tax year 2004 because the IRS had not computed the SFR balance for tax year 2001 and there was no assessment in place at the time you filed the 2004 return. This is quite normal as it often is several years after the filing due-date for the IRS to generate an SFR assessment.

However, it's not a good idea to delay the filing of the 2005 return. If you have a balance due on that tax return, failure to file and pay can result in large penalties and interest.

In sum then, I would recommend that you retain a firm to file a corrected 2001 return so that the IRS will set aside their SFR balance. In addition, they can complete your 2005 return.

If you want more information on IRS filings and back tax obligations, there is useful information here: /irs_debt_help/

I hope the information helps you Find. Learn. Save.

Best,

Bill

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