What Tax Form Do I Need If I Sold Stock SFR Substitute for Returns – IRS Action on Non-Filers

You are searching about What Tax Form Do I Need If I Sold Stock, today we will share with you article about What Tax Form Do I Need If I Sold Stock was compiled and edited by our team from many sources on the internet. Hope this article on the topic What Tax Form Do I Need If I Sold Stock is useful to you.

SFR Substitute for Returns – IRS Action on Non-Filers

The IRS is aggressively using the “Substitute for Return” (SFR) program to file tax returns on behalf of those who fail to file. In the old days IRS would just send letters or send someone to your home or office to ask you to file. The SFR program has been around a long time. However, due to better computers at IRS, it is being used now more than ever to get people into filing compliance. Basically, if you do not file on time, the IRS sends you letters and may call you on the phone requesting that you file. If one ignores the letters, IRS takes the information reported to them by third parties and files a Form 1040 for you.

In most cases, the tax owed on this IRS prepared return is far more than one would owe if they filed an original return. This is particularly true if stock or real estate sales are involved. Why is the tax so high on an SFR? Well, IRS does not know who lived with you so they usually file the return single or Married Filing Separate (the worst tax table). A person might have had 3 or 4 dependents, but they won’t be on the SFR. Also, if you worked contract labor and got a 1099, it is very likely you had deductible business expenses. Again, IRS does not know what your expenses were and will tax you on the total of 1099s. In addition, if you sold stock, IRS will tax you on 100% of the sales price because they do not know your basis in the stock. In this circumstance, you could have lost money on the stock and had a deduction, but will owe tax on it due to the SFR.

For business owners who do not file 941 payroll tax or 940 unemployment tax, IRS uses code section 6020(b) to file payroll returns for non-filers. These returns can also be for more than one would have owed if they filed the originals.

Once IRS files an SFR 1040 or a 6020(b) 941, they can collect on them just as if they were filed by the taxpayer. I had one client who had a Federal Tax Lien filed on him for over $100K due to an SFR on 1996. We went ahead and filed a correct tax return in 2004 and his true debt was only about $10K. The reason was because IRS taxed all his stock sales as 100% profits when he had many losses.

There is good news for someone caught in SFR trap. You can always file an original return! The tax laws are valid and IRS is a legitimate government agency. Don’t be fooled by bogus websites or folks who tell you that there is no law requiring one to file a tax return. If you get SFR’d, hire a tax professional to prepare a correct return and work with IRS to overturn the SFR. You may be audited, but if you are right then you will owe much less than the amount on an SFR.

A good CPA, Enrolled Agent, or Tax Attorney can help you with IRS collection issues. DON’T IGNORE IRS LETTERS. GET HELP.

Here is the IRS Address Listing to mail correct returns for processing if they were originally an SFR:

Wage & Interest/Dividend Income Cases

Fresno Campus

ASFR Unit Stop 81304

PO Box 24015

Fresno, CA 93779

Form 1040 with Schedule C, E, F, or Form 2106

Brookhaven Campus

ASFR Unit Stop 654

PO Box 9013

Holtsville, NY 11742-9013

International Returns

Brookhaven Campus

ASFR Unit Stop 654

PO Box 9013

Holtsville, NY 11742-9013

Video about What Tax Form Do I Need If I Sold Stock

You can see more content about What Tax Form Do I Need If I Sold Stock on our youtube channel: Click Here

Question about What Tax Form Do I Need If I Sold Stock

If you have any questions about What Tax Form Do I Need If I Sold Stock, please let us know, all your questions or suggestions will help us improve in the following articles!

The article What Tax Form Do I Need If I Sold Stock was compiled by me and my team from many sources. If you find the article What Tax Form Do I Need If I Sold Stock helpful to you, please support the team Like or Share!

Rate Articles What Tax Form Do I Need If I Sold Stock

Rate: 4-5 stars
Ratings: 9620
Views: 70893666

Search keywords What Tax Form Do I Need If I Sold Stock

What Tax Form Do I Need If I Sold Stock
way What Tax Form Do I Need If I Sold Stock
tutorial What Tax Form Do I Need If I Sold Stock
What Tax Form Do I Need If I Sold Stock free
#SFR #Substitute #Returns #IRS #Action #NonFilers

Source: https://ezinearticles.com/?SFR-Substitute-for-Returns—IRS-Action-on-Non-Filers&id=41652

Related Posts

default-image-feature

What Stocks To Buy To Win The Stock Market Game How to Do Binary Options Trading?

You are searching about What Stocks To Buy To Win The Stock Market Game, today we will share with you article about What Stocks To Buy To…

default-image-feature

What Stocks To Buy In Gta 5 In The Beginning Top 10 Gaming Peripheral to Improve Your Gaming Skill in 2018

You are searching about What Stocks To Buy In Gta 5 In The Beginning, today we will share with you article about What Stocks To Buy In…

default-image-feature

What Stocks Are Low Right Now But Will Go Up The Grand Daddy Boom in Uranium

You are searching about What Stocks Are Low Right Now But Will Go Up, today we will share with you article about What Stocks Are Low Right…

default-image-feature

What Stocks Are In Vanguard Total Stock Market Index Fund What Are the Easy Retirement Investment Options?

You are searching about What Stocks Are In Vanguard Total Stock Market Index Fund, today we will share with you article about What Stocks Are In Vanguard…

default-image-feature

What Should You Do When The Stock Market Drops Significantly Commercial Real Estate 2010 – Recovering Or Declining?

You are searching about What Should You Do When The Stock Market Drops Significantly, today we will share with you article about What Should You Do When…

default-image-feature

What Role Does The Stock Market Play In Our Economy Economic Issues for Think Tanks and Radio Talk Show Hosts – Capitalism and Socialism

You are searching about What Role Does The Stock Market Play In Our Economy, today we will share with you article about What Role Does The Stock…