Understanding the IRS Substitute for Return
Click to ask Mike Ask Mike The Internal Revenue Service (IRS) Substitute for Return (SFR) is a term many taxpayers
IRS Notice CP63 is a notice that the IRS sends to taxpayers to inform them that their tax refund is being held because they have not filed one or more tax returns from previous years. The IRS may also send this notice if the taxpayer filed a tax return for the current year but failed to include all of their income or deductions.
Reasons why it happened:There are a few reasons why you may have received IRS Notice CP63:
The first thing you should do if you receive IRS Notice CP63 is to review the notice carefully and make sure that you understand why the IRS is holding your refund. If you have any questions, you should contact the IRS directly.
If you have not filed one or more tax returns from previous years, you should file them as soon as possible. You can file your tax returns electronically or by mail. If you need help filing your taxes, you can contact a tax professional.
If you filed a tax return for the current year but failed to include all of your income or deductions, you should file an amended tax return. You can file an amended tax return electronically or by mail.
If the IRS needs to verify your income or deductions, you may need to provide them with additional documentation. The IRS will let you know what documentation they need.
If you have a balance due on your taxes from previous years, you can pay the balance in full or you can request a payment plan. If you cannot pay the balance in full, you should contact the IRS to discuss your options.
How to avoid it in the future:The best way to avoid receiving IRS Notice CP63 in the future is to file your tax returns on time and to include all of your income and deductions. You should also keep good records of your income and deductions so that you can easily file your taxes next year.
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Disclaimer: This is educational content, not legal, accounting, or tax advice.Â
This is a tax debt resource website, not to be used in lieu of a tax attorney or for legal advice. All information, Ai chat responses, articles, materials, and content are intended to inform users on a variety of tax topics. In no way is it intended to be construed as accounting, legal, tax, other services or advice. This site is not intended to be used to avoid tax penalties or tax debt that may be imposed by law. Terms and Conditions. Your use of this site constitutes acceptance of the following terms and conditions.Â
This is a tax debt resource website, not to be used in lieu of a tax attorney or for legal advice. All information, Ai chat responses, articles, materials, and content are intended to inform users on a variety of tax topics. In no way is it intended to be construed as accounting, legal, tax, other services or advice. This site is not intended to be used to avoid tax penalties or tax debt that may be imposed by law. Terms and Conditions. Your use of this site constitutes acceptance of the following terms and conditions.
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