Unfiled IRS and State Tax Returns

If you have a number of unfiled IRS or State of Michigan tax returns and you do not file your tax returns, the IRS or State of Michigan will file for you.

Please note: The process of filing missing tax returns are same for individuals and businesses. If you have unfiled payroll tax returns, the IRS may file Form 941 and 940 tax returns for your business. The State of Michigan may file Sales, Use, or Withholding tax returns for your business.

Unfiled IRS Tax Returns

If you have unfiled IRS tax returns, the IRS may file a tax return on your behalf. The IRS will not file a tax return on your behalf if there is a refund.

Every year you receive tax documents such as W-2s and 1099s. Copies of the W-2s and 1099s are also sent to the IRS. The IRS will review the W-2s and 1099s to determine if taxes are owed. If the IRS expects you will owe taxes, the IRS may file a tax return for you.

Tax returns filed by the IRS are called Substitute for Return (SFR). The SFR will report the highest tax possible. This is because the IRS will file you as single with no dependents, no business deductions, and no itemized deductions. The taxes can be quite high.

Unfiled State Tax Returns

Similar to the IRS, the State of Michigan may file unfiled tax returns on your behalf. However, the state’s process of preparing a tax return for you is different compared than the IRS. Unlike the IRS, the State of Michigan does not have detailed records of W2s and 1099s filed. The State of Michigan will estimate your income based on the best available information. This may mean the state may prepare a tax return that makes no sense. Generally, the taxes owed from a state-prepared tax return are exceptionally high.

Respond to IRS or State Prepared Tax Returns

You are not stuck with the tax returns filed by the IRS or State of Michigan. You can prepare your own tax return to reverse the tax returns filed by the federal and state tax agencies. We highly recommend filing an your own return if any of the following apply:

– You are filing married filing joint, head of household, or surviving spouse
– You are claiming one or more dependents
– You are reporting business deductions
– You have itemized deductions
– You are reporting basis information for stock sales
– You have any other reportable credits and deductions

The IRS or State of Michigan will processes the tax return you prepare. The tax balances will be adjusted to match the taxes reported on the return you filed.

ALG Tax Solutions can help you file unfiled tax returns. If you have any questions, feel free to contact us. If you owe money to the IRS or state and cannot afford to pay the taxes you owe, read more about our tax resolution services.