What if I haven’t filed a prior year return?
A taxpayer doesn’t have to file a tax return if their taxable income would be $0. However, if you don’t file a return, the statute of limitations on auditing never starts. This is important protection. The IRS can prepare a return for you if you don’t file and assess tax-called a “Substitute for Return (SFR)”. This is usually not favorable.Â
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