Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
ASFR is the Automated Substitute for Return program.If you do
not file a return eventually the IRS will create a “substitute” return form
using the information it has in its information document matching system.However, it will create the worst possible
return – filing Married Filing Separate if married, claiming no dependents,
reporting gross proceeds from investment sales as income, and with no
deductions or credits – and generating the highest possible tax liability.
I agree with the bottom line of the post –
tax professional, I’m not a fan of the suspension. Sure, this program may have
been overall a cost center; however, it likely forced noncompliant individuals
in to compliance—and that’s the goal of the IRS (current compliance). Overall,
this change seems to me to be a shocking mistake.”
I do believe that receiving an ASFR return
forces delinquent taxpayers to submit a correct return, which has happened a
couple of times in my practice.