So here's my question. I've read conflicting information on this topic so I'd greatly appreciate some insight.

Lets say a return is 12 years old, never filed by taxpayer, but the IRS filed a substitute for return 4.5 years ago (from today). The amount owed is really zero, but the SFR billed/levied $15000.

Here is my question. Normally, there is a 3 year limitations on refunds, but I have read that an SFR does not really constitute a "return" in the sense that it starts the limitations count down.

So my question is, can I file that old return, even though a SFR was filed and levied, and receive a refund? Thanks very much, because I'm completely lost/confused. If i'm able to, it would be fair and make sense, since I didn't exactly owe anything on the year.



Here is an excerpt of what I mean, but I don't fully understand:

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"1.The Service has authority to prepare and process a tax return when a person fails to file a required return or files a false or fraudulent return under authority of IRC Section 6020(b). If the Service processes a tax return prepared under the authority of IRC Section 6020(b), the assessment date will start the period for the statute of limitations for collection per IRC Section 6502(a)(1), but does not start the period of limitations for assessment.


2.If the taxpayer signs a SFR return prepared from income information received from the taxpayer, it becomes the taxpayer’s return per IRC Section 6020(a) and starts the assessment period of limitations. If the taxpayer signs a waiver of restriction on assessment (Form 870, 4549, etc.), it does not constitute a return under IRC Section 6020 (a), in accordance with Rev. Rul. 2005–59. If the Service has processed an unsigned Substitute for Return (SFR), the taxpayer may still file a signed tax return for the same tax year as the SFR return. The assessment statute period for that tax year will begin with the received date of the taxpayer’s signed return. See IRC Section 6501(a)(b)(3)."