In September of 2023, our Audit Defense members, Johnny and Carol, received a notice from the IRS. The letter notified the couple that they owed $20,000 due to inaccurately reported stock income on their 2020 taxes. Johnny and Carol were completely shocked! They never received a letter from the IRS before, and Johnny had always been meticulous when filling out their taxes every year. The only option the couple could think of was to review their joint tax return for 2020, hoping to find out what went wrong.
During this review, the couple found valuable information they weren’t even searching for; they purchased Audit Defense for their 2020 taxes! Immediately, Carol called our Customer Service department and handed the phone to Johnny. In this call, Johnny explained the notice he received and the amount he owed.The Customer Service Representative told Johnny about the next steps in the process and reassured him that he and his wife were in good hands.
That same day, our Case Coordinator requested the necessary documents from Johnny and Carol before forwarding the case to a Tax Professional. Shortly after, a second message was sent to the couple. Because the audit was related to inaccurately reported stock income, Johnny and Carol needed to provide either a form 1099-B or a consolidated financial statement from their broker. That same day, the couple submitted all the information their Case Coordinator requested, and the case was assigned to a Tax Professional.
In just a few days, Shanti, the couple’s Tax Professional, contacted Johnny and Carol to schedule a meeting. Shanti explained that the couple inputted Johnny’s employee stock but did not properly record the stock sale in their 2020 taxes. To properly report the sale, Shanti needed the last pay stub that Johnny received from his previous employer, which reported the employee stock received. In addition, Shanti also needed Johnny to submit a 1099-B from their broker, which listed all the transactions of the employee stock sale.
After this meeting, Johnny had trouble obtaining his last pay stub and employee stock information from his previous company, which no longer existed. However, after searching through his files, he found his final paycheck. After that, Johnny sent Shanti his final pay stub and 1099-B from his broker.
Upon receiving the necessary documents, Shanti had all the information required to create a comprehensive and convincing response to the IRS. She prepared the response and forwarded it to our Quality Control department for review. After receiving approval, Shanti informed Johnny and Carol that she had submitted the response to the IRS. Shanti also let the couple know that it may take several months for the IRS to respond, but she would keep track of the case with monthly check-ins with the IRS.
The following month, Shanti called the IRS, and they told her that the case was closed and a favorable outcome was received! Immediately, Shanti sent Johnny and Carol a message telling them they no longer owed any money to the IRS!
Our tax professional, Shanti, made this outcome possible. Her expertise and hard work quickly and efficiently resolved the case, saving our members $20,000!
This is what Johnny and Carol had to say about this case:
"I cannot say enough positive things about Shanti's help throughout this process. She was absolutely amazing in explaining the process, shepherding us through this journey as a true partner, and we are very grateful to have been assigned her as our Tax Audit Professional.”
*Some names and identifying details have been changed to protect the privacy of the individuals.
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