A Best-Case Scenario

In late 2020, one of our members, Allison, reached out to TaxAudit regarding a letter she received from the IRS. The letter was a CP2000 notice questioning Interest and Securities from her 2018 tax return. After reviewing the notice, Allison contacted TaxAudit because she was overwhelmed by the proposed amount due of more than $35,000. After providing the proper documentation to get a case started, she began working with her tax professional to remedy the situation. Her tax professional reviewed the notice in detail with her, answered all of her questions, and let her know what type of supporting documents would be needed. Because this notice was questioning her 2018 tax return, Allison was anxious that she would not have all the documents needed since it was more than two years before. She was also worried about owing the IRS so much money and asked multiple times if she should just pay the amount owed on a payment plan since she was not sure she had the proper documents anymore. Luckily, our seasoned tax professional was able to walk her through the process of requesting and organizing copies of the documents needed for the response.  

A carefully reviewed and crafted response was then sent to the IRS. Our tax professional explained to Allison that, at this point, the next course of action was to wait for the IRS to review the response, a process which typically takes 8-12 weeks. However, every 45 days, her tax professional would follow up with the IRS to get an update on the status of the response package while updating Allison every step of the way. Finally, after two and a half months, a new CP2000 was issued as a result of the response package sent. 

The new notice brought great news – the best-case scenario was achieved! Allison’s proposed amount due of $35,000 was dropped down to only $340! Allison and her tax professional were overjoyed with the result! Her tax professional then walked her through the different methods in which she could pay her amount owed. As an additional courtesy, her tax professional even reviewed her tax return to look for potential red flags that the IRS or state might question at a later time and advised her on the best steps to remedy potential issues. 

In the end, by contacting TaxAudit and not paying the initial proposed amount owed, Allison saved over $34,000! This is just one of the many reasons why contacting TaxAudit can help alleviate the stress and pressure of dealing with the IRS on your own!

**Some names and identifying details have been changed to protect the privacy of the individuals.