Small business owner, Natalie, was sitting down to eat lunch when she heard a knock at her front door. She peeked out the window and saw the postal worker dropping off mail. Eagerly awaiting an important package, Natalie jumped up to see what had been delivered. Unfortunately, Natalie had not received her package. Instead, she had received not one but TWO IRS notices for her Schedule C business – IRS letters 3572 for 2020 and 2021. The IRS was questioning business deductions, including office supplies and employee benefits, and they were stating she owed $3,000 for 2020 and $6,000 for 2021!
Natalie was immediately distraught at the thought of owing $9,000 to the IRS. She pulled out her tax return and documentation to see what had gone wrong when she noticed that she had bought TaxAudit’s Audit Defense for 2020 and 2021. Although she was still very nervous about the situation, she felt relieved because she knew she would not have to deal with the IRS alone.
The next day, Natalie went on TaxAudit’s website, signed into the membership portal, and reported her audits. Just a few hours later, Natalie’s Case Coordinator, LaShawna, contacted her! She started by answering Natalie’s many questions while also providing reassurance that we would be there to support her every step of the way. LaShawna then requested a copy of the notice and corresponding tax return, while also sending Natalie personal and business questionnaires so her Tax Professional could better understand her unique situation.
Shortly after Natalie finished the questionnaires, Alan, her Tax Professional, contacted her to schedule a meeting for the following day. During this meeting, Natalie and Alan discussed her audit. Alan began by requesting documentation from Natalie, including invoices and proof of payment for expenses over $250, such as office supplies, wages, and employee benefits. Additionally, he requested a write-up explaining the nature of Natalie's business, how it operates, and any exceptional circumstances that would’ve affected her business during 2020. After Alan outlined the documents that would be needed, Natalie expressed that she was worried about the response deadline since it was only 10 days away. Alan contacted the IRS on Natalie's behalf and asked for an extension, which gave her additional time to gather the documentation he requested. This helped to relieve her of the stress caused by the looming deadline.
A few days later, Natalie got all the information to Alan in a neat and organized manner. Even though this audit was at the height of tax season, Alan was able to complete the document review the following week and scheduled a meeting with Natalie to discuss. He only had a few revisions before he felt confident submitting the paperwork to the IRS.
Alan then let Natalie know he’d be discussing her case with the IRS and that he would keep her updated on the status of her audit, as they can often drag on for months or even years. Over the course of the coming weeks, Alan continued to keep Natalie in the loop, providing check-ins on the status of her case.
After just a few short months, Alan had some great news for Natalie. The IRS accepted the documentation submitted for tax year 2020, and Natalie went from owing $3,000 to now owing nothing! For the 2021 notice, she went from owing $6,000 to receiving a refund of $300. Natalie was ecstatic about the outcome, as her total debt went from $9,000 down to the IRS owing her $300! This resolution was unprecedented as Natalie’s case lasted less than three months, which is three times faster than a typical case!
This was all possible because of Alan's constant communication, reassurance, and commitment to our members. As a result, TaxAudit was able to close the case in three months and save Natalie thousands of dollars!
This is what Natalie had to say about the case:
"TaxAudit was an easy process. After submitting my initial request, a coordinator contacted me and set me up with Alan as my Accountant/Advocate. Alan provided outstanding support and was very professional. He prepared me for the worst-case scenario and requested comprehensive details to represent best and ensure the audit went smoothly. He also provided a full interface with the IRS to shield the client during the process. Alan also worked with the IRS Auditor before the meeting to ensure we were covering all his concerns & had the information needed. Ultimately, I ended up with a small refund (versus a large payment & penalty due). Many thanks to him and TaxAudit!"
*Some names and identifying details have been changed to protect the privacy of the individuals.