Zero Balance Due!

When autumn begins to peek its head out in the warm summer months, many people begin to rejoice as hot days make way for cool breezes. Happy pumpkins begin popping up on porches everywhere, candy starts to fill the aisle of stores, and harvest celebrations start hauling in haybales for mazes. However, not all things that come in autumn are always so cheery – as October also is a time for all things scary!

For TaxAudit members Ivor and Sienna, October 2022 was unfortunately more spooky than joyful when they received an IRS Letter CP2000 in the mail for tax year 2020. After the fright settled, they reviewed their 2020 tax return and were able to breathe a sigh of relief when they realized they had purchased an audit defense membership! It was already late in the evening, so they visited the TaxAudit website, created a login and, within minutes, had reported their audit online. They were promptly met with an automated email from the Case Coordinator they would be working with, requesting the preliminary documents needed to get their case moving forward. Excited to get the ball rolling, Ivor and Sienna spent the evening uploading the documents requested – a complete copy of the notice that they had received, a complete copy of their 2020 tax return, copies of their driver licenses, and a selfie picture for each of them. After reviewing the notice, they also realized the IRS was looking at their 1099-MISC, so they also uploaded a copy of that to be proactive.

The next morning, they received a message that all their documents had been received and their case had been moved forward to Michele, their Tax Professional, who would be walking them through the audit process. The IRS was questioning rents and royalties claimed on Ivor and Sienna’s 2020 tax return, which resulted in a balance owed of more than $6,000. Michele worked with Ivor and Sienna to understand their tax situation to learn how to represent them against the IRS. After confirming details, diligently writing a thorough response, and putting together all the necessary supporting documentation, Michele sent a response to the IRS.

Next came the waiting game. A month and a half after the response was sent to the IRS, a new letter was sent confirming that the response had been received, but the IRS needed additional time to review. Unfortunately, this is not out of the ordinary and very common in an audit situation. Though the months passed by, Michele continued to touch base with Ivor and Sienna to let them know that she was continually following up with the IRS for a status report. Again, and again, the only update was to let them know that the IRS was experiencing delays in reviewing correspondence.

Finally, after six months of waiting, Ivor and Sienna received a new letter in the mail. This time, the letter was one they wanted to see! The letter stated that the IRS accepted the response that was sent on their behalf by Michele, and they were no longer proposing changes to the 2020 tax return. Simply put – they owed nothing! Overjoyed and relieved for the process to finally be over, this is what Ivor and Sienna had to say about working with Michele.

“I am really as impressed as I have been with Tax Audit's services and with Michele in particular. The enrollment, communication, follow-ups are flawlessly streamlined through the app, and Michele has been extremely responsive and knowledgeable. In consideration of the likely high volume of cases that TaxAudit specialists must deal with, it must be noted that we felt a very high degree of individualized attention and services. I am clearly a customer for life!”

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