The notice was questioning their 2023 Oregon income tax filings and claiming they owed additional tax. Like many taxpayers, Bea and Marcus had filed their returns with confidence, never expecting to be audited. The letter was formal, direct, and unsettling—and it only gave them 15 days to respond. Unsure of what triggered the audit and overwhelmed by the request, Bea and Marcus turned to TaxAudit for help.
After calling our customer service department and speaking to one of our representatives, Myrriah, their case was quickly assigned to one of our seasoned case coordinators, Lisa. Lisa sprang into action, collecting a copy of their 2023 Federal and Oregon tax returns, along with a complete copy of the notice they received. She then assigned their case to one of TaxAudit’s tax professionals, Olha.
Olha reviewed the notice and concluded that the Oregon DOR was questioning business expenses claimed on their 2023 tax return. In her review, she discovered that Marcus and Bea had accidentally double-reported a few business expenses. However, there were additional business expenses that the couple had claimed that Olha had determined to be accurate. Once she shared her findings, Olha guided Bea and Marcus through the process of gathering the required supporting documents needed to substantiate the claimed business expenses. This included books, journals, ledgers, and bank statements. She explained the best-case and worst-case scenarios for the audit – the worst-case was that the couple would owe upwards of $10,000, the best-case scenario was owing $1,500.
Once the documents were gathered, TaxAudit’s quality control team reviewed the response package, which TaxAudit’s administrative services department then mailed out. This response package was set to be delivered to the Oregon auditor ahead of the phone appointment Olha had scheduled at the end of the month.
After reviewing the initial response, the auditor requested additional information to be mailed ahead of the appointment on two separate occasions, and Bea and Marcus were quick to provide the documents to Olha.
Several days later, Olha met with the auditor to discuss the case. Olha agreed that Marcus and Bea had double-reported certain deductions for business expenses. They also had an in-depth review of all other business expenses claimed, along with the documents provided to support them. The appointment ended with Olha agreeing to provide more documentation to substantiate additional deductions that Oregon was still questioning.
Again, Marcus and Bea worked diligently with Olha to obtain all the documents the auditor requested. An additional response package was created, reviewed by quality control, and sent to the Oregon Department of Revenue. Olha informed Bea and Marcus that the auditor would need some time to review the new documents, and she’d let them know as things progressed.
Olha continued to keep Bea and Marcus updated on her follow-ups with the auditor. After a few weeks, she had an additional appointment with the Oregon auditor, where the discussion of opening the audit to 2024 was brought up. Olha assured the auditor that the mistake on the 2023 was a filing error, and not a repeated pattern, and that she would have Bea and Marcus review their 2024 tax returns and advise them to amend their returns to ensure that the same mistakes were not repeated. The auditor agreed to leave the audit only for 2023 and stated that she would accept the documentation that was provided.
Bea and Marcus received a final notice from the Oregon DOR stating that their documentation was accepted, and they only owed $1,300 for the double reporting mistake while filing. They were ecstatic that they had achieved the best-case scenario and had this to say about working with Olha.
“Olha was very courteous and explained every process to me. She was very patient with me. She made sure to double check everything that the auditor sent to us and even found mistakes that the auditor had made, saving us money! Every bit of the money I spent on this service was worth it! I only wish I could continue on as Olha's friend after this process and stay in touch as I feel like we created a good friendship through this process. Thank you Olha!”
Bea and Marcus' story reminds us that state audits can be just as serious as federal ones, and that having a team like TaxAudit in your corner can make all the difference. Whether it’s navigating complex state regulations or simply knowing how to respond to a notice, TaxAudit’s professionals are equipped to handle it all.
If you’ve received a notice from the Oregon Department of Revenue—or any tax authority—don’t panic. Reach out to TaxAudit and let us help you through it!
*Some names and identifying details have been changed to protect the privacy of the individuals.
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