When James and Linda Carter filed their 2022 federal tax return, they expected the usual: a refund, a sigh of relief, and a clean slate for the following year.
Instead, they found themselves in a bureaucratic maze that would last nearly 20 months, testing their patience, resolve, and faith in the system. Their story is a testament to the power of expert audit defense—and why having a seasoned tax professional in your corner can make all the difference.
The Audit Letter That Started It All
It began with a notice from the IRS. The letter stated that the IRS was holding the Carters’ $30,000+ refund, citing a $25,000+ discrepancy in reported withholdings.
James and Linda, both retirees, who had been out of employment for over two decades, had no idea where this discrepancy came from. Fortunately, they remembered they had purchased TaxAudit’s Audit Defense membership for their 2022 tax return and immediately reached out.
They were first connected with our customer service representative, Peggy. She verified their information, started a case for them, and reassured them that they were in good hands. Their case was then assigned to Louis, their case coordinator. Louis would be there to provide administrative support throughout the duration of the case. He started by requesting a copy of the IRS notice as well as the corresponding tax return. The couple was quick to send over the documentation, and Louis quickly forwarded the case to one of our expert tax professionals, Sherry.
After reviewing a copy of the notice and tax return, Sherry immediately requested additional documentation: 1099-Rs, year-end account statements, and Social Security statements. The Carters dutifully gathered and submitted all the necessary information through TaxAudit’s secure message portal. Upon reviewing the documentation, Sherry determined that the IRS was not interpreting the tax law correctly and that the taxpayers were actually due a refund. She prepared a response and forwarded it to our quality control department for review. Upon approval of this response, quality control forwarded the documentation to our administrative services team, who mailed a copy of everything to the IRS.
Endless Requests, Mounting Frustration
Unfortunately, the IRS was not quick to respond. Sherry called every 45 days to check on the status of the response over the next six months. At the end of the six months, the IRS agent she spoke with informed her that they were experiencing a severe backlog and that she could expect a delay of another six months. Despite this setback, Sherry continued to follow up every 45 days and let the Carters know that she was pushing for a faster resolution.
As the months dragged on, the IRS started to request the same documents—sometimes more than once. The Carters’ case bounced between departments, with little communication or progress. At one point, their return was flagged for review by the “Frivolous Return Program,” a department known for its slow processing and lengthy delays.
James described the ordeal as “beyond frustrating,” and Linda worried they’d never see their refund.
Fortunately, Sherry was not quick to give up. After over a year of back-and-forth with the IRS, Sherry reached out to the Taxpayer Advocate Service (TAS), an independent organization within the IRS that protects taxpayers' rights by striving to ensure that all taxpayers are treated fairly. She also recommended that James and Linda reach out to their congressional representative to see if they could help expedite the process, providing a template for what to request and how to do so. The Carters did as she said, while Sherry continued to push the IRS and TAS.
The Optimal Result: Refund Released, Case Closed
After nearly two years of back-and-forth, the breakthrough finally came. Thanks to the relentless advocacy of their tax professional, and with the push of a congressional inquiry, the IRS released the Carters’ refund—over $44,000—just in time for the holidays.
James expressed his gratitude in a heartfelt message: “Hallelujah! Our refund was finally released by the IRS. I thank you wholeheartedly for helping me through this whole process. We couldn’t have done it without you.”
Lessons Learned: Why Audit Defense Matters
The Carters’ story is a powerful reminder that IRS audits can happen to anyone—and that the process can be long, confusing, and emotionally draining. However, with the right audit defense team, even the most daunting cases can have a happy ending.
Key takeaways:
Persistence pays off: The IRS bureaucracy can be slow, but consistent follow-up and thorough documentation are essential.
Professional advocacy is invaluable: A knowledgeable tax professional can navigate the maze, communicate with the IRS, and keep your case moving.
Don’t go it alone: If you’re facing an audit, consider enlisting expert help—especially if your case drags on or involves complex issues.
At TaxAudit, we celebrate stories like the Carters’—where expertise, advocacy, and perseverance turn tax nightmares into optimal outcomes. If you’re facing an IRS audit, remember: you don’t have to face it alone.
*Some names and identifying details have been changed to protect the privacy of individuals. For more real-life audit defense stories and tips, visit https://www.audit-defense-reviews.com/.
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