Great outcome gets dozens of comments from customers we have helped every week. Below are just some of the reviews we received last month.

I’m very glad I purchased it, have recommended it to my friends and family and will continue purchasing it!

Courtney, Solana Beach, CA


My audit representative did a great job with my issue, keeping me informed, explaining the steps and answering questions. I will continue to use TaxAudit every year. This was my first experience dealing with the IRS and my audit representative certainly made it easier.

John, Gotha, FL


My audit representative was wonderful to work with. He helped us feel at ease as much as possible during the whole process going out of his way to return my sometimes evening and weekend calls. He is truly one of a kind!

Zoey, Branford, CT


I was very pleased to work with mt audit representative and the taxaudit team. Great help, especially, I enjoyed the web interface. I am at a foreign location, the web based service was excellent!

Alexander, The Woodlands, TX


Great outcome. Everybody from Tax Audit was professional, pleasant, and patient. Got back to me right away, kept me informed, and solved the problem without hassle. Thanks so much. I would recommend your service to anybody.

Paul, Owens Cross Roads, AL


This is the first time I have used tax audit. I am glad I did and appreciate the help.

Benjamin, Reno, NV


I was super pleased with this process & it relieved me from a lot of stress from the IRS.

Charles, Jackson Springs, NC


My Audit Representative and was helpful, knowledgeable, and professional throughout the audit process. He was courteous and kept us informed and fully explained each step of the process. We have already recommended to friends and colleagues and fully believe is worth every penny. Thanks for being there with professional and competent assistance when we needed it.

Brandi, Birmingham, AL


My audit representative did an outstanding job in a difficult situation. We so appreciate her concern for our situation and her diligence in seeing it through. Thank you. I am so happy I took advantage of this offer on TurboTax.

Catherine, Riverside, CA


I was extremely happy with the service I received. It was a comfort to know that experienced people were handling my case.

Kevin, Brookfield, CT

The Warm Fuzzy Feeling You Get from Helping Someone

Written by: Ashleigh D. Noda, Esq.

I received a case for a 2012 Schedule A correspondence audit. When I called the members, the wife answered and told me that her husband was the one that prepared the return, and usually handles all the tax matters, but she was going to be the primary contact because he was ill.

The process was long and arduous, as the members had to get their documents from the CPA, the husband had to translate his notes for his wife and she had to then get them to me with an explanation. There were quite a few delays in getting the documents and I found out later that among other things her husband was having numerous visits to the hospital, emergency surgeries and she had fallen and broken her arm.

Once I received the documents I noticed that the members had received another notice for the 2013 tax year as well. While awaiting the IRS reply for 2012 and requesting documents for 2013, the member’s husband passed away. I felt terrible knowing that the audit wasn’t going away. I had to get a new Power of Attorney, request the death certificate and a copy of his will. Plus, she still needed to provide documentation for the 2013 audit. I had to continue to follow up with her during this difficult time, as we had already been given an extension deadline which was coming up.

We finally received the exam report for 2012 that had a penalty included of $1,340.20. I prepared a penalty abatement request, explaining that her husband had passed away during this audit and he was the one that handled their tax matters. It wasn’t much compared to the $6,700 tax bill, but unfortunately based on the documentation provided, it was the only item we were able to dispute. We sent out the 2013 response and I told the member that she was probably looking at another $6,600 for 2013, but I would request the penalty be removed as well.

During this time, despite the unfortunate passing of the member’s husband, she was consistently upbeat, responsive and somehow maintained the “look on the bright side” demeanor. I had hoped that I could at least help ease the impact just a little with the penalty abatement.

A few weeks later, we received a new notice for 2012 which removed the penalty. When I called the member, she was so appreciative and she told me that she had also just completed her 2015 return and purchased our membership again and explained we were “stuck with her for another year.” She relayed to me how helpful had been throughout the process and how thankful she was that while she had to prepare for the funeral and take care of her husband’s estate matters, she didn’t have to worry about the audit because of our assistance.

In the beginning of this month, we received a no change letter for the 2013 audit (for which documents were admittedly weak, since we did not have the husband’s documents for a majority of the medical expenses and miscellaneous items). I was happy to share the news with the member, who was shocked when I explained what “no change” meant and jokingly wished that we did not have to work together again for 2014.

As I reflected on this story I thought, I did not do anything extremely special for this member and it was how I would have handled any other member’s case ─ I was just more invested. Everyone at may be able to relate to the fact that we always try our best for all our members, no matter what their situation is. The only difference is, some send us home with the warm fuzzy feeling at the end of the day.

My audit representative was amazing gets dozens of comments from customers we have helped every week. Below are just some of the reviews we received last month.

Can’t say enough about everyone I interacted with at TaxAudit. So nice to know I have people who know what they are talking about on my side! Thank you all.

Foster, Portland, OR


My audit representative was amazing. Her knowledge and positive communication made a very scary experience (or what could have been without her) so much better. She continued to keep in contact with me and explained every process as it occurred. I was lucky to have not only checked the “protection box” when filing, but also to get her as my counsel.

Nancy, Marlborough, MA


We had the pleasure of working with a great team that completed our audit needs step by step and provided support and guidance in completing the entire process. We appreciate all the work that was done and support provided to us. Thank you.

Simmon, Elk Grove, CA


TaxAudit rocks! I so appreciate your help in handling my audit. Big shout out to my audit representatives. They were exceptional and I am grateful that they were both on my team!

Michael, Cathedral City, CA


I never thought how easy it is for me with tax audit team assistance. I thought its going to be a nightmare but my audit representative made it so easy and simple for me. I really appreciate the assistance and professionalism. I did the right thing for buying the membership. It pays the hardwork that tax audit team has done to help me resolve the issue with my tax situation. They acted so fast and professionally along the way. Overall I am happy with the service. Thank you very much.

Aileen, Anchorage, AK


Fantastic service and professionalism! Having your service let’s me sleep at night much better knowing that I’ll have expert assistance dealing with the IRS.

Lisette, Lake Elsinore, CA


So glad I purchased this Audit Defense it was a peace of mind.

Alana, Albany, OR


My audit representative was very professional and did a great job navigating me through the process. She also provided the highest level of service within the service offering and I would highly recommend this service regarding tax service in support of ANY type of communication requests when working with the IRS.

Roger, Jordan, MN


Excellent service throughout the entire process from everyone involved. In addition to helping with IRS notice, my advisor caught a possible error in my reporting of a sale of stock, where I may have overstated income. So, not only have I received the audit help needed, I may be due back funds from my return. I will recommend this service to everyone who prepares their own taxes, well worth the small investment!!!

Maria, Sarasota, FL


When you see an IRS letter in your mailbox you get worried. Fortunately I signed up for the Tax Audit a few years back through Turbo Tax and could not have been happier with the service and assistance in getting my case closed.

Edward, Bellmore, NY

To Our Unsung Heroes

Written by: Jean Lee Scherkey, EA

Whenever several people are put together in a group situation, either by birth, choice or work, certain roles emerge. These roles are then chosen or sometimes even imposed upon the different individuals within the group. There are the leaders, caretakers, sages, “worker bees,” and organizers, just to name a few. Then there are the persons who quietly and with grace don the hats of a leader, caretaker, sage, organizer and worker bee all at the same time. Without them a group may still function and achieve its goals. But with these individuals a group has the ability to become a community of champions. When you search for the heart of’s community of champions, you will find our Senior Audit Representatives.

Our Senior Audit Representatives are committed to partnering with and mentoring our Audit Representatives, in an effort to ensure each of our members receive excellent, accurate and personalized care. Our vision is a world where no one has to face the IRS alone. In that same vein we do not want any of our Audit Representatives to feel like they are on their own when defending a member in an audit. The Senior Audit Representatives go the extra mile to offer encouragement and guidance to the team at each step of the audit process.

One of our company goals is to provide the best taxpayer education available to our members. One way we empower our members is through knowledge. When our members understand the tax rules their confidence increases and their fears lessen. In order to achieve this goal we provide our staff with a full curriculum of in-house continuing tax education courses. Our Senior Audit Representatives support our culture of continuous learning by freely sharing their thousands of hours of experience and wisdom with the Audit Representatives. Through their efforts of working as a community, the Audit Representatives are able to get the best possible results for our members so that they pay no more tax than they rightfully owe.

At the core of every great member experience there are caring people who are committed to serving each member with the utmost dignity. At the core of our Audit Department you will find our Senior Audit Representatives selflessly giving their time, experience and wisdom to their peers, ensuring we all stand as Champions.

TaxAudit took the fear out of the audit process gets dozens of comments from customers we have helped every week. Below are just some of the reviews we received last month.

Apparently I was selected at random for an audit. I thought it was going to be a nightmare! was fantastic in showing what documents I needed to submit. Shortly after I received a “Letter of No Change”, IRS Case Closed.

William, Arcadia, MI


My audit representative was my rock during this audit. He kept me calm and stress free. I am so impressed with his professionalism, qualifications, customer service skills, empathy, and he was ‘to the point – in layman’s terms.’ I don’t know what I would have done without my audit representative on my team. I mean that from the heart. Thank you for keeping me sane!!!

Lisa, Temple, NH


Excellent work. Very attentive. Thanks!

Asmund, Houston, TX


Having an audit is a process that is anxiety producing and labor intensive. My experience with was exceptional. Everything was clearly laid out and professionally laid out. Thank you to everyone.

Maureen, Stouffville, ON


I cannot overstate how appreciative I am to have worked with your team. Thank you for everything.

Amar, Jackson Heights, NY


I literally would have been lost without There is no way that I could have navigated the process on my own, nor could I have achieved the outcome that my audit representative accomplished – she worked a miracle for me. In fact, yesterday, I talked with two very nice women at the post office who both use TurboTax, and after hearing about my experience, they said that they will both opt for the TaxAudit coverage the next time they file – it is my mission to tell everyone I know what a great job you all did!

Halle, Lake Wales, FL


My wife and I could not be happier with the resolution of our tax issues and are totally satisfied with the care and attention from TaxAudit. An excellent team of professionals.

Peter, Boone, NC


Tax Audit and its representatives did an outstanding job. Will definitely let people know in the future who may need tax help. Thanks Tax Audit and crew for all your help.

Chris, Pahrump, NV


TaxAudit took the fear out of the audit process and provided top-notch, professional representation. I cannot thank you enough.

Richard, Round Rock, TX


Thank you for your assistance in this matter. Receiving the IRS notice was very intimidating but your professionalism and expertise helped calm my worries and brought great relief to this stressful situation. I do not know how I would have navigated this process without your help. I will definitely recommend your services to my family and friends; knowing you are there to help and represent me if I happen to make a mistake on my federal taxes is priceless.

Lee, Mount Juliet, TN

Because Audits Happen…

Written by: Jonathan Crosby, EA

The following case took eight months to successfully complete, and spanned two continents. The member, who had moved to Europe in 2004 and lived in Switzerland, was being audited for the Foreign Tax Credit and Foreign Earned Income Exclusion by the Cincinnati office of the IRS for tax year 2012.

The first challenge was arranging to contact the member due to the nine hour time difference. Once the logistics of communication were established, obtaining the proper documentation was next. There would be quite a bit.

For the Foreign Tax Credit (Form 1116), I would need all prior year federal returns that included Form 1116 to establish the proper carryover amounts were being calculated correctly. For the Foreign Earned Income Exclusion (Form 2555), I needed his foreign return filed for the year under audit, proof of residency, employer letter, income statements and completed IRS Form 9209 (Bona Fide Residence/Physical Presence Questionnaire), 9211 (Foreign Earned Income Exclusion Questionnaire), and 9213 (Foreign Tax Credit Questionnaire).

Passports, residence card, home purchase and real estate tax documents would also be required to support his position.

The next challenge was that the IRS was requesting certified translation of all documents, and per the client this was going to cost him $50 USD per page. In addition, the taxpayer was extremely concerned about providing access to his personal and confidential information to another individual ─ the third party translation service. I referred him to the Form 9213, which states: “when submitting copies of foreign tax returns and/or documentation which is in a foreign language, please indicate which words are necessary to provide an explanation of the above items.” He decided to use this option and provided the English words alongside the German. I put the ownership on the IRS to request clarification of any document they couldn’t understand.

On April 22, 2015, I was able to assemble the following response package:

  1. Foreign Exchange Rates – IRS Table TY2012
  2. Swiss Tax Return TY2012
  3. US Federal Tax Return TY2011 and TY2013
  4. Swiss Resident ID Cards
  5. Swiss Property Tax Bills TY2011-TY2013
  6. Completed Forms 9209, 9211, and 9213
  7. Taxpayer Employment Contract.
  8. Taxpayer Employment Dates and Locations
  9. Spouse’s Employment Contract
  10. Spouse’s Employment Dates and Locations
  11. Taxpayer’s US Passport and Travel Dates Overview
  12. Wages for both taxpayers.
  13. Swiss State and Federal Tax Invoices and Payments
  14. The taxpayer’s prepared Forms 1116 for TY2004-TY2011

On May 19, 2015, I followed up with the examiner to ensure the package had been received and to answer any questions. He assured me he had received the information and would contact me once he’d had a chance to review it.

Five months later, on October 13, 2015, I was able to obtain a resolution on behalf of the member, with no additional tax liability and a small adjustment to his Form 1116 carryover amount. This is what he had to say when his audit was finally concluded:

“My audit was handled in a very professional manner. Jonathan made the audit a pleasurable experience, if you can say that in the same sentence. He was relentless to answer every single question and when he replied, the answers were clear and to the point. He would often answer the next question before I could ask it. I am a banking executive working in Switzerland and in my opinion Jonathan not only met my expectations, but managed to surpass them. In my environment we deal with complex government regulations, but he managed to explain the IRS complexity and requirements as easy to understand. I would recommend Jonathan and the services he represents at tax audit.”

Thanks to tax audit I was in good hands gets dozens of comments from customers we have helped every week. Below are just some of the reviews we received last month.

My Audit Representative was very professional and extremely helpful in resolving my 2013 tax inquiries. I do appreciate all his time and assistance in helping me resolve my IRS issues.

Hamid, St. Thomas, VI


This is an excellent service, and a bargain. I’m so glad I purchased the service, and I certainly will again in the future. I received excellent service every step of the way. I have nothing but praise for your company and the employees with whom I interacted.

Harold, Tucson, AZ


An invaluable service for those who do not have the experience to deal successfully with the IRS. No issue is considered too trivial for their attention and effort. They make sure you are kept in the loop for the entire process and take the time to explain what they are doing and what the next steps are in terms that are easy for the lay person to understand. I highly recommend their services.

Jason, San Pedro, CA


I recommend that every person that file their taxes with Turbotax sign up with TaxAudit. TaxAudit gives me confidence, that, if in case of an audit, they will be there to represent me. Thank you.

Luis, Weston, FL


My taxaudit experience was very positive. The taxaudit representative was able to resolve my issue quickly and reduced my overall payment to the IRS by 40%.

John, Sterling, VA


I am so impressed with the way TaxAudit’s team handled my audit and the results. It was stressful just getting audited, but the outcome was better than I could have hoped for, and the process was simple once my rep took over! I can’t recommend you enough!

Rene, San Ramon, CA


When I first got the notice from the IRS I was super freaked out! But, thanks to tax audit I was in good hands. It was a very easy process and I am very pleased with the service we received. I have and will continue to recommend this service to my family and friends.

Mark, Humeston, IA


The IRS can be intimidating to a person who doesn’t work with numbers, papers, and forms every day. The TaxAudit professional advocated for us and in the process made resolving a simple mistake extremely easy. I’ll use them again! Hiring them was a great decision!

Jared, Katy, TX


First, I am a curriculum designer and seldom provide stellar feedback across the board; I’m trained to find flaws (in my own work as well), if you will. Throughout this process I have been highly impressed with the level of care, thorough explanations, and reassurance that all would be well. While I’d like to say I look forward to working with you again, this is one case (undertaker being the other, I suppose) in which I hope it’s not necessary. But…should the need arise, I know my family will be in good hands. Audit Defense will always be part of our tax prep process and I have shared our story with many already and will continue to do so! What a wonderful experience!

Janice, North Charleston, SC


Was grateful we signed up for services, just in case. We were fortunate you were there to help us with the audit and fix errors. Well worth the cost when we originally did our taxes. Thank you for an excellent job.

Connie, Allison Park, PA


I will always use and recommend Tax, everyone that we dealt with was great! Thanks to everyone for all their help!!

James, Oliver Springs, TN


Your company provided much needed peace of mind and the highest level of professionalism during a highly stressful time. Simply invaluable!!

Ivory, Fayetteville, GA


This service totally blew me away. One missed document changed the entire tax return and I had no idea how to go about correcting the towering affect. My audit representative’s expertise and gentle guidance made the process simple. He was encouraging and confident through the entire process. I will shout your value to all my family and friends. I so appreciate this service and won’t go a single year without the protection.

Sharon, Stevensville, MI


This was a fantastic experience. It is the first time I ever have to deal with this kind of experience and it terrified me receiving that letter from the IRS. I greatly appreciate the re-assurance from my coordinator and audit professional during the entire process. It was more than I expected and could not have had a more pleasant experience. Kudos to them for the great work!!

Luis, Hollywood, FL

A Weight Lifted

Written by: Kyle Hopkins

Each morning when I come in to work at I see our mission statement posted on the side of my cubicle: “To provide our Members with the finest income tax audit representation and the best taxpayer education available while minimizing the stress involved in dealing with the IRS or any tax authority.” While I’m in a non-tax role in the Membership Services Department, my team and I play a vital role in minimizing the stress of our members.

Each day I monitor the emails sent in by our customers requesting assistance with everything, from website problems to reporting their audits. Our company policy is to respond to all correspondence within one business day, but I make it my personal goal to have no calls left to respond to by the time I leave each day. To provide the best service and minimize the stress in dealing with the IRS, being prompt in responses to our members is vital. Oftentimes I will call a member back within minutes of receiving their email.

Frequently I hear people say how quickly we handled their problem and how a weight is lifted when they are assured that we will act promptly to take care of their audit issues. It’s easy to forget how much a prompt reply can help and how we all want to feel like someone is there for us when we need them, but I am reminded of it every day.

Recently I handled a call from a member who was very concerned about her notice, which she received late due to a move. While the notice itself was a typical 30-day notice, more than two weeks had elapsed before she received it at her new address. Not knowing exactly what to do, she turned to our website,, and found our customer service email address. I received her email, which included her phone number. Our internal system automatically generates an email response to members letting them know that a reply can take up to one business day; on a Friday that could mean they may not receive a response until after the weekend.

The member was understandably worried about losing a few more days with the deadline looming. And she was quite surprised when her cell phone began to ring less than five minutes after she sent the email. When I introduced myself and told her I worked for she was immediately relieved that we had responded so quickly. I started an audit report and went over the instructions on what she needed to do to get her case assigned to a tax professional. She was prompt in sending her documents, and when I checked on her case later I found out that an audit representative had been assigned before the end of the day, saving several days towards the deadline.

Every day our Membership Services Team strives to meet the needs of our members and understands that when we receive messages someone is anxiously waiting to hear back. Our members’ peace of mind is important and we empathize with the stress they feel when trying to get their audit process started. To all of us at meeting that expectation is an everyday thing, but we also recognize how much of an impact a timely response can have on the confidence and stress levels of our members.

Extremely satisfied gets dozens of comments from customers we have helped every week. Below are just some of the reviews we received last month.

Awesome experience and will definitely use this service again.

Sharon, Honolulu, HI


Extremely satisfied. The end results were as described by my representative and everything was done very proficiently.

Blanca, Oakland Park, FL


Fantastic service! I’ve bought the TaxAudit protection for a number of years but this was my first time using the service. It was easy to use and my audit representative did a wonderful job keeping me up to date and explaining the situation.

Joseph, Littleton, MA


Great experience! Just had to get some key documents and you handled the rest! Very worth the money for the peace of mind of knowing that I was protected and represented when I got a letter.

Roberto, Dallas, TX


Great Service. It was a tremendous relief not to have to deal with the IRS.

Jerome, La Quinta, CA


Happy to have selected Tax audit protection.

Mark, Morro Bay, CA


I am entirely satisfied with TAX AUDIT. I consider it one of the best investments I have ever made!

Stephen, St. Louis, MO


I am extremely pleased how my representative and coordinator managed my case – always responsive and in a timely manner, all my questions were answered. I was walked very easily through the entire process. Thank You.

Guillermo, Denver, CO


I am very glad I decided to pay the money to be able to not worry about a IRS Tax Audit and have someone else deal with the IRS, the Tax Audit Defense team. Thanks for your excellent help!

Richard, Plano, TX


I did not know much about, I did buy the coverage, but wasn’t sure how “legit” it was. My experience with tax-audit has been very professional and useful and I will recommend it to my friends and family in future.

Muhammad, San Jose, CA


My experience with Tax Audit was above and beyond my expectations. My audit representative was proactive, courteous and knowledgeable – he was able to quickly identify the state auditor’s mistake and explained the necessary steps he would take to rectify the error. A positive experience and will remain a customer in the future.

Francisco, Brunswick, GA


TaxAudit really had my back. Everything was done in a timely and professional manner to my extreme satisfaction. I will definitely recommend them to everyone I know. Thank you TaxAudit!

Leslie, Harker Heights, TX was professional and reassuring during a difficult process. I will always get your service and will recommend to all my family and friends.

Elaine, Senoia, GA


When I received the letter from the IRS I was very concerned that I had filed something incorrectly. Using TurboTax is very simple but there were different circumstances for that particular years taxes. I was very glad I had purchased protection through TaxAudit. I immediately logged in and requested help and received it immediately. From the first contact to the last contact, everyone was very helpful, experienced and attentive. My issue was resolved in approximately 7-8 weeks. I couldn’t be happier with the outcome. I will continue to use TurboTax for my tax filing with the utmost confidence that TaxAudit will be there to help if needed. Thank you for your services.

Debbra, San Antonio, TX

Don’t Worry, Be Happy – And Keep Good Records!

Written by: William Daly, CPA, EA

I was assigned a case for a member who had been contacted by the New York State Department of Taxation and Finance (NYS DOTF). The agency had disallowed the member’s Schedule C losses because they believed the member did not conduct his business with a profit motive due to a five year history of losses. The member had a full-time job in the banking industry. At the same time, he was trying to establish himself as a Caribbean music producer.

In our response to the NYS DOTF, we addressed the nine factors listed in the IRC regulations that are used to determine the profit motive of a taxpayer.

First, we looked at “the manner in which the member carried on the activity.” We asked many questions about how he’d conducted his business, and we were able to document much of what he claimed. He provided copies of contracts he’d entered into with various musicians and a copy of a lease for his studio. He sent several e-mail chains between himself and recording artists, recording studio owners and other producers. He also submitted a discography of all of the songs he was listed on as a producer, along with the recording artist’s name and the recording label.

Next, we addressed “the expertise of the taxpayer and/or his advisors.” The member said that in previous years he had partnered with another songwriter with whom he’d had several hit records. Many of the artists that have performed their songs did so throughout the United States, Europe and the Caribbean. The member also produced the names of thirteen other musicians, vocal coaches, and music producers he’d collaborated with over the years.

The member had become educated on the legal side of the music business through an unfortunate chain of events leading to lawsuits for copyright violations. He said he was always looking to make his business profitable and he produced the names of sources from whom he’d been able to obtain ideas and creative concepts.

We then asked the member how much time he was devoting to his business. While he was working in a full time position, he was devoting 15 to 20 hours per week to his music business, which included writing music and the operational aspects of his venture.

Turning to the next factor, “the expectation that assets used in the activity may appreciate in value,” the member was very forthcoming about the possibility of success of any one individual in the music business. He provided the names and songs that had been produced by Caribbean immigrants such as himself. The member was well aware that many artists go through a barren spell before having a hit record. But much to his credit, he never seemed to give up. He was able to document several instances where he had sent demo tapes of his music to various record producers and other music licensing entities.

His music activity was the only activity ever undertaken by the member other than full–time employment.

The next two tests were to examine the member’s history of losses in the activity as well as his amount of occasional profits.

The member was able to demonstrate that before 2011, the music business had been characterized by sales of CD’s and vinyl records. Around 2011, the music business underwent a sea change where retail record stores closed and music became obtainable via Internet download. Many established record companies filed for bankruptcy.

From 2011 – 2012, the member’s business spent heavily on production and promotion costs related to one specific artist. During that period the artist’s career began to take off in the Caribbean music scene. In fact, the artist was selected to perform at the Caribbean Independence Ball held in New York City. Afterwards, the member attempted to formally sign this artist, but the singer refused to sign the recording contract and chose not to honor his side of the agreement. Given the member’s previous experience with the legal system, he decided not to pursue any legal remedies. In addition, during that time, the member stopped working with U.S. record promoters and video directors, and also stopped making CD’s.

The last factor in the IRC regulation, “elements of personal pleasure or recreation,” at first blush, was a difficult hurdle to overcome. The member said that while he actually enjoyed writing music, he did not like other elements of the music business. In particular, he cited the hype over substance of the business, difficulty of the independent producer to access the mainstream music, and the prevalence of many dishonest individuals who do not honor their agreements.

I was very much impressed with the amount of supporting documentation the member provided to us in defense of his case. He provided copies of emails he had sent to various artists, record producers, video directors and the like, demonstrating his hands-on involvement in his business. He was able to clearly illustrate where and why the losses in his business had occurred. The member was attempting to earn a profit in the music business, which has been marked by many changes ─ primarily due to the Internet. In addition, the product of the music industry, the songs and the artists that perform them, have a very short shelf life, often measured in weeks.

I assembled the response to the NYS DOTF and had it reviewed by colleagues to see if there was anything else we could add to bolster the member’s case. Most of my colleagues were equally impressed by the amount of documentation the member had provided.

We sent the response to the NYS DOTF and waited to hear from them. Several weeks later, they responded, allowing the member’s losses ─ not only for the current year, but also for all of the prior years as well.

A few months after the member’s New York case was closed with no changes, the member received an IRS audit notice for this Schedule C activity for the 2012, 2013 and 2014 tax years. We sent in the same response to the IRS that we had done for NYS DOTF. Not surprisingly, the IRS arrived at the same conclusion as the NYS DOTF and issued a “no change” as well.

What made this case different from many others I’ve seen with a history of Schedule C losses was the documentation and the records the member provided to substantiate his position. He took a very active role in his defense by producing documents and answering our questionnaires with very detailed explanations. With my audit defense strategy and his documents, we were a power duo with a hit.