Tax Audit Stories

Our Information Technology team, or IT as they are affectionately called, plays a critical role in the service we provide to our members, and in our ability to provide it.
When she was recently assigned a case proposing that a member owed over $1,000,000, she knew something was amiss. Dale wasted no time and went straight to reviewing the explanation of charges section on the letter.
Recently, TaxAudit adopted a new technology to enhance our members’ experience with us. This software, which we call Glance, allows us to co-browse with our members, assisting them more efficiently and collaboratively through screen sharing and by providing live stream video help.
Tackling the IRS on behalf of our members is not something to be taken lightly. I attend to every case with a fresh set of eyes.
In our line of work, the smallest of details can make the biggest difference for our members. In this case, a little bit of teamwork went a long way – and saved two of our members almost $4,000.
After receiving a notice from the IRS questioning his $16,704 medical deduction, the member knew he had to contact our team at TaxAudit.
David correctly analyzed the situation and provided the rep with the information necessary to get an almost $8,0000 adjustment for the member, which resulted in a $2,000 refund for one of the years they were under audit. 
A decision arrived from the IRS. It was good news: they agreed to remove the failure-to-file penalty! Both Judee and the member were thrilled, as over $7,000 was relinquished from the member's amount due!
Our member received a CP2000 notice showing he owed the IRS over $200,000! We believed we could defend him based on this section of the IRC, so we filed a petition with the U.S. Tax Court.
He was desperate to get his case solved before that time, as his wife had recently been injured in a car accident and was not in a place where she could step in for him. He was even willing to just pay the IRS so he could be done with it.
As part of’s Membership Services Team, I am often a member’s first point of contact. Every time we pick up the phone ─ whether taking an inbound or making an outbound call ─ we must go in with some expectations. We expect our members to be understandably upset, anxious, or even angry about being audited.
As a Membership Services Representative at, I have the opportunity every day to make a difference in the lives of our members. Today was one such day where I felt the immediate satisfaction of providing our Core Value of Service to a member in need.
Through my continued determination on my client’s case, combined with my member’s patience, was able to finally correct the IRS’s uncompromising stance. This was an important reminder that all taxpayers are allowed, by law, to exercise their Taxpayer Rights – including the “Right to Quality Service” and the “Right to Challenge the IRS’s Position and Be Heard” while undergoing a tax audit from the IRS.
Our Audit Coordinators, or ACs, are the first assigned associates on a case when it is opened, and are there to help our members have a smooth experience sending in their initial documents.
While I have worked on many cases over the years, there is one case in particular that stands out to me – one that I believe is worth sharing. Our valued members received an initial notice stating their moving expense was being disallowed.
This was the best ending for someone who had done such a good deed for a family member. Here at, we get to make a difference in the lives of our members every single day, and I am so grateful to have had the opportunity to play a role in this particular member’s success and to help provide peace of mind to a man who was so deserving of it.
At this time, I explained to our member that self-directed IRA custodians have a fiduciary responsibility to issue an annual report to the IRS and provide the value of the IRA so that, when the RMD starts, the taxpayer knows how much to withdraw. I then asked the member to grant me Power of Attorney for all open tax years so I could review the 5498’s.
Frustrated by their continual lack of response, I filled out a Form 911 and sent it to the Taxpayer Advocate Service. It was only a short week later when I received a voicemail, informing me that a taxpayer advocate had been assigned to the case. Upon explaining the situation to our advocate, she stated she was shocked to hear how the case had been handled. She could not believe that the IRS transferred the case to another unit and then closed and swept it under the rug.
One of the first cases I was assigned after joining involved a member who had received an IRS CP2000 notice for unreported taxable retirement income. I sent out my first response to the notice in the middle of September 2015. The answer I received back from the IRS Automated Under Reporter (AUR) department achieved part of the desired result, but not all of the results I expected.
While our Audit Reps are the champions of our members, the ADAs are considered by many to be the champions of our Audit Reps. If one compared our Audit Reps to Batman, Frodo Baggins, or Sherlock Holmes, then our Audit Department Assistants match the likes of Robin, Samwise Gamgee, and Dr. Watson. They might not always be on the frontlines, but our ADAs truly enhance the level of service our members enjoy.
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