Twice Reported

In August 2023, one of our TaxAudit members, Wilson, received a letter from the IRS. The letter claimed he owed $30,000 in taxes for 2022, and a response was due in a month! After a quick review of the notice, Wilson realized the IRS claimed he had received more than $100,000 in income, which he knew could not be true. He pulled out the tax return he filed to see if he could get to the bottom of this.  

As Wilson reviewed his 2022 tax return, he remembered his Audit Defense membership. With TaxAudit, he knew he didn't have to face the IRS alone. Once the panic from receiving the notice subsided, Wilson called our Customer Service Department. In this initial call, Wilson explained that he believed the IRS had received false reports about his income. The Customer Service Representative started Wilson’s case for him and told him not to worry—TaxAudit would be able to help him with his case. 

Since the deadline was so close, Wilson’s Case Coordinator contacted him that same day on our Message Access Portal (MAP) and asked him for a copy of the notice and other necessary documents for his case. Because of the approaching deadline, Wilson submitted the documents immediately after the call.  

The next day, Wilson’s Tax Professional, Olha, contacted him and requested his 1099-NEC (unemployment compensation) and SSA-1099 (Social Security Benefit Statement) so she could review his income for 2022. She also instructed Wilson to download the Wage and Income Transcript from the IRS's website, which she used to confirm that Wilson's income was reported twice from his employer.  

Upon receiving this information, Wilson contacted his employer and obtained a letter to provide proof of his actual income. After reviewing and preparing the necessary documentation, Olha sent a response to the IRS. Wilson was relieved that the response was submitted before the deadline. Olha informed Wilson that it might take several months to receive a reply from the IRS, but she assured him that she would check in with the IRS every month and provide any updates. 

The following month, Olha informed Wilson that she had contacted the IRS, and they received the response she sent. However, the response was still in the IRS’s queue for review, and they instructed her to follow up at the end of November. Olha contacted the IRS again in November and was informed that the IRS had sent a recomputed notice a week prior.  

Shortly thereafter, Wilson confirmed that he received the recomputed notice from the IRS, and his amount owed dropped from $30,000 to $0!  

Thanks to our Tax Professional, Olha, who promptly responded and maintained constant communication throughout the case, we quickly resolved the case and achieved the outcome Wilson desired! 

This is what Wilson had to say about the case: 

“When I received a letter from the IRS stating I had not reported all of my income for 2022, I contacted TaxAudit, which provides claims made against Turbo Tax clients. After I contacted TaxAudit a Tax Professional and Case Coordinator were assigned to my issue with the IRS. The Tax Professional advised me of the documentation she needed and the additional information I needed to refute the IRS assertion that I had not reported all of my income. I provided documentation showing that the IRS was doubling the income I received from my client. The Tax Professional submitted the information, and the IRS closed the case. I was very pleased with the service provided and the resolution of the issue.” 

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