On June 29, 2022, Jenna nervously opened a letter from the IRS only to receive bad news: she was being audited. The form she had received was a CP2000 notice stating that the income she reported for 2020 did not match the income that had been reported to the IRS, and she now owed over $16,000 for the 2020 tax year. Her mind raced as she tried to figure out how this could happen and who she could go to for help. After carefully considering how she should handle the situation, Jenna decided to reach out to TurboTax for advice. That’s when they reminded her she had purchased Audit Defense for the 2020 tax year and recommended that she reach out to a TaxAudit representative.
After contacting TaxAudit’s Customer Service team, Jenna was immediately paired with a Case Coordinator who walked her through the process of collecting the paperwork necessary to handle her case. They requested a copy of the CP2000 notice from the IRS, her 2020 tax returns, and the documents necessary to obtain a Power of Attorney. Then, they assigned her to a Tax Professional who would represent her throughout her IRS audit.
Shortly after being assigned to Jenna’s case, her Tax Pro, Michele, diligently reviewed the IRS notice along with her tax documents and was able to explain the reason for the IRS audit. Jenna and her husband had received Coronavirus-related qualified disaster distributions which shouldn’t have been subject to tax - but the IRS had overlooked the 8915-E forms, stating that these distributions were Coronavirus-related and they should be taxed as normal income.
After discovering the issue, Michele reached out to Jenna with the best and worst-case scenarios for her audit. The best case was that the IRS would accept the forms they were sending over with the supporting 8915-Es, and Jenna wouldn’t owe anything. The worst-case scenario was that she would owe over $16,000.
Once she had explained both scenarios to Jenna, Michele sent the response to the IRS. Enclosed in the response were the 8915-E forms, along with the other necessary documents to prove that Jenna and her husband had received Coronavirus-related disaster distributions and were not required to pay taxes on them.
With the backlog of work that resulted from the pandemic, the IRS had been dealing with delayed response times and could take anywhere from six to eight months to address responses sent in to them. Jenna and her husband waited anxiously while the IRS reviewed the case but, by September 29th, only three months after receiving the initial audit letter, she received a revised CP2005 notice stating the IRS had accepted the response with the best-case scenario. Jenna and her husband owed nothing as opposed to the $16,000 from the original CP2000 notice!
At the end of the process, Jenna was thrilled with Audit Defense, the result of her case, and the professionalism of her Tax Pro. She had this to say about the experience: “Michele was awesome! From the beginning, her demeanor and knowledge gave me the confidence that we were going to win. I would highly recommend and use her anytime I need tax assistance.”
*Some names and details have been changed to protect the privacy of members.