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From Tax Troubles to Receiving a Refund

February 27, 2023 | Written by: Courtney V.
Man happy while reading letter
In October 2022, Eric received a CP2000 notice from the IRS stating that he and his wife owed over $9,700 because they had inaccurately reported their income while filing their 2020 taxes. He was anxious and disoriented by this news, but remembered that he had purchased Audit Defense for that year, and reached out to TaxAudit for help. After a short conversation with customer service, he was paired with his Case Coordinator, Jason, who helped him upload all the forms he would need for his case.

Eric’s deadline for the audit was quickly approaching, but Jason eased his mind by explaining that the CP2000 notice allows for additional time to send a response to the IRS, and that a Tax Professional would be able to help him get an extension if necessary. He also informed Eric that he should submit any additional notices he received from the IRS to him as soon as possible. Then, once he had explained how the process works, Jason assigned him a Tax Professional who would help him navigate his case.

Within a few days, Jason was contacted by his Tax Professional, Marcelina. She had already reviewed his case and identified the issue. She pointed out that he had made a withdrawal from his retirement fund, and forgot to report his 1099-R on his tax return. She also found that Eric did not report his 1040 form for qualified dividends. These two mistakes were most likely the reason for his audit.

Once Marcelina further reviewed the case, she was able to give Eric a best- and worst-case scenario for his audit. The best case was that Eric would be approved for a Covid-19 distribution and receive a refund of $260 from the IRS. The worst case was that he would have to pay the $9700 from the initial CP2000 notice he received.

After explaining the issues to Eric, Marcelina sent him a Power of Attorney form that would allow her to represent him to the IRS. She then prepared a response package to send to the IRS for their review. In this response, Marcelina made sure to include the forms missing from the original tax return and requested that Eric receive a Recovery Rebate Credit he was entitled to. She then explained to Eric that it could possibly take several months for the IRS to reply with their decision. However, she reassured him that she would follow up with them every 45 – 60 days.

Next, Marcelina explained to Eric that he would need to amend his 2021 tax return, and walked him through the process. Within just a few weeks, Eric received a letter from the IRS stating that instead of owing the $9,700, he would actually receive a refund of over $800. Eric was thrilled at the end of his case, and had this to say about his experience with Marcelina and Audit Defense:

“Marcelina was wonderful to work with. She's very knowledgeable and communicates clearly with impressive patience. I really enjoyed working with her and I'm so pleased with the outcome she helped me achieve.”

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

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