It was May, and our TaxAudit members, Marie and Jake, were on their outside porch watching their grandkids play on their front lawn. The April showers did bring May flowers this year, and the family would enjoy every moment of the perfect weather outside. Jake was getting up to get another glass of some fresh squeezed lemonade when their mail courier got out of their car to hand deliver the couple's mail. The courier they have known for years handed the couple their mail, and they quickly catch up. Marie takes the mail as Jake continues to get his lemonade. While rifling through bills, junk mail, and packages, Marie notices they received a letter from the IRS. It can't be anything too serious, right? Unfortunately, despite their positive thoughts about their IRS letter, the couple opened it to see that they received an IRS CP2000 notice for their 2020 tax return regarding their retirement and employment income.
That night, once their grandkids returned home, they took out their 2020 tax return, and tried to determine what mistakes they might've made when filing their tax documents. Jake went to serve himself some coffee when Mary finally did her first review and noticed something that Jake didn't -- they purchased audit defense from TaxAudit when filing their taxes for that year. Finally, the couple got some relief knowing that they would have the help of Tax Professionals on this audit. The first thing they would do was contact TaxAudit for some assistance.
After navigating to the TaxAudit webpage and calling Customer Service, the couple was assigned their Case Coordinator who collected their required documents. Within a few days, they were in contact with their Tax Professional, Sherry. Once Sherry reviewed the notice and their 2020 tax return, she was able to identify what the couple did wrong. Marie and Jake added an extra zero to their COVID-19 distribution received in 2021. Because of this change, the couple was tasked to update their 8915-E form regarding any 2020 disaster retirement plan distributions and repayments. Once the file was received, Sherry reviewed the document and had our internal Quality Control team confirm the records were correct. Once it was determined that the document was correct, Sherry filed the papers with the IRS.
As always, responses from the IRS take time. However, Sherry continued to diligently check in with the IRS to ensure that Marie and Jake's case was handled correctly and given the attention it deserved. After the first month, the couple received another letter from the IRS informing them of a new CP2000 notice. Jake contacted Sherry, and she reached back out to the IRS, continuing to send the requested documentation via fax and phone. Sherry sent two additional faxes, as requested by the IRS; however, they stated both times that they had not received any response from her or the taxpayers. Sherry was in the process of sending the documents via mail instead when a tragedy happened. Jake passed away. He was the individual who handled all the taxes in the relationship, and Marie was at a total loss for how to navigate this process. Sherry gave Marie her condolences and then reassured Marie that she was in good hands and that she would help explain the process and what was needed from her going forward.
Shortly after Sherry sent Marie's documents via mail, she received confirmation that the IRS had received them. As time went on, Sherry continued to check in with the IRS, updating Marie every step of the way.
After a few months of conversations with the IRS and Marie, Sherry had fantastic news for Marie. She informed her that after the IRS reviewed her case, it was determined that they actually owed Marie money!
In the end, before contacting TaxAudit, Marie wrongfully owed the IRS $47,729. After Sherry's diligence and hard work ensuring that the IRS accepted and reviewed the return, the IRS owed Marie $736.29!
*Some names and identifying details have been changed to protect the privacy of the individuals.