In October 2022, TaxAudit members, Ben and Jen, were getting ready for Halloween. The couple decided to go all out this season – they went to the store and bought more than enough candy to pass out for a few hours. When they were putting up the yard decorations, the pair decided to go check the mailbox. While sifting through the bills and credit card offers, the couple received the spookiest letter they could have imagined —a letter from the IRS. After examining the notice, they realized they had received a CP2000 for their 2020 tax return. This letter was questioning Ben’s income—which included SSI and unemployment compensation.
After the initial panic upon receiving this notice, Ben and Jen opened one of the bags of candy and started to review their 2020 tax return. While trying to look through the document themselves, they got to the end and were still confused about why they were being audited. They understood what the letter was asking from them, but when they were reviewing the document, they were unable to see what was wrong with their tax return. However, that was when Jen found a page that showed that they purchased an Audit Defense Member from TaxAudit. Relieved that they didn’t have to go through this process on their own, they called TaxAudit the next day.
After contacting Customer Service, Ben and Jen uploaded the notice as well as other documentation the IRS was requesting. In just a few days, their Tax Professional, Greg, contacted the couple. Greg explained what exactly the letter meant and why the couple received the letter. The reason was that the couple's SSI and unemployment compensation increased their income – however, the IRS was not calculating the owed tax correctly. After explaining why this letter was issued, Greg shared what the next steps would be. Because this was a mistake on the part of the IRS, he would contact them on Ben and Jen’s behalf, and ask for a correction. He also noted that there was one part of the notice in which the IRS was correct. In this case, Greg let them know he would request a penalty abatement for this portion of tax owed since they had historically filed their tax returns correctly.
After feeling relieved that their audit was in proper hands, they had a great Halloween and handed out all the candy they had. However, after the holiday passed, the waiting game commenced. Fortunately, Ben and Jen were not worried because Greg was in constant contact with the couple on the progress of their case.
As with most IRS processes, days turned into weeks; weeks turned into months. During this time, Greg was persistently contacting the IRS while also keeping Ben and Jen updated along the way. The ten-month mark rolled around and finally, Greg had some great news. The IRS agreed not only to the correction but also to the abatement! In total, the IRS notice was incorrect by $2244 and the penalty abatement acceptance of $1366. In the end, Greg was able to save our members $3610!
*Some names and identifying details have been changed to protect the privacy of the individuals.