Audit Defense Member went from owing $4,000 to $0!
July 29, 2024 | Written by: Kaylie J.
During the 2022 tax season, Shannon found filing taxes particularly challenging. Her husband had passed away at the beginning of the tax year, leaving her to handle her taxes alone after years of receiving assistance. To ease her concerns, Shannon decided to purchase an Audit Defense membership from TaxAudit when filing her tax return.
That following November, Shannon received a notice from the IRS stating that she owed $4,000. Uncertain about how to proceed, Shannon recalled purchasing Audit Defense when filing her 2022 taxes. Without delay, she visited TaxAudit's website and reported the notice.
After the notice was reported, Shannon's Case Coordinator, Sheri, asked for scans of the notice and relevant documents to move her case to her Tax Professional. Shannon submitted the documents promptly.
Two days later, our Tax Professional, Airam, called Shannon. She had reviewed the documents and wanted to let her know she had not correctly claimed her late husband's income on her tax return. Airam explained that adding the missed income would likely result in a higher tax and more money owed to the IRS. But, to resolve the issue with the IRS, and to avoid additional interest and penalties, Airam suggested that Shannon pay the amount owed on the notice.
However, after getting off the call and discussing the case with her team, Airam learned that one of her colleagues had previously dealt with a similar situation. The taxpayer they worked with also had a deceased spouse, and the Tax Professional was able to prove that the situation would cause financial hardship for this member. In turn, the IRS had removed the late spouse's income and the taxpayer did not owe any additional tax.
Following this conversation, Airam immediately contacted the IRS. The IRS examiner was sympathetic and suggested that Airam submit a response explaining Shannon’s situation and attach a copy of her husband’s death certificate.
After concluding this call, Airam contacted Shannon to let her know about the possibility of taking these next steps. Shannon expressed her willingness to proceed, thanked Airam for her extra efforts, and shared her appreciation for exploring this option.
That following week, Airam submitted a response to the IRS and informed Shannon that it could take up to three months to hear back from them. Two months later, the IRS sent Shannon a letter telling her they needed 90 days to review her case. Every month after that, Airam checked in with Shannon, asking if she had received any responses from the IRS. If no mail had been received, Airam would reach out to the IRS to check on the status.
Five months after sending the response, Airam called the IRS and discovered that Shannon didn't owe any money and would receive a refund within 30 days! Shannon was thankful for the news.
Our Tax Professional, Airam, made this outcome possible. She showed that teamwork and dedication can lead to the best possible outcome for our members. In turn, she was able to save Shannon $4,000!
*Some names and identifying details have been changed to protect the privacy of the individuals.
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