In March of 2024, Jose and Michael received a letter from the IRS for their 2023 tax return. After reviewing their notice, they determined that they had received an IRS Letter CP2000, and the IRS was proposing an amount due of over $15,000! They combed through their documentation for the 2023 tax year and, much to their relief, found that they had purchased Audit Defense for the year in question. Jose went to the TaxAudit website and started a case for the letter he received. He was met with an immediate automated message from his case coordinator, Justin, requesting the documents needed to get his case moving forward: a copy of the CP2000 letter along with a copy of his 2023 tax return.
Once the requested documents were provided, Jose received a message letting him know that his case had been assigned to a tax professional who would assist him with his IRS letter and a video detailing what to expect moving forward. A few days later, Jose’s tax professional, Eda, reached out to review the notice and discuss the next steps with him.
The notice indicated that a 1099 had not been reported and, in turn, the IRS proposed a balance due of over $15,000. Eda explained that it appeared that the 1099 had been included on the tax return; however, it had just been filed in the wrong place. She instructed Jose to amend the return to satisfy the IRS’ requirements. Once Eda received the amended return, she composed a response for the IRS and sent it to our quality control department. After it was approved, she forwarded it to our administrative services team who sent it off to the IRS.
Eda then let Jose and Michael know that a response had been sent, and the waiting game was about to begin. She advised that it could take months to hear a response from the IRS, but to let her know if they received any additional correspondence in the meantime. A few months later, Jose and Michael did receive a new letter from the IRS – a CP2000A. Unfortunately, this letter had the same proposed amount due as the initial letter. Eda and Jose reviewed the new notice together and determined that the IRS had not accounted for the changes made to the tax return that was sent in the response package. Eda followed up with the IRS and confirmed that the examiner who had reviewed the response had erred in making the proper adjustments. A second response was requested to be sent in order for the IRS to make the corrections.
Eda worked with the quality control department to send off a second response to the IRS, requesting they make the corrections to Jose and Michael’s proposed amount due. Once again, the waiting game began; however, after a few months, Eda received a new notice for Jose and Michael. This time, they received an IRS Letter CP2005. Eda hopped on a call with Jose to review the new notice and share the good news. This new letter informed them that the IRS had accepted the changes made to the amended return and the balance owed had been reduced to $0! Jose and Michael were thrilled and appreciative of Eda’s hard work and diligence in resolving the issue!
*Some names and identifying details have been changed to protect the privacy of the individuals.
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