When the IRS questions your tax return, the process can feel like stepping into a maze with no clear exit. For many taxpayers—especially those with dependents, multiple credits, or unique life circumstances—one misinterpreted document or mismatched address can trigger months (or years) of uncertainty.
For Owen and Annie, that journey lasted nearly two years. It spanned dozens of IRS contacts, multiple document submissions, repeated case closures, and a frustrating cycle of “wait and check back later.” But thanks to TaxAudit’s persistence, expertise, and structured audit-defense process, their case ultimately reached the best possible conclusion: the IRS issued their long-awaited refund, complete with interest.
This is the story of how it happened.
When an Address Error Changes Everything The issue began when the IRS sent Owen and Annie a notice denying several credits on their 2021 tax return, including the Child Tax Credit and the American Opportunity Tax Credit.
The letter stated that Owen and Annie had not proven residency for their children. The couple had no idea how the IRS would come to this conclusion. Fortunately, they knew they had purchased Audit Defense for their 2021 tax return, so they immediately logged onto TaxAudit’s website and started a case. Our automated system instructed the couple to upload a copy of the IRS notice and corresponding tax return into our secure portal. Owen immediately sent the requested documentation. After only two business days, their tax professional, Carolina, contacted the members. She had reviewed the notice and determined that the underlying cause was surprisingly simple: The family’s tax return listed Owen’s work address, not their home address. However, the documents for their children correctly listed the residential address.
To the IRS, this mismatch suggested that the children lived somewhere else—which can disqualify dependents from several tax benefits.
To dispute the IRS notice, Carolina began gathering the evidence needed to prove the children’s residency and the couple’s eligibility for the credits. This was no small task, as the family needed to provide many documents, including utility bills, medical records, school documents, and personal receipts, to show proof of care.
Even with all of this, the IRS continued issuing letters claiming a lack of sufficient proof, and eventually determined the case was “closed.”
Fortunately for Owen and Annie, Carolina didn’t give up. Over the next year, she pursued multiple procedural paths, including working with the IRS Office of Appeals and even filing for an Audit Reconsideration. She followed up relentlessly, calling the IRS every 45-60 days to check on the status of the case.
After almost two years of back and forth, the IRS confirmed receipt of the documents, acknowledged the validity of the proof of residency, and closed the case. As a bonus, it turned out that Owen and Annie were due a refund from the IRS – almost $9,000 with interest. They received this check in the mail shortly after the case was closed.
At the conclusion of their case, Owen wrote a heartfelt note of gratitude, praising Carolina’s patience, communication, and persistence. “I want to especially acknowledge the patient and persistent work you have dedicated to my case, including your consistent communication with the IRS. Your professionalism and expertise have been invaluable throughout this process.”
Owen and Annie’s story is more than a successful audit defense story—it’s a testament to what happens when expert tax professionals advocate relentlessly for taxpayers. While navigating the IRS can be overwhelming, no one should have to do it alone. And if you have TaxAudit on your side, you won’t have to!
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