When TaxAudit member Manon opened a letter from the IRS about her 2023 tax return, she was understandably alarmed. The notice referred to a potential frivolous tax return issue, threatened a possible penalty, and did not clearly explain what part of the return the IRS believed was wrong. To make matters more stressful, she was living outside the United States, and mail delays meant the notice arrived weeks after it had been issued.
Feeling overwhelmed and unsure how to respond, Manon remembered she had Audit Defense for her 2023 tax return and turned to TaxAudit for help. She opened a case online and uploaded the IRS letter and her 2023 tax return to TaxAudit’s secure portal, giving her case coordinator, Lisa, the documents needed to assign her case. Manon was then assigned to TaxAudit tax professional, Edward.
After reviewing the case, Edward determined that the notice appeared to involve the foreign earned income exclusion claimed on the return. He contacted the IRS to find out what exactly the agency believed was frivolous about the return, as he could not find anything himself.
The first call did not bring a clear answer. The IRS representative could not explain what needed to be corrected and referred the tax professional back to the notice, even though the notice itself did not provide the details needed to resolve the matter. Not willing to settle until answers were received, Edward called the IRS again to demand answers.
During this second call, Edward spoke to a different representative, again explaining the situation and asking for answers. The IRS representative once again directed Edward back to the notice, stating that to gain clarity, he’d need to review the information in it.
Finally, after a third call and speaking to a third representative, Edward received the answer he was looking for. After reviewing the member’s return, the IRS representative confirmed that it contained nothing frivolous. They stated that the IRS would issue a letter of apology and release the member’s refund.
Shortly after Edward’s third call, Manon’s refund was released. Even better, the refund included interest. What began as a confusing and stressful situation ended with the IRS acknowledging that the return was not frivolous and taking action to correct the issue.
Before closing the case, Edward also took time to explain the next steps, including how to handle the interest received on the refund. He also shared recordkeeping tips for Manon’s self-employment, helping her feel better prepared for the future.
At the closing of her case, Manon had this to say:
Edward was friendly and reassuring about a seemingly hopeless situation from my attempts to get through to the IRS on my own. Edward was able to get a competent IRS agent to look at my return and determine there was nothing wrong with it at all. Once Tax Audit got involved, my case was resolved in my favor quickly without any effort on my part. Thanks so much!
This case is a great example of how valuable professional representation can be when an IRS notice is confusing, incomplete, or difficult to understand. With persistence and experience, TaxAudit secured answers, achieved a favorable result, and turned a stressful IRS notice into a success story.
*Some names and identifying details have been changed to protect the privacy of the individuals.
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