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Challenged IRS Assessment Results in $37k Refund to Taxpayer

Facing an IRS audit can be a nerve-wracking experience for any taxpayer. The fear of potential penalties, interest, and the daunting process of dealing with the IRS can be overwhelming. In this blog post, we share a fascinating case study of a taxpayer who found themselves in the crosshairs of an IRS audit, facing substantial tax liabilities, penalties, and interest. However, with the help of our firm’s expertise, we not only tackled the audit but also uncovered an error that led to an astounding $37,000 refund for the taxpayer. Let’s delve into the details of this remarkable journey and gain insights into IRS audits, penalties, and how expert assistance can make a significant difference.

The IRS Audit and Its Consequences:

The story begins with our client, who received an unwelcome notice from the IRS informing them of an impending audit. As the taxpayer nervously prepared for the audit, they were hit with a significant amount of tax, penalties, and interest after the IRS completed its assessment. The weight of the financial burden seemed unbearable, as the taxpayer feared the consequences that lay ahead.

Collections and Payment Arrangements:

To make matters worse, the IRS initiated collections proceedings against the taxpayer due to the outstanding tax debt. Facing the possibility of wage garnishments, levies, or liens, the taxpayer found themselves in a precarious position. The IRS then forced the taxpayer into a payment arrangement, requiring them to pay the total tax for the year in full. This further strained their financial situation, causing anxiety and stress.

Seeking Professional Help:

Amidst this challenging situation, the taxpayer sought the assistance of our firm for an unrelated matter. During our comprehensive Case Review investigation, we carefully examined the taxpayer’s financial records, tax returns, and the IRS’s audit findings. It was during this diligent review that we made a surprising discovery – an error in the 2018 tax period that had been overlooked during the original audit.

Challenging the IRS Verdict:

Empowered by this newfound information, we decided to challenge the IRS’s assessment. Armed with compelling evidence and a strong case, we presented our findings to the IRS. Our expert team worked diligently to navigate the complexities of tax laws and regulations, seeking justice for our client.

Triumph and a $37k Refund:

The effort paid off! The IRS, after carefully reviewing our presented evidence, acknowledged the error and agreed with our assessment. As a result, the IRS reversed its initial verdict, and our client was entitled to a remarkable $37,000 refund. The weight of the financial burden lifted, and the taxpayer could finally breathe a sigh of relief.

This case serves as a testament to the fact that the IRS is not infallible, and taxpayers can challenge audit outcomes when supported by accurate and well-documented evidence. Facing an IRS audit and its subsequent consequences can be daunting, but professional help and expert guidance can make a significant difference. In this instance, our firm’s dedication to our client’s case led to a remarkable triumph, a substantial refund, and the resolution of their tax issues. If you find yourself in a similar situation, don’t hesitate to seek expert assistance and stand up for your rights when facing an IRS audit. McCauley Law can help you! Contact us for a free consultation today. We’ll get you out of your Tax Jam and get the IRS off your back!


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