Chronicles of Tax Advisors
This is another case in which we saved a client hundreds of thousands of dollars. An IRS audit of his previous tax years yielded a $150,000 increase in taxes and over $50,000 in interest and accuracy related penalties. After walking away from his prior CPA, who was unable to grasp what was required by the IRS, the client came to Tax Advisors. With extensive knowledge and experience in these types of cases, we were able to reverse the damages of the audit through an audit reconsideration process. The case involved the client’s two businesses as well as his personal return. The IRS was at first dismissive in our pursuit to reopen the case. However, as we pointed out that not all information had been provided for them to make a truly informed decision, the IRS agreed to consider our argument. We walked the IRS through each adjustment and confirmed as we proceeded their agreement to that adjustment. In the end, our client only owed approximately $10,000. On the other hand, the client actually received interest income from one of the audited years since it produced a refund. Additionally, subsequent tax returns yielded more than enough refunds to wipe out the remaining debt from the audit reconsideration, and interest income was awarded on those refunds as well. In the end, the client walked out of the deal unharmed and tremendously grateful.
Todd Ancona, EA
Licensed to practice before the Internal Revenue Service
An Enrolled Agent (EA) is a federal authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audit, collections and appeals.