Timing is Everything
We were contacted by a couple who live in the East Bay Area because the IRS had begun an audit of their individual tax return. The IRS threatened and disallowed their entire Mortgage Interest deduction. This meant that the IRS audit regarding their tax deduction(s) resulted in a tax bill of $33,954 plus a $6,790 tax penalty.
Luckily, the couple contacted our tax law firm based on the IRS notice. They thought they wanted an Offer in Compromise. Once we met with our clients and discussed the facts of their case, we thought the IRS was wrong and that they were entitled to the majority of the tax deduction. Luckily, they had contacted us in time too. We therefore recommended that our clients fight the IRS audit. We also recommended that our clients NOT pursue and Offer in Compromise, as we believe that they likely did not owe the tax the IRS claimed they did and that an Offer in Compromise would actually be detrimental to their credit and overall financial position.
They hired our tax law firm to defend them against the IRS audit. Steve and Chris represented them before the IRS audit division, argued that our clients were entitled to their deduction, and WON. This lowered the tax from $33,954 to $7,500. Additionally we fought the imposing of the IRS tax penalty and WON that too. The IRS agreed to remove 100 % of the tax penalty associated with the audit which would have been $6,790.
*The results portrayed in the cases mentioned on this site were dependent on the facts of that particular case, and the results may differ if based on different facts. The case study and/or success stories shared herein are for informational purposes only. It is not intended to and do not constitute legal advice. For more information please call 1∙888∙TAX∙DEAL or (415) 394-7200 or complete our contact form.