An individual residing in San Jose, California hired Timberline Tax Group for account representation in order to help with resolving her IRS tax liability estimated at $701,314. Upon initial discussions, the taxpayer had two years that the IRS placed in an audit and disallowed many claims on the return, causing a large balance due for each year. The Enrolled Agent determined that an audit reconsideration would be the best strategy moving forward in order to reduce the liability owed. The client provided boxes of documentation for personal and business records from the years in question. Every document was reviewed, categorized, and compared against the IRS audit findings to disprove the proposed amounts. Every finding was then documented and organized amongst spreadsheets and 10 binders were provided to the IRS Audit Examiner to contest the audit findings.
Almost a year later, after continuous negotiations with the Audit Examiner, a determination was made. The IRS agreed with our findings and the proposed audit amounts were reversed, lowered the overall liability owed. This action ended up saving the taxpayer $624,825.15!