IRS Accepts Audit Reconsideration for Unreported Mutual Fund Sales Transactions in Mattawa, WA
IRS Revised Audit Outcome – 01-17-2021
Taxpayer Situation: The taxpayer received a CP 2000 for unreported mutual fund sales transactions in 2019 and did not respond. The taxpayer believed that since they were all mutual fund sales and not common stocks, he did not have to report them. He thought that the mutual fund was reporting the sales. The taxpayer was accessed with 17,996 in additional taxes for the year 2019. The taxpayer did not know how to respond, so the situation worsened, and the IRS issued a Letter of Determination. The Letter of Determination gave the taxpayer the right to Petition the U.S. Tax Court. At this point, the taxpayer knew he was way in over his head, saw a Legacy Tax & Resolution Services commercial, and called our office.
Resolution Outcome: Legacy Tax & Resolution Services successfully negotiated an Internal Revenue Service Audit Reconsideration for a client in Mattawa, WA. Legacy Tax & Resolution Services petitioned the U.S. Tax Court and got the case moved back to appeals. Appeals deferred the case back to the Audit Division. Over the course of 2 months, Legacy Tax & Resolution Services worked with the audit division and provided all mutual fund sales transactions and their cost basis. Legacy Tax & Resolution Services was able to secure a “substantially reduced” audit result for the taxpayer in the amount of $2,568
Total Savings: $15,428
If you need help negotiating with the IRS or State, don’t hesitate to contact Legacy Tax & Resolution services at (855) 829-5877