TAS assisted a taxpayer who had been audited for tax years 2013-2015. The taxpayer received notification of audit on his 2016 return for the same issues including exemptions, the Earned Income Tax Credit, and the Child Tax Credit. TAS quickly researched the taxpayer’s account and discovered for 2013 & 2014, the taxpayer was examined and the audit was closed with no changes and his refunds were released.
The IRS examined the taxpayer’s 2015 return and disallowed the same issues that had been accepted on the taxpayer’s 2013 and 2014 returns. The taxpayer requested an audit reconsideration on his 2015 return and the IRS allowed the deductions and related credits; however, when the IRS corrected his account they failed to remove the EITC Recertification Indicator. This error caused the taxpayer’s 2016 return to be selected for audit. Based on these findings, TAS pushed back to the IRS about the 2016 audit. TAS addressed the IRS’s failure to remove the EITC Recertification Indicator and addressed IRS guidance regarding “Repetitive Audits” of same issues that result in no changes/allowances. Based on this information, the IRS removed the EITC Recertification Indicator, closed the 2016 audit case, and released the taxpayer’s 2016 refund.