TAS received a call from a taxpayer who was frantic and nearly in tears. All of the taxpayer’s plans for a new home were about to go astray, although her federal taxes were paid and the closing was scheduled for the following day. She had requested several times for the IRS to provide a letter showing the status of her tax payments, but they had been unable to do so and the mortgage company would not accept the tax transcripts TAS provided several days earlier. The closing had already been changed once and the mortgage company was adamant that no further extension would be granted.
TAS quickly reviewed the taxpayer’s account information and determined, through no fault of the taxpayer, the accounts were full paid, but the payments were not applied correctly; however the transcript didn’t fully explain the taxpayer’s account status. TAS advocates collaborated to prepare and fax a letter to the taxpayer detailing her payment status. The mortgage company accepted her information and allowed her to proceed with the closing. TAS continued to advocate for the taxpayer and made sure the IRS made necessary adjustments to apply the payments correctly.