Effective July 24, most unannounced visits by revenue officers will stop.

A taxpayer sought TAS assistance in getting an amended return considered. The IRS initially denied the claim, stating it was not timely. The taxpayer appealed the claim denial, and the Appeals Officer confirmed the claim was timely and eligible for consideration. However, the IRS still did not process the claim. TAS issued a formal request for claim consideration, but the IRS failed to take the requested action. TAS then issued a Taxpayer Assistance Order (TAO) requiring the IRS to consider the claim. After receiving the TAO, the IRS processed the amended return and issued a refund to the taxpayer. TAS’s actions protected this taxpayer’s rights to finality and to pay no more than the correct amount of tax.  

A TAO is one of the ways that TAS protects these and other taxpayer rights. A TAO is a powerful statutory tool to resolve taxpayer problems. If TAS determines that a taxpayer faces significant hardship and the facts and the law support relief, it may issue a TAO when the IRS refuses or otherwise fails to provide the relief that TAS requests to resolve a case. TAS can issue a TAO to order the IRS to take an action, cease a certain action, or refrain from taking a certain action. TAS, however, cannot use a TAO to make a substantive determination of any tax liability. TAS may also use a TAO to order the IRS to expedite consideration of a taxpayer’s case, reconsider its determination in a case, or elevate review of the case.  

An authorized representative contacted TAS for assistance with an Employee Retention Credit claim filed by a small business they represented. After significant delays, the business was still waiting for the IRS to process their claim.  

The assigned case advocate’s hard work, organization, and follow through prompted the IRS to process the claim and release the refund. The refund allowed the business to stay open and continue providing important services to members of its community.  

The authorized representative commended the assigned employee, stating the Case Advocate “is a credit to your organization and…closure of the issue couldn’t have come at a better time!” 

The IRS agreed to return of levy. A taxpayer contacted TAS because the IRS had been levying their Social Security benefits for payment of an outstanding tax liability. The taxpayer was facing an economic hardship and needed the Social Security income for their necessary living expenses. 

The assigned case advocate determined that because of the taxpayer’s financial hardship, the IRS should release the levy. The case advocate developed a persuasive recommendation to not only release the levy but to suspend collection on the account and issue a refund for the last two years’ levy payments, the maximum allowed by law. 

The IRS agreed to release the levy, report the account as currently not collectible, and refund the last two years’ levy payments to alleviate the taxpayer’s financial hardship. 

In this case, TAS advocated to protect the taxpayer’s rights to challenge the IRS’s position and be heard and to a fair and just tax system. Read more about Taxpayer Rights. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A business’s authorized representative contacted TAS for assistance with a notice of federal tax lien (NFTL). The business filed some amended returns with the IRS to eliminate the tax liability on which the NFTL was filed, and needed the lien released before the end of the year so they could sell some property. TAS immediately began working with the authorized representative and the IRS to get the amended returns considered, using effective communication and negotiation skills with both the authorized representative and the IRS throughout the process.

TAS successfully negotiated with the IRS to have the amended returns accepted and the lien released in time for the taxpayer to move forward with the sale.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer who became disabled after working as a first responder contacted TAS for help after the IRS denied the taxpayer’s claim for refund. The taxpayer had filed Form 1040-X, Amended U.S. Individual Income Tax Return, to properly report their pension income as non-taxable. Upon receipt of the taxpayer’s inquiry, TAS asked the IRS to reconsider the taxpayer’s claim and provided documentation that the pension income was not taxable. However, the IRS again denied the claim. TAS continued to advocate in the best interest of the taxpayer by explaining their appeal rights and encouraging them to request an appeal. Empowered by TAS, the taxpayer filed an appeal, and the Independent Office of Appeals overturned the IRS’s decision and removed the non-taxable pension from income.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer came to TAS for help resolving a balance due for a prior tax year. The IRS had assessed tax based on a third-party information return. Because of a missing decimal point, the amount reported on the form was many times more than the actual amount the taxpayer received.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer and their representative came to TAS for help with several years of amended returns. The taxpayer had included non-taxable income on several tax returns and owed substantial balances on those returns. They filed amended returns asking that the non-taxable income and related tax be removed. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A certified public accountant (CPA) filed an amended Form 1041, U.S. Income Tax Return for Estates and Trusts, on behalf of their client. The executor of the estate was unable to distribute the estate’s assets to the beneficiaries and close the estate until the amended return was accepted by the IRS and processed. After waiting more than 20 weeks, the CPA requested a transcript to determine the status of the claim. Since the CPA’s Form 2848, Power of Attorney and Declaration of Representative, hadn’t been processed, the IRS rejected his request. That’s when the CPA contacted TAS for assistance.

If you’re one of several thousand people who were affected by a brokerage acquisition over-withholding, you may be issued a Form 1042-S. This has been an issue for a significant number of taxpayers, so here are the steps to take to recover the over-withheld amount. If a brokerage firm issued you a Form 1042-S for the 2023 tax year because funds were withheld and paid to the IRS from a stock conversion you were a party to, the only means to recover the over withheld amount after March 15, 2024, is to file a refund claim. In this case, a refund claim is a U.S. tax return requesting a refund. 

A Spanish-speaking taxpayer providing childcare, a critical service in high demand, was audited by the IRS. During the examination, the IRS reviewed her tax return filed as a sole proprietor and disallowed various credits, including the Earned Income Tax Credit (EITC). For lower income sole proprietors, tax credits can be critically important in helping the proprietor pay their Social Security and Medicare taxes. For this taxpayer, the need was even more acute as the refund was earmarked to help her meet the needs for her own special needs child. Two of the LITC’s volunteer attorneys stepped in to represent this mother and childcare provider in the U.S. Tax Court. With the attorneys’ assistance, the IRS disallowance was reversed, and she received all the credits she claimed on her tax return.

For several years now, the Harvard Legal Services Center Tax Clinic (the clinic) litigated whether certain Tax Court filing deadlines are jurisdictional or claims processing rules subject to equitable tolling. Pursuing the issue across the country, the clinic directly represented clients and filed amicus briefs on which clinic students worked and volunteer counsel assisted. Shortly prior to oral argument in the Eighth Circuit, the petitioner’s counsel asked if the clinic would take on the oral argument as well. A recent clinic alumna, who argued the same issue in the Fourth Circuit, agreed to argue the case pro bono with the backing of her firm. She became part of an all-woman team at the firm that argued the merits of the case successfully before the Supreme Court. In reversing lower court rulings, the U.S. Supreme Court held unanimously in Boechler P.C. v. Commissioner, 142 S.Ct. 1493 (Apr. 21, 2022), that the time period for filing a Collection Due Process petition in the U.S. Tax Court is not jurisdictional and is subject to equitable tolling. The Boechler decision has the potential to impact future court filings of many low-income taxpayers who often face challenging life situations that create obstacles to meeting filing deadlines. The clinic’s persistence in fighting this access to justice issue will help ensure that taxpayers can make the case for tolling the time period for filing a Tax Court petition when appropriate.

https://www.taxpayeradvocate.irs.gov/?page_id=32174&preview=trueA single mother in her 30s was denied her claims for the Earned Income Tax Credit (EITC) and related credits for a recent tax year and missed the deadline to appeal the decision to the U.S. Tax Court. She sought help from an LITC, which connected her with a pro bono volunteer attorney who filed an audit reconsideration request on her behalf. The attorney presented new evidence to prove the taxpayer’s son resided with her and that she provided his financial support. The IRS reversed its decision and awarded her the refund. The pro bono attorney went further, helping to amend the taxpayer’s other tax returns to claim her son as a dependent and for the EITC, which provided much needed additional refunds.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

The taxpayer and her children were in danger of being evicted. Although the taxpayer filed a tax return claiming a refund, she owed federal taxes from a previous year. The IRS normally applies overpayments to satisfy federal tax debts before issuing any refunds, but the taxpayer needed part of her overpayment to retain housing for her family.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A taxpayer entered into a Direct Debit Installment Agreement (DDIA) to pay her federal tax liability. She made her final payment outside of the DDIA process because the regularly scheduled payment would have overpaid the remaining amount owed and she was concerned that the overpayment may not be refunded quickly. She also worried her refund on a recently filed federal tax return would be delayed.

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A power of attorney (POA) called TAS for help resolving a client’s balance due. The POA had submitted documents to the IRS showing that the taxpayer did not owe taxes for the sale of a house. The documents were not accepted, and the IRS adjusted the taxpayer’s account, creating a large balance due.

A taxpayer came to TAS after her bank returned her refund to the IRS via a cashier’s check because the bank account number on her tax return was off by one digit. Although the taxpayer provided a copy of the cashier’s check showing the full refund had been returned, the IRS would only issue a replacement refund for $20.

Since 1998, Congress has authorized funding for Low Income Taxpayer Clinics (LITCs) to provide free or low-cost legal representation and tax assistance to low-income taxpayers. TAS partners with LITCs throughout the country. We are happy to share one recent example of the effective partnerships between TAS and LITCs. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

A distraught taxpayer contacted TAS for help because her mother had been in a conservatorship with a stranger. The taxpayer and her mother were unaware that the conservator had been court-appointed. 

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This success story is only one of many examples of how TAS helps resolve taxpayer issues.

When a taxpayer does not file a required tax return, the IRS has the option of preparing the return on their behalf, which is commonly called a Substitute for Return (SFR).