November 20, 2023 – The taxpayers filed an amended return showing that they actually lost money on the real estate sale and were due a refund. However, the IRS hadn’t processed the amended return.
Success Story: TAS Untangles Complex Refund Issue
Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer issues. All personal details are removed to protect the privacy of the taxpayer.
A couple with a large balance due contacted TAS for assistance. The IRS had adjusted their federal tax liability because of an unreported real estate transaction. Because of the amount of the federal tax liability, the taxpayers were subject to passport certification. Under certain circumstances, the IRS certifies to the State Department that a taxpayer owes a federal tax liability, which means the taxpayer can’t obtain or renew a passport with the State Department. Consequently, this certification limited their ability to travel internationally. The taxpayers filed an amended return showing that they actually lost money on the real estate sale and were due a refund. However, the IRS hadn’t processed the amended return.
The case advocate assigned to the case located the amended return and supporting documents and asked the IRS to expedite their review of the amended return. The IRS accepted the amended return and the taxpayers received a refund with interest. Because the large balance due was resolved, the hold on the taxpayers’ passports was removed, allowing them to travel once again internationally.
When working with the Taxpayer Advocate Service, each taxpayer is assigned to an advocate who listens to the problem and helps the taxpayer understand what needs to be done to resolve their tax issue. TAS advocates will do everything they can to help taxpayers and work with them every step of the way. Occasionally TAS features stories of taxpayers and advocates who work together to resolve complex tax issues. Read more TAS success stories.
Learn more about whether TAS can help you: Can TAS help me with my tax issue?
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