TAS advocates to remove tens of thousands in tax liability based on a typo

Success Story: TAS advocates to remove tens of thousands in tax liability based on a typo

At the heart of our organization’s mission lies a commitment to advocacy. Every year, we help thousands of individuals navigate the complex landscape of federal taxes with confidence and clarity. This story is just one of many examples of how the Taxpayer Advocate Service (TAS) helps resolve taxpayer issues. All personal details have been removed to protect the privacy of the taxpayer.

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.

The case advocate worked with the IRS to have the tax liability reversed, and the taxpayer was relieved of tens of thousands of dollars in tax, interest, and penalty charges, but there was still a balance due on the account. Before the underlying tax liability was reversed, the IRS had filed a notice of federal tax lien and charged a lien filing fee. The IRS initially refused to remove the fee, but the case advocate persisted. After the case advocate submitted a formal request for abatement of the fee, the IRS agreed to remove the fee, fully resolving the balance due.

TAS succeeded in protecting the taxpayer’s rights to:

Pay No More than the Correct Amount of Tax;
Challenge the IRS’s Position and Be Heard;
Finality; and
A Fair and Just Tax System.

Today, tomorrow, and beyond, we remain steadfast in our dedication to making a difference – one taxpayer, one success story at a time. Read more TAS success stories.

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