postImage-MarkCummings-0911a559-9035-4298-a298-ced60defbc28.JPGFanatical Customer Service means doing whatever it takes to meet the customer's needs.

We had a customer come into the office in August 2014 with an audit letter for 2011 from the IRS. The customer was a truck driver that was often on the road and did not get mail frequently. The IRS audit centered on a Schedule C (business) and the associated expenses claimed. After reviewing the information, I determine the customer taxes were not prepared properly. I prepared an amended return and wrote a cover letter for the customer to submit to the IRS. We also filed out a Form 2848 (Power of Attorney) to aid in contacting the IRS.

The return was originally incorrectly filed claiming unreimbursed employee expenses on a Schedule C with no income reported by the customer (or anyone else). The amended return correctly moved the unreimbursed employee expenses to Schedule A and delete the associated documents including the Schedule C.

The IRS responded and requested the company’s reimbursement policy and associated receipts. The customer provided over 20 pages of receipt but was delayed in getting a copy of the company’s reimbursement policy (since he was driving cross country). Since the IRS did not receive the reimbursement policy of the company by their deadline they rejected the entire amended return. The IRS computers converted $13,500 worth of expenses claimed on schedule C into $13,500 income on Schedule C. When I called the IRS, the phone representative identified a probable IRS computer glitch which inadvertently switched the expenses into income (even though no one reported income other than on a W-2). The representative would contact the auditor to note the problem.

However, since the response did not meet the IRS deadline, no changes were made and the IRS began collection procedures on the additional income tax of $13,500 and associated SE taxes on the $13,500 of income. The customer got an IRS letter dated January 30th, 2015 noting the necessity to respond by January 15th, 2015 to keep the case open (the letter was sent two weeks after the deadline for a response). I contacted the IRS and was told the case was closed, the client owed the money and the only additional action was to request audit reconsideration. The IRS representative could not explain why the IRS kept the erroneously changed $13,500 expenses into income which resulted in a $27,000 shift in income (from expenses claimed into income).

We prepared and filed the paperwork for audit reconsideration and contacted the local Congressman to assist in the customer’s request. An independent IRS auditor contacted my office and reopened the case for consideration. We finally got the IRS to agree to the amended return I prepared in August 2014.

While I did not prepare the client’s original return, the customer greatly appreciated the fanatical customer service that was need to fix a lengthy complex problem and stop IRS collection efforts against an erroneously claimed caused partially by the IRS.

 authorImage-MarkCummings-2260db93-7929-47cf-812c-a35a681e8988.JPGThe customer is now a fanatical fan of the service provided by Liberty Tax (in Liberty, Missouri).