Finally!

As you may recall, we were audited by the IRS over the 2008 First-Time Homebuyer’s Tax Credit. We did everything our tax guy said to do at the time, including paying back the loan amount in full and writing a letter to the IRS. It turned out to have been bad advice, or at least ineffective. The IRS ultimately garnished our tax returns until they had paid themselves what they felt we owed them, some $3,000 in fees and interest.

But my husband and I refused to accept their decision. I mean, if someone takes that much money from you wrongfully, you fight it, right? So we ignored our tax guy and contacted the IRS directly. They were actually easy to deal with and very specific about what needed to be done. They told us to send a letter asking them to reopen the case.

This letter was more the kind of thing I had wanted to write initially. It contained zero pleading and lots of facts. Instead of “Please be nice to us because we’re good citizens,” it said, “Please reopen the case because you made the wrong decision. Here are the facts that support our position.”

Their response was not exactly speedy. For a long time we’d get a letter every month telling us that they needed more time to review our case. Then the letters stopped coming, and we didn’t notice at first. When we finally did, I started pestering my husband to call (we file under his name, so it’s complicated when I call).

He finally called them this week, and guess what? We won our case! In fact, they say that they already sent us a check for the refund. Only somehow it never arrived here, and it got sent back to them, and it seems to have been for the wrong amount anyway.

So, there will be more delay as they look into the matter, but eventually we’re going to get a nice chunk of money back. Plus, for the first time in years, we will probably get a tax refund. I wish I had the money in my pocket today, but the news that it will be forthcoming is still pretty darned good.