This week, after only a single prompting by our office, the State of Texas recognized and corrected a filing error in record time, salvaging and bringing new hope for a small Texas business.
Two years ago, a small cleaning company called for our free 30-minute audit consultation and after learning about their company and their situation, I advised them not to hire anyone for audit defense. Their services were straight forward, we estimated the tax due and agreed representation wasn’t frugal but instructed them to call if things became uncomfortable.
The audit went as expected. To buy time and to game plan, we assisted them through filing for a Redetermination Hearing and subsequent Insolvency Settlement Proposal. Everything was moving along fine until a second hearing for this same audit surfaced. After several conversations and emails, the State acknowledged that the second hearing wasn’t necessary and agreed to cancel it.
It wasn’t until the Enforcement Division froze the client’s bank accounts last week and seized all the funds in the accounts that we had any inkling that something had gone wrong. The client was frantic, panicked, angry, and deflated.
I immediately suspected what had transpired, that an accidental closing of both hearings had occurred. I contacted the supervisor of the Administrative Hearings Division and explained the history of this audit and hearings to him. Within a few hours, I received an email from him admitting that the State had made a mistake and closed the hearing in error. The freeze on the client’s bank accounts was removed and their money returned immediately! For those of you not familiar with government processes know this is not the norm!