Yes, the IRS did investigate and sent me a notice stating that I owe $0 in taxes. If you encounter a similar situation, you might receive a CP2000 notice. This notice will give you three options. If I remember correctly, the options are: 1) Agree and pay, 2) Disagree and… 3) Authorize someone else to represent you in dealings with the IRS. I chose to disagree and sent a detailed explanation of the situation.
