Do You Have Audit Insurance?

Author: Keith Huggett 

You might not think this is a serious topic, but it really is. If you do not have audit insurance you should probably purchase some. According to Accounting Today, despite cuts to personnel and their budget, the IRS has increased the number of audits performed by 20% since 2009. An audit defense plan can be bought as part of your tax or business package, or it can be bought as a single item. If you get audited and you do not have an audit defense plan in action, the costs of dealing with the IRS or State Agency are going to quadruple, and I'm not only talking about monetary costs. Without an audit defense plan, you have to deal with the stress and anxiety of dealing with the IRS all on your own, which is something you really do not want to do. It is so much better for you to let a tax professional help you. It's our job and we can make the process much smoother for you.

An audit defense plan covers you on a month to month, or annual basis from the time you purchase the plan, until you stop service, depending on where or with whom you get the plan. It is very similar to any other insurance plan.  You are provided with service, should you be audited, while covered. Should you stop payment on your plan, your coverage ceases along with your audit protection.

While you are covered, if you receive any government notice regarding your income tax return you will have the safety and security of knowing that you are protected by a qualified, experienced professional who will fight your battles with the IRS or State agency. This means that when you get that letter, you just send it to your tax professional and they should handle it. Your tax agency should also represent you in either a correspondence, field, or office audit by any government agency with no additional fees.  If your audit goes to appeals there may be some additional fees. 

You should be aware that not all tax offices offer their audit defense plans in this manner and their terms may be different.  At The Tax Office, Inc., we offer our audit defense plans in conjunction with our business and tax packages. Please contact us with any questions you may have about our audit defense plan. We also provide helpful information on our website for when and if you receive that notice of audit for your personal or business return.