Federal Tax Audit Protection
Why does one even need federal tax audit protection? What are the chances? Well, the chances are actually slim to none that you’ll end up being audited. There are different things that trigger them. Sometimes it can simply be due to mistakes made on your tax return. The IRS has a category for honest mistakes and another for reckless mistakes. Know the difference! Also, different deduction and credit claims can result in drawing more close attention to your finances. The home office deduction is a big attention grabber if you didn’t already know.
When you use an online tax service they’ll provide you with a comprehensive audit support solution. While you’re working on your return there will be an audit-risk meter that shows you in real-time what the chances of being audited are based on the information in your tax return. Should you actually face a real audit, you will then have the benefit of a tax professional being assigned to your case who you will be able to work with. You’ll also be able to review your documents before the IRS does which will enable you to feel less nervous about the first meetings.
Tax Resources is the oldest federal tax audit protection company and currently works with TurboTax and their customers through a program which requires a preemptive purchase of the defense suite. You can use this protection for prior years but again this must be purchased before an audit is actually underway. If you file your tax return late there will be an additional fee for protection.
In Tax Resources own words you will get:
Handling all communications, including letters and/or telephone calls with the IRS or State regarding the audit.
Assigning the Audit Representative(s) to manage your case.
Developing a strategy with you and then meet with the IRS or State on your behalf.
Negotiating with the IRS or State through Appeals and pre-litigation Appeals review prior to trial in Tax Court.
No settlement will be reached with the IRS or State without your final approval and consent.
Two hours of collection assistance is available on request if your covered audit results in additional tax due.
So if you’re looking for federal tax audit protection that about sums things up.