One of the most frequently asked questions we get from our customers is, “Can I buy audit defense for tax returns filed in previous years?” The short answer is: Yes!
A common misconception surrounding audit defense is that you can only buy a membership for the current year’s tax return. However, we actually recommend that you not only purchase an audit defense membership for the current year’s tax return but that you also buy memberships for at least the two or three prior years of previously filed tax returns. The reason we recommend purchasing at least three years of audit defense memberships is due to the statute of limitations in which the IRS can audit someone’s tax return, depending on the date they were filed. Generally, the IRS has three years after the federal return is filed to audit the return. This amount of time is known as the statute of limitations. However, there are circumstances where the statute of limitations can be extended to six years, seven years, or indefinitely. We also recommend that you purchase memberships for any tax returns filed late, tax returns that were complicated, or tax returns that you simply aren’t sure about. (An important note: In the event of perceived fraud, the IRS can audit any previously filed tax returns, regardless of the statute of limitations.) Of course, if it is not in your budget to purchase several memberships at once, no worries at all! You can space out the purchase of the memberships as much as you need to – just keep in mind that all memberships have to be purchased prior to the receipt of any notice from the IRS or any state taxing agency for the membership to be considered valid.
For those who may be new to purchasing audit defense, I’ll provide you a quick explanation on how purchasing audit defense from TaxAudit works! At TaxAudit, the memberships you purchase cover a specific return. To purchase a membership, you pay a flat, one-time fee and that fee provides you audit defense for that specific tax return for as long as that return can be audited. For example, if you filed both a Form 1040 Individual Income Tax Return and a Form 1120 Corporation Income Tax Return for the tax year 2020, you would need to buy a separate membership for each of these specific tax returns. In case you ever receive a notice from an income tax agency about either of these two returns, we will be there to help you out! Not only do we provide memberships for 1040 and 1120 income tax returns, but you can also purchase memberships for S-Corporation income tax returns (Form 1120-S) and Estate and Trusts income tax returns (Form 1041) as well. Lastly, corresponding state tax returns are also covered under each membership – so if you purchase a membership for your 2020 1040, all filed state returns for that year are included!
(The only exception we have at TaxAudit is for business entities with gross receipts exceeding $5 million and/or 10 partners/stockholders/beneficiaries/members. They are not eligible for memberships.)
The benefit of having memberships for previously filed tax returns is the peace of mind that comes with them. In the event that you receive a notice regarding your income tax returns, you would call us immediately, send us a copy of the notice, and our tax professionals will take it from there! They develop appropriate strategies, review and submit all necessary documentation, schedule and attend all necessary meetings and phone calls, and ensure that you never pay more taxes than you rightfully owe. Our tax professionals are experts in their fields and work with taxing agencies across the country every single day so that taxpayers don’t have to!
If you would like more information about audit defense and what it entails, I encourage you to check out our website at TaxAudit.com or call our Customer Service team at 800.922.8348 and they will be happy to answer any questions you may have. If you are curious about whether an audit defense membership is worth the investment, below are some testimonials from our current members who have used our services just in the past month!
Ann went above and beyond in representing me in my audit case. She was my biggest advocate and her work shows it!
This is the second time I have had to use Tax Audit. They are consummate professionals and saved us thousands of dollars the IRS mistakenly said we owed.
Robert was very helpful. It was my first time having problems with my return, so I'm thankful he was able to be the middle man with the IRS for me. If any problems occur in the future, I'll be using Tax Audit again.
Larry was very professional, all the while he eased my "tax" anxieties. He came across as one who is cool, calm, focused and attentive during the entire process.
Douglas was very professional. He helped me understand the process and particulars. He provided great assistance to resolve the issue. I would highly recommend TaxAudit and Douglas to anyone.