Can the IRS see that I ordered Audit Defense?

September 27, 2021 by Steve Banner, EA, MBA
IRS

Before answering this question, let’s take a few moments to review some of the reasons that folks such as yourself make the decision to order Audit Defense for their tax return. Some people order Audit Defense every year simply because they want to be protected in case they have accidentally made a mistake on their return, or in case their return is randomly selected for audit by the IRS.

For others, it’s because they are worried the IRS might disallow some of the deductions they have claimed or disagree with the way they have reported the sale of an investment property. It’s understandable that someone in this situation might be concerned that, if the IRS knew about their purchase of Audit Defense, this might be a “red flag” that invites closer scrutiny of their return (in the same way that driving a car at night without headlights invites closer scrutiny from the traffic authorities!).

But no matter what an individual taxpayer’s reason for purchasing Audit Defense may be, he or she can rest assured that the taxing authorities (such as the IRS and State agencies, if applicable) have no advance knowledge that you have elected to have representation in the case of an audit. Taxpayers can also rest assured that their return will receive a vigorous and competent defense from TaxAudit’s nationwide team of tax attorneys, CPAs, and Enrolled Agents in case it is audited by the IRS or State.

Your purchase of Audit Defense is a matter strictly between you and TaxAudit. The IRS and State have no way of knowing that you have such protection unless and until you take action to inform TaxAudit that you have received a letter or notice from them about your return. But this also means that we, at TaxAudit, have no way of knowing that you have received such a letter or notice unless and until you inform us either by calling our Customer Service hotline (800.92.AUDIT), or by emailing them at customer.service@taxaudit.com. After you have contacted us, we will review your situation and take all necessary steps to contact the relevant agency on your behalf. It is at this point – after the IRS or State has decided to question or audit your tax return - that the agency who sent the letter learns that you have contracted with TaxAudit to represent you.

To summarize the answer to this question: when a taxing agency receives your tax return, neither the IRS nor the State see that you have ordered Audit Defense. And they will never know that you ordered Audit Defense unless we contact the agency on your behalf. But please also remember that TaxAudit will never know that you have received a letter or notice from the IRS or State unless you contact us.

And just one more thing to remember – don’t forget those headlights for night driving!

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Steve Banner, EA, MBA
Tax Content Developer

 

Steve Banner began his career in the field of income tax in 1977 and has since gathered business experience in a variety of countries and cultures. In addition to the United States, he has lived and worked for extended periods in Australia, Saudi Arabia, Canada, and Sweden. Along the way he studied Adult Education and earned a Bachelor of Education, Master of Educational Administration, and MBA. He joined TaxAudit in 2016, where he is a Tax Content Developer.


 

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