Does an Audit Defense membership include multiple returns?

April 07, 2021 by Kate Ferreira, CTEC
Multiple Tax Returns

You have received all your W2s, 1099s, and forms needed to file your tax return. You complete the process, your tax return looks great and, turns out, you are getting a refund – yay! You then remember that you purchased audit defense from TaxAudit last year and decide to purchase another membership this year. After all, this will give you peace of mind you are looking for in case you receive an audit or notice from the IRS or the state.

Wait – now you are confused. Did you do that correctly?
 

Since I purchased audit defense last year for my 2019 tax return, do I need to purchase a new membership this year? How many memberships do I need to buy?


The answer is actually quite simple! Since you are filing a new tax return this year, you will need to purchase a new audit defense membership! The audit defense purchased last year was for the 2019 tax return filed. Each year and each tax return you file needs its own membership.
 

But what about state tax returns? Do I need to buy a separate membership for each state tax return filed?


Nope! Audit Defense also includes any state returns filed with your federal tax return. If you were to file a 2020 Federal 1040 tax return and a California state tax return, you would only need to purchase one 2020 TaxAudit Audit Defense membership for both. In the event that you have to file multiple state tax returns, there is no need to fear – membership for all those tax returns also fall under the one membership you purchased for your Federal tax return! Sweet!
 

I help my son file his tax return, but he used my TurboTax program – do I need to buy him a membership as well?


Yes! If multiple people in your home were to file different tax returns, memberships would need to be purchased for each individual tax return. If a child is filing their own tax return, they’d also need to purchase a membership, too!
 

What about sole proprietorships?


Sole proprietorships work the same as individual tax returns. Anyone filing a sole proprietorship tax return would just need to purchase a membership for that specific tax return.
 

Do business returns work the same way?


Business tax returns are a little bit different! Business tax returns filed that are not a sole proprietorship tax return would need to purchase a business membership. For more information about business memberships, check out this link! https://www.taxaudit.com/small-business-audit-defense#cm

Whether you file a simple tax return or have a complicated tax return with many states, audit defense from TaxAudit is the best solution for peace of mind! For more information, or to purchase audit defense memberships for your tax returns, visit us at www.taxaudit.com!

SEARCH

 

Kate Ferreira
Communications Associate

 

Kate Ferreira is a Communications Associate with TaxAudit. A California Tax Education Council (CTEC) registered tax professional, Kate has been with the organization since 2015. Kate enjoys the challenge of writing about complex issues – including taxes. Outside of work she enjoys traveling, listening to vinyl, and going on adventures with her dog, Indiana Bones.


 

Recent Articles

Inheritance Tax
Whether you will be taxed on the money received from a trust will depend on the type of trust and the instructions laid out, the assets titled, and more.
Gold Bullion
You are responsible for paying the taxes on the amount realized in the sale. The buyer is generally not required to withhold income taxes on the proceeds.
Tax Extension
As taxpayers, we are personally responsible for filing our returns both on time and accurately. Failure to do one or both can result in significant penalties.
Concerned couple looking over finances
Generally, the IRS has ten years from the date tax is assessed to collect a delinquent tax liability. However, the answer is not that straight forward.
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.