How long does an Audit Defense membership last?

May 13, 2021 by Kate Ferreira, CTEC
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You are a person who likes to be prepared, right? Right! This is why you choose to purchase audit defense from TaxAudit each year for every return you file. The peace of mind that comes from having to avoid the unknown expense of hiring a tax expert in the event of receiving a letter from the IRS or state tax agency is as calming as watching waves lap against the shore. You know the drill. Each time you file your tax return, you purchase an audit defense membership to defend your tax return.

However, you start to wonder, how long does my audit defense membership last?

This is an excellent question! First, we know that each audit defense membership purchased accompanies a return for that year. For example, if you purchased memberships in 2018, 2019, and 2020, those memberships would be tied to your 2018, 2019, and 2020 tax returns, respectively. We also know that both state and federal income tax returns are included in your membership (this also includes tax returns filed late!), so there is no need to purchase multiple memberships for the same tax return. And this doesn’t just apply to your individual 1040 return! Audit defense memberships can be purchased for the following returns:

 

  • Individual – Form 1040
  • Fiduciary (trust and estate) – Form 1041
  • Partnership – Form 1065
  • Corporation – Form 1120
  • S-Corporation – Form 1120S

Please note: An audit defense membership does not include large business entities with gross receipts exceeding $5 million and/or ten partners, stockholders, beneficiaries or members. 

Next, let’s talk about some key terms.

Your membership begins from the Acceptance Date. The Acceptance Date is the date that TaxAudit received payment in full for the membership being purchased. If you are curious when your Acceptance Date is, you can log into the Member Assistance Portal by clicking here to see a list of your memberships and their corresponding Acceptance Dates!

Second, the length of your membership depends on the Statute of Limitations set forth by the IRS or State. The Statute of Limitations is the time the IRS or State has to audit your tax return. For the IRS, this time frame is typically three years from the date of filing or the due date, whichever is later. For States, the time frame is typically four years.

Finally, your period of membership is the period commencing with the Acceptance Date and ending with the expiration of the typical Statute of Limitations period for the applicable tax return.

Put simply, your membership is valid as long as your tax return is eligible to be selected for audit or review by the IRS or State!

If you are interested in purchasing audit defense from TaxAudit and securing the peace of mind in the event of receiving a notice, click here!

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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.


 

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