What does Audit Defense include?

January 29, 2021 by Samantha Lamb
Tax Professional going over audit letter with couple

When you purchase Audit Defense from TaxAudit, you’re purchasing more than just assistance with your IRS or state notice. You are choosing peace of mind, education, and the ability to have someone help you through one of the most troubling times you may have to go through. You may wonder, though, what exactly does your audit defense include?

Our audit defense package includes both your state and federal income tax returns, as well as those that may have been filed late. If you receive a notice from the IRS or a state taxing authority, you will need to report that notice to us, and we will get your case started. You will be assisted by a team of people who will help you from start to finish with your notice. First, our Customer Service reps will create a case for you. From there, you will be assigned to a Case Coordinator who will give you an overview of the process and assist you with sending in your documents. You will then be assigned to a tax professional based upon the type of notice you have received. Your tax professional will work with you to determine whether the notice is correct and work on your behalf so that you do not pay any more tax than you legally owe. We handle the correspondence with the IRS or State Agency, which includes all communication, phone calls, appointments, and messages.

Common IRS Notice Types

 

Auditor pointing his finger at a worried taxpayerIn this blog, we will focus on a few of the more common IRS notice types that our audit defense members typically see. It is important to note that there are many different types of IRS notices. Even if it is not discussed here, we want you to contact us about any and all notices you may receive.
 

CP2000

One of the most common notices that our audit defense members receive is a CP2000. These notices are computer-generated and issued when the IRS receives records that do not match what you reported on your tax return. This notice will propose changes based on those discrepancies. If you receive one of these notices, your tax professional will ask you for supporting documentation to verify if the differences that the IRS is showing are correct or not. If they are not correct, your tax professional will respond to the IRS to dispute the changes to your tax return.
 

Earned Income Credit (EITC) Notices

In addition to the CP2000, notices regarding Earned Income Credit (EITC) are another type of frequently issued notice seen by our audit defense members. The IRS issues this notice type to verify the dependents and household situation you reported on your income tax return. Sometimes, when these notices are issued, your refund may be partially or totally frozen until supporting documents are provided. After you report your notice to us and are assigned to a tax professional, they will help you understand what supporting information to gather. From there, they will create and send a response to the IRS to verify the information on your return.
 

Notification of Audit

IRS letters and notices vary across a broad spectrum from simple to complicated. No matter what type, it is always important to report them to us in a timely fashion. Among the more common letters you may receive from the IRS is one notifying you of an audit. Audits tend to be more complicated than other types of notices because an IRS Examiner is looking at your return to verify the information you have reported. Common areas that are audited are itemized deductions, expenses for a small business, or income from rental properties. It is very important to make sure your records are intact and ready to prove the numbers you claim on your return. Your tax professional will do a thorough review of your letter and your return and work with you to respond to the IRS.

Throughout your case, no matter the type of notice, your tax professional works to make sure that the examiner or agency is held accountable for the determinations they make about your tax return. In the event that you do owe money, we endeavor to make sure it is not more than you legally owe.

The risk of being audited is uncertain. What is certain is that you will not find a better deal out there than a pre-paid audit defense membership. If you use TurboTax to prepare your taxes, you can purchase audit defense as a bundled service within the TurboTax program. Audit Defense can also be bought as a stand-alone service. For more information about the benefits of our audit defense program, visit: https://www.taxaudit.com/prepaid-audit-defense.

For a more in-depth look at how we help Audit Defense members with state issues, please click here.

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