Audit Armor
Enhance Your Tax Filing Experience with OPTIONAL Audit Armor
As part of our commitment to providing exceptional client service, we are pleased to highlight a highly valued offering—Audit Armor. Developed in response to client demand, this service is meticulously designed to deliver peace of mind and robust financial protection. Should your tax return be selected for an IRS inquiry or audit, Audit Armor ensures you are well-prepared and supported, safeguarding your interests with expert care.
Understanding Audit Armor
Why It's Essential: Despite our meticulous attention to detail, the IRS can select tax returns for audits at random. Responding to these IRS inquiries is specialized work, requiring expert navigation through complex tax laws—work that goes beyond standard tax preparation. Without protection, the cost of audit representation can easily reach thousands of dollars, depending on the complexity of your case.
Cost of Representation: Without Audit Armor, the cost of audit representation can be significant, often exceeding several thousand dollars, depending on the complexity of the case and our standard billing rates.
Details of Audit Armor
Optional Service: Only available 30 days from the date your return was invoiced. We offer Audit Armor as an optional addition to your invoice, calculated at 20% of your tax preparation fee.
Comprehensive Coverage: Opting for this service means we will handle any IRS inquiries or audits related to your individual tax return (Form 1040) at no additional charge, up to 15 hours. The normal hourly rate is $450/hour.
Inclusions:
Dedicated Licensed Team Member: A licensed team member is assigned to manage your case.
Strategic Development: Collaborate to develop an effective strategy for responding to the Audit or Notice.
Comprehensive Communication Management: Handle all forms and aspects of communication with the IRS or State, including phone calls, meetings, and written correspondence regarding your Audit or Notice.
Settlement Approval: Proceed with settlements with the IRS or State only after receiving your approval.
Financial Strategy Guidance: Provide information on your strategic and procedural options if your Audit results in additional tax liabilities that you are unable to pay immediately.
Document Production: Produce extra copies of the tax return as needed.
Time Coverage for Audit Review and Examination: Cover 15 hours of time spent on audit review and examination.
Why Audit Armor?
Client-Driven Service: In response to frequent client requests, we included Audit Armor in our services to cover the cost of handling tax notices and audit representation.
Cost-Effective: Our standard fees for these services start at $2,500 and can range up to $25,000. Audit Armor offers a cost-effective solution to mitigate some of these potential expenses.
Opt-Out Option
- This service is listed as "optional" on your invoice. If you choose not to opt for Audit Armor, simply exclude it from your payment.
- Please note that this plan is available only within 30 days of receiving your completed tax returns and upon full payment of our invoice.
Understanding What's Not Covered
Exclusions:
- Pre-Existing Audits: Audits concerning IRS notices issued before your sign-up date.
- Ineligible Returns: Includes non-resident, corporate, partnership, LLC, LLP, trust, estate, gift, amended returns, or tax shelters.
- Problematic Filings: Returns known to have additional tax dues, prepared with gross negligence, filed after due dates, or those involving fraud.
- Complex Tax Issues: Problems arising from foreign income, flow-through entities, court awards, damages, bartering, cancelled debt, and certain tax credits such as foreign tax credits or electric vehicle credits.
- Legal and Fraud Issues: No legal representation in court, no defense against civil or criminal fraud, and no involvement with audits conducted by IRS Criminal Investigation.
- Documentation and Accuracy: Returns that are incomplete, incorrect, or misleading, or lacking essential documents like W-2 or 1099 forms, or with insufficient record support.
- Non-Covered Tasks: Bookkeeping activities including reconciling checkbooks, organizing records, or general record keeping are excluded from coverage.