Audit protection: What it is and what it can do for you
Nothing strikes fear in the heart of a taxpayer more than a notice from the Internal Revenue Service. It can be jolting to receive any type of communication from the IRS-no matter the complexity of the request or the issue outlined. That’s why so many taxpayers look to audit protection services-to ensure they have a partner to support them through the process.
So, what exactly is audit protection?
It’s fairly straightforward. Audit protection services provide you with representation on both the state and federal levels should you receive a notice from the IRS. The IRS sends out a wide range of notices-from the most common CP2000, Notice of Proposed Adjustment, to Letter 525, Examination Report (and many others in between). No matter the notice type, each requires time to properly respond and ultimately resolve.
This is where audit protection services provide great peace of mind. This type of service can be thought of as an “insurance policy” of sorts. Typically,
for a fixed monthly fee you retain an accounting professional or firm to serve as your representative should you receive a notice.
The service ensures the paperwork and communications back and forth with the IRS are handled on your behalf. All you need to do is hand over the notice to your professional… and then breathe easy.
What’s the value?
Audit protection services provide many benefits, including:
Even with the simplest of notices, it can take hours to collect the needed paperwork, write responses and keep up with the back and forth of communicating with the IRS. Some issues can take weeks or even months to resolve, and who has time for that?
When you think about the potential hours required to resolve an IRS issue, it can really add up. Most often, you’ll save money by having an accounting professional manage the process for you.
Peace of mind
As mentioned above, great anxiety can come from receiving a notice from the IRS. Knowing you have an expert advocate in your corner to help resolve the issue relieves you of unneeded stress.
Now that you know the basics of what audit protection is and what it can do for you, take some time to think about whether this type of service would benefit you. It’s just nice to know that where the IRS is concerned, someone’s got your back! ■