Prepay for representation before the first notice
Tax audit insurance from Dimov Audit
You buy the plan before the first audit notice. If the IRS or a state contacts you about an audit, send us the first letter.
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What is audit defense
You prepay for representation before the tax agency through tax audit insurance on one return we prepare. We accept membership upon full payment. Buy it for this return; we do not cover an earlier return.
Under the plan terms, we cover a notice received within three years on the federal return and four on the state return. Under IRS Topic 305, the IRS generally has three years to assess tax after filing and six when omitted income exceeds 25 percent of the gross income shown. If the six-year period applies, check the plan terms before relying on it.
What the plan covers
Audit protection plan coverage
Under the plan terms, you get:
Audit communications.
Your representative handles letters and phone calls with the IRS or state on your behalf.An assigned representative.
Named people run the case and handle scheduling with the auditor.A defense strategy.
We agree the approach with you, then correspond or meet with the auditor for you.Appeals.
We represent you through appeals and pre-litigation review.Your consent on any outcome.
We settle nothing with the agency without your approval.Collection help.
We provide two hours on request if you owe tax after a covered audit.
What the plan does not cover
Audit defense exclusions
We publish more than a dozen limitations and exclusions in the plan terms, including:
Tax Court.
We represent you before the tax agency. We do not represent you in federal or state court.
Fraud.
We do not defend civil or criminal fraud, actual or alleged.
Return preparation.
We charge separately to prepare or amend a return.
Bookkeeping.
We charge separately to reconcile accounts or organize records, and we may bill staff time when you provide disorganized files.
Collection notices.
A standalone collection notice is not an audit, and a bill from an audit we did not defend is outside the plan.
Income tax only.
We do not defend audits involving sales, payroll, property, gross receipts, estate or gift taxes.
Criminal investigation.
We exclude anyone already under IRS Criminal Investigation. If CI enters an audit we are defending, we stop. Check the plan terms for what happens after the investigation ends.
The judgement
Is audit defense worth it
Buy it if you would rather fix the cost now than learn it after the work.
Compare the amount an agency could question with the cost of representation.
With tax audit defense billed by the hour, you learn the rate before the notice and the total after the work. You cannot predict the hours because the examiner may open more items or extend the exchange.
An examiner may ask for records supporting the income, credits and deductions on your return. With tax audit protection, you pay the membership fee in advance.
If a notice arrives
What to do when you receive an audit notice
- 01Step 1
Tell us within 15 days of the first notice.
Under the plan terms, we may charge more after that deadline. If you wait too long, we may handle the defense under a separate engagement.
- 02Step 2
Sign the power of attorney.
Form 2848 for the IRS, or the state equivalent, so your representative can act.
- 03Step 3
Hand over the substantiation.
Income and expense records for the items in question, uploaded and organized.
- 04Step 4
We take the case.
From the first response through to the outcome, with the strategy agreed with you first.
Already have a notice
Help with an audit already in progress
In our words, and a client's
What we say, and what a client said
George Dimov on difficult tax questions
“If you have a tax question, whatever the least appealing answer would be, that's probably the right answer.”
George Dimov, CPA
On arriving with a notice a previous preparer could not answer
“I was in a pickle with IRS telling me that I owe them outrageous amount of money. My accountant made a mistake with my RSUs, that is why I was in trouble. She did not know how to handle it even when presented with IRS letter.”
Aysel Ozgur
Google review
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Use this as general information, not advice for your circumstances. Read the plan terms to confirm your coverage, and speak to a CPA before you act.
Ready when you are
Ask us about tax audit insurance with your return
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
24 Mercer St, 2nd Floor, Suite 214
New York, NY 10013
United States
Reviewed by George Dimov, CPA. Dimov Audit defends IRS and state income tax audits for individuals and businesses across all 50 states. 20+ years in accounting and consulting. Profile
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