Why would I need audit defense?
You may need audit defense if you want a tax professional to deal with a tax notice, prepare the response, and speak with the agency for you. It is not required for every filer, but it can be useful when you do not want to manage letters, deadlines and document requests on your own. TurboTax describes Audit Defense as a paid 3rd-party add-on from TaxAudit, and the IRS explains that an audit notice indicates what records to send & when to send them.
Why would you need audit defense?
The main reason is representation. Under Intuit’s membership terms, the assigned representative manages scheduling and calls as well as correspondence from the first notice through completion — as long as the matter is covered and you report it on time. That can take real pressure off when a notice arrives.
What problems does audit defense solve?
It can help when you do not want to:
- Read & reply to agency letters on your own
- Keep track of due dates & fill out extra forms
- Pull together proof for income or deduction items or credits
- Talk directly to the IRS or the state tax department
Is audit defense the same as free audit support?
No — free audit support generally just gives the information. For instance, TurboTax’s Audit Support Guarantee lets you ask questions one-on-one — but the support team will not actually represent you before the IRS or state agencies. Audit Defense proceeds a step further: a representative actually speaks to the taxing agency for you to resolve covered issues.
When does paying for audit defense make more sense?
It is generally optimal if the tax return involves a lot of documentation — or if you simply want a professional to take over the entire response process.
It should be noted that audit defense does not prevent audits — nor does it fix missing records. Intuit’s terms require you to sign a power of attorney & send in the documents on time. The service also does not cover tax court representation, fraud defense, amending the returns, or cleaning up the bookkeeping.
Dimov Audit may also assist you
If you need a second set of professional eyes before replying to a tax notice, Dimov Audit is ready to review the situation and talk through the next action. Reach out to us for assistance in organizing your records and custom-building a response strategy.
