Frequently Asked Questions
About Us, Our Services and IRS Audit Procedure
Listed below, are some of the most commonly asked questions.
What if I receive an AUDIT NOTICE or letter from the IRS or my state tax agency?
First, read the notice. Note to whom the notice is addressed.
If you are a member of one of our Audit Defense Memberships, you can report your notice to us on this website REPORT AN AUDIT, or call us at 800-410-2425. DO NOT call the IRS.
If you are not a member of one of our Audit Defense Memberships, our professional audit team can evaluate your notice to give you fast answers and a roadmap for action, even if you have already spoken to an IRS agent about the notice.
How fast should I contact you?
If you are a member of one of our Audit Defense Memberships, contact us within five (5) days of receiving the notice because the IRS takes procedural advantage of deadlines and will use your delay against you. If you wait too long, you will harm our ability to help you, and ultimately, you may harm the outcome of your audit whether or not you were ultimately right or wrong about the original audit issue.
AUDIT DEFENSE - GENERALLY
Which Audit Defense Membership Should I Buy?
We offer several Memberships that are designed to fit your individual needs. Generally, they differ in terms of how many tax returns are covered for how many years, and when you buy the membership.
Before You Receive an Audit Notice: In every case, you can only purchase a tax audit defense membership BEFORE you receive any kind of audit notice. The simplest membership covers one year's tax return for as long as that tax return is subject to audit, generally three (3) years for a federal tax return and four (4) years for a state income tax return from the date filed. The next step up covers all of your filed tax returns for all of the years that are still "open," that is, all years for which they are still subject to being audited. The top tier covers any of your filed tax returns for any "open" years. After You Receive an Audit (or Collection) Notice: Our Emergency Membership is for taxpayers who have already received an audit notice but are not currently covered by one of our other Memberships. Our Crisis Membership is for taxpayers who have already been assessed tax but do not have the money to pay it. Purchase of the Emergency or Crisis Membership entitles the taxpayer to a professional evaluation of their situation and delivery of a road map for resolving the issue. If a purchaser of an Emergency or Crisis Membership desires TAD to assist them with their audit issue, TAD will credit the price paid for either of these memberships to the professional fees required to have TAD professional represent the taxpayer to solve their tax problems. Compare our Audit Defense Memberships.
The audit's over. I've been assessed additional tax and it will cause me financial difficulties
to pay it. Can you still help?
Often we can still help and take over the case. We will need to see all notices and related tax returns. Purchase a Crisis Membership and we will evaluate your situation and give you a roadmap for action.
How much does Tax Audit Defense service cost?
If the tax return that is being audited is covered under an Audit Defense Membership that you purchased before you received an audit notice, there is nothing additional to pay. If you have already received an audit notice, you may purchase one of our Emergency Memberships and we will review your notice, the tax returns that are the subject of the notice and additional information to evaluate your situation and give you a roadmap to resolution. If you would like TAD to professionally represent you to resolve the matter, we will work up a fee quote. If you elect to engage us at that point, we will credit the price you paid for the Emergency Membership to the cost of our subsequent representation. If you choose not to retain us, there is no further obligation on your part.
Why shouldn't I rely completely on my accountant to help me with my income tax audit?
Practice before the Examination (audit) Division of the IRS is a very specialized, narrow practice that very few accountants do day in and day out. For our audit defense teams, it is ALL they do. Our audit defense teams see, and defend, more income tax audits in a month than your accountant is likely to see, or defend, in his or her professional career.
Why shouldn't I rely completely on my tax attorney to help me with my income tax audit?
Practice before the Examination Division of the IRS is a very specialized, narrow practice that very few (if any) tax attorneys do day in and day out. For our audit defense teams, it is ALL they do. Our audit defense teams see, and defend, more income tax audits in a month than your tax attorney is likely to see, or defend, in his or her professional career.
The IRS is calling. What do I do?
If you have an Audit Defense Membership, report your notice to us on this site. Then tell the IRS that we are representing you and that we will call them.
If you are not a member, we can still help! If you have received an audit notice, purchase an Emergency Membership and we will evaluate your situation and give you a roadmap for action.
If you have received a tax collection notice and paying the tax will cause you financial difficulties, purchase a Crisis Membership and we will evaluate your situation and give you a roadmap for action.
MEMBERSHIP QUESTIONS - GENERALLY
How can you provide professional income tax audit defense services with competent, experienced
professionals for such a low, fixed cost?
By creating cooperative Memberships that are sold to groups of taxpayers, the funds paid in by the group pays for the full cost of the professional defense of those Members who are audited. It is not "too good to be true." It is simply made possible by the intelligent use of economy of scale and efficient workflow systems focused on a highly specialized area for the benefit of all Members protected by one of our audit defense memberships.
For what years will you be offering tax audit defense memberships?
For all taxpayers who have not yet received an audit notice, we will be offering memberships covering all "open tax years" and indefinitely into the future.
What do you mean by "Open Tax Years"?
An "open tax year" relates to any tax year for which a taxpayer has filed a tax return that can still be questioned by federal or state income tax authorities. The IRS generally has 3 years (statute of limitations), from the date of filing, to audit your income tax return. However, once the audit door is open, if the IRS determines that you underreported your income by 25% or more they can go back 6 (six) years. If the IRS detects that fraud (Tax evasion) is involved they can go as far back as they like! The concept of the "open tax year" for state income tax agencies generally encompasses four years historically.
Do you review my tax return before you accept my membership?
Do you have a "satisfaction guarantee"?
Yes, you may cancel any of our memberships appropriate for purchase before you receive an audit notice for any reason within 30 days of purchase for a full refund.
Do you cover businesses?
Yes, if your business is private (not publicly-traded) and has gross receipts of less than $5 million and fewer than 10 owners (in any form). However, each tax-paying entity that you wish to cover must buy its own membership.
How long will you defend my tax return against audit?
For all "open tax years" on all covered memberships.
Can I buy the most basic membership (to cover one tax return) for prior years?
Can I buy a tax audit defense membership if I filed my tax return late?
If you have received an audit notice and are not yet a member, purchase an Emergency Membership and we will evaluate your situation and discuss your options so that you can follow our roadmap to resolution.
If you have received a tax collection notice from the IRS or state tax authority, and it will present financial difficulty to pay the assessed tax, purchase a Crisis Membership and we will evaluate your situation and discuss with you your own personalized roadmap for resolution.
If I filed an extension, may I buy the least expensive basic membership?
Yes, as long as your tax return is filed timely, including extensions, you can buy any of our memberships eligible for purchase BEFORE you have received an audit notice.
What happens if I amended my tax return after its deadline and THEN it gets audited?
If you first filed your tax return on time, including extensions, it is eligible for tax audit services whether or not you subsequently amended it.
What kind of tax returns can be covered by an audit defense membership?
Individual - Form 1040
C-Corporation - Form 1120
S-Corporation - Form 1120S
Partnership - Form 1065
Limited Liability Company (LLC) - Form 1065
Fiduciary - Form 1041
Does it make any difference what my "filing status" is regarding purchasing, and being covered by,
a tax audit defense membership?
No. It does not matter whether you file as any of the following: single, married filing a joint return, married filing a separate return, head of household, and qualifying widow(er) with dependent child. All filing statuses are protected under an Individual Membership.
How long have you been in business?
Thru our sister company, Tax Resolution Services, Co., the Nation's industry leader in tax problem resolution, we have been providing Audit Defense services since 1998.
What form of payment do you accept?
We accept American Express, MasterCard, Visa, and Discover credit cards. We can also make arrangements for payments by ACH, check or money order.
How do you keep my tax information private?
What Internet Browsers does your website support?
We support newer versions of Internet Explorer, Firefox, Safari, and Chrome. Other browsers may work on our website, but you may have trouble with the display and/or functionality of the site.