Affordable Protection from Audit Related Expenses
When you get your taxes prepared by Ken-Mar Tax you have the benefit of using an enrolled agent, one of only three professionals, along with an attorney and a certified public accountant (CPA), that can legally represent you to the IRS. Part of this benefit is that you have the option of signing up for peace of mind with our Audit Protection and Tax Fraud Assistance Plan.
Federal IRS Audits
Tax audits and correspondence with Federal tax authorities can be an expensive inconvenience as each year the IRS selects certain tax returns to examine. If your tax return or your company’s tax return is selected, you could incur considerable expense – even if the IRS audit reveals everything was filed correctly and there is no need to make any changes.
Expenses of an IRS, State & Local Tax Audits
Most tax payers faced with an IRS audit make the wise choice to forego handling the auditor face-to-face, a situation that can lead the IRS to question more of the tax returns than the ones being audited. For example, saying something like, “I have taken that deduction before and it was fine,” could lead the investigator to look into more returns, not just the one that has been flagged. Working with a CPA, tax attorney or Enrolled Agent (EA) will eliminate the need to deal directly with the IRS yourself, but typically cost at least $1,000 in fees for their time.
In addition to the annual IRS tax audits there has also been an increase in State and Local tax audits with many localities issuing Administrative Subpoenas to tax payers.
Preparing for IRS, State of Ohio or Local Tax Audits
Thorough planning and preparation for an IRS, State of Ohio or local tax audit is typically the key to a successful result. Once you receive an audit notification or subpoena from the IRS, State of Ohio or local tax collector it is important to meet with your tax professional to prepare a plan. When you participate in our Audit Protection Program we work with you to complete pre-audit preparation including:
- Reviewing the IRS Audit letter with a thorough explanation, as well as State of Ohio or Local Tax Notices if applicable.
- Researching the applicable IRS, State or Local Tax Audit letter.
- Gathering and organizing receipts, statements and applicable documentation.
- Reviewing prior tax returns that could affect the tax audit.
IRS Tax Audit Representation
There are only three professionals that can legally represent you when dealing with the IRS – an enrolled agent (EA), a certified public accountant (CPA) and an attorney. The Internal Revenue Code and related regulations are complex, occasionally difficult to apply, and even more difficult to explain how and why it was applied in a particular manner when filing the tax return being audited. When you participate in the Audit Protection Plan you can choose to be accompanied to the audit by our enrolled agent, or if you prefer to not attend, Ken Weinberg, or another Ken-Mar Tax enrolled agent will appear on your behalf using a signed Power of Attorney.
Tax Audit Protection Plan
When you choose to purchase the Tax Audit Protection Plan for a nominal fee, you can avoid the extra costs of paying for audit representation.
If you are audited by the IRS, State of Ohio or local taxing authorities, we will meet with the taxing authorities on your behalf to negotiate a settlement for you. The fee covers all costs up to the Appeals level, including up to 15 hours of correspondence with the auditing party – either the IRS, State of Ohio or locality.
Easy Audit Representation
And it’s easy to do. When you complete your tax return with Ken Weinberg or another Ken-Mar Tax professional, your tax expert will ask if you would like to purchase the Audit Protection Plan. After you pay the one time fee, you will be given a Certificate to document your purchase. Keep this certificate with your tax return documents and in the case of an audit show us the certificate and services will be rendered – up to 15 hours of audit planning, preparation and representation. In the case of an audit present the audit notification and your Certificate for the year in question to Ken-Mar Tax within 30 days.