Audit Insurance

[joanmcq]

No, actually we do the work in house. And don't prepare taxes, so you don't lose that. How do you think I get all this experience on CP2000s?!!!! Hundreds a year! BTW, I am not an owner, just a working schlub, so I'm not promoting, just edumacatin'.

[erchess]

Thank You

You are right they are not the same thing especially since they would most likely refer my clients to someone other than me for audit assistance and since they fail to meet the goal of ponying up money in the event the client has to pay. However, I'm very interested to know that these people exist.

[joanmcq]

TaxResources, Inc. offers audit protection, but will not pay interest/penalties etc. Its described as prepaid audit defense, ie, client buys it for 2007 & if at any point they get audited for 2007, TRI defends the return (well, if it can be defended, that is!). Not quite the same thing, since it covers the return, not the preparer.

[Chief]

Audit Insurance

My previous software had this insurance for a cost and my new software has it for a cost. I offer it but have had no clients to take it. I believe it's another way of getting money from the client like extended warranties on all kinds of consumer products. A few years ago I purchased a color TV and the salesman wrote on the ticket customer flatly refuses the extended warranty. He said the TV would require maintenance and repair. I used it for nearly 20 years without one repair. I refuse to become part of this grand scheme to defraud the public.

[MLINDER42]

Audit Insurance

The problem was that these companies paid out very few claims.If the client had any fault in the problem they did not pay.For example forgetting some interest or dividend you had to prove that you did not enter it not that the client never gave it to you.When I worked for that company they paid out a lot of times because they knew that some preparers made mistakes.

[erchess]

Do any of you offer to your clients the opportunity to buy a special guarantee that if they are audited you won't charge them for their defense and if they have to pay any additional tax penalty and interest, these will be paid for them up to some reasonable limit such as $3K or $5K? Does anyone know of anyone who offers such a plan to be sold by tax professionals? The main reason I went with TRX last season was to use Intellitax and get a form of this insurance called Safetynet and then during the season TRX canceled the product. I raised such a fuss that they gave it back just for me.

Of course I have since learned of proposed regulations that would have banned this insurance as well as Refund Anticipation Loans and another product. Does anyone know what became of that?