Anyone offer "Audit Insurance" to your clients ?

[Twin Turbo Z]

We use Proseries and they push "Protection Plus" audit insurance. We would do the "firm" option which is $10 a pop vs the $49.95 pay per return rate and pass the cost on to our clients. Just curious as to if others use this type of service. And any issues with it. As of now we just handle any CP2000 or similar request ourselves. Which is just a handful every year. And its always something simple to fix. So its been kind of hard to justify the $49.95 per return cost. Now at $10 a return if you do "firm" coverage is not so bad. Covers ID Theft too.

[TaxGuyBill]

From what I understand, the ProSeries plan is the same as they offer to TurboTax users. I haven't confirmed that, but that is I have stuck in my head.

And I've heard repeatedly that the TurboTax audit protection is pretty much useless. No personal experience with it, but I've seem multiple posts that say the audit protection does not do much (most just deals with things like CP2000s, not a full audit).

Based on that, I would never offer it to clients.

[Twin Turbo Z]

Thats the position we have taken in the past. The price is not justified. I'll give them a call and pick their brains about what is covered. Their website is kind of lacking in details. But we will probably pass. Thanks Bill

[ATSMAN]

I have offered it to a select group of clients as an added benefit because they seem to be more likely to get audited.

Protection Plus, one of the most comprehensive audit assistance companies available to you. Protection Plus excels in protecting tax preparers and their clients in five critical areas:

• $2,500 for Tax Liability. The taxpayer can rest easy knowing that if a legitimate preparer error has been made on their tax return, the liability to the IRS for taxes, penalties, and interest will be assumed by Protection Plus up to the first $2,500.
• Relief of Audit Headaches. Protection Plus Audit Assistance will work aggressively with clients to resolve their audit issues with the IRS, helping them receive the refund they are due. After just one phone call to the Protection Plus Claims Division, the client will know that they truly have a team of dedicated professionals ready to assist them. Protection Plus relieves tax professionals from the arduous and time-consuming task of analyzing IRS correspondence and clients’ records and documents. All claims are handled in a prompt, courteous, and professional manner.
• Unique Coverage. Protection Plus Audit Assistance reaches out in ways other audit assistance plans do not. When credits, such as Earned Income Credit, Child Tax Credit, and Education Credit are denied, Protection Plus will assist clients even if the return is yet unfunded by the IRS. In addition, the Protection Plus Audit Assistance plan includes Schedule A and Schedule C at no additional charge.
• Tax Debt Relief. The Protection Plus team will work with the taxpayer for a resolution to their debt. Tax Debt Relief includes, but is not limited to:
  • Guaranteed Installment Agreements
  • Offer in Compromise
  • Tax Penalty Abatement
  • Streamline Installment Agreements
  • Tax Liens
  • Wage Garnishment Relief
  • Innocent Spouse Relief

[TAXNJ]

I have offered it to a select group of clients as an added benefit because they seem to be more likely to get audited.

Protection Plus, one of the most comprehensive audit assistance companies available to you. Protection Plus excels in protecting tax preparers and their clients in five critical areas:

• $2,500 for Tax Liability. .........
• Relief of Audit Headaches. ........
• Unique Coverage. .....
• Tax Debt Relief. The Protection Plus team will work with the taxpayer for a resolution to their debt. Tax Debt Relief includes, but is not limited to:
  • Guaranteed Installment Agreements
  • Offer in Compromise
  • Tax Penalty Abatement
  • Streamline Installment Agreements
  • Tax Liens
  • Wage Garnishment Relief
  • Innocent Spouse Relief

Sounds more than the other reply post stating “(most just deals with things like CP2000s, not a full audit).”

Is this the same “Protection Plus” offering mentioned in the other reply post?

[ATSMAN]

Sounds more than the other reply post stating “(most just deals with things like CP2000s, not a full audit).”

Is this the same “Protection Plus” offering mentioned in the other reply post?

This is their website https://taxprotectionplus.com/ but the actual pricing is based on their agreement with the software publisher. They have a list of tax software that they have partnered.

[Rapid Robert]

H&R Block still offers their Peace of Mind product, which from a quick check at their web site includes payment of up to $5K of tax liability that the H&R preparer omitted by mistake (which of course will be taxable income in the year paid).. Also I think there is something like up to ten hours of time from an EA to represent the taxpayer at an audit. I imagine this is by far the largest offering by the number sold of any such plan.