If you plan to get an expert to help with your tax or audit obligations, knowing the range of financial experts’ services is advisable. The average taxpayer may consider audit defense and audit support as interchangeable terms for the same financial service. However, in the complex world of taxes and audits, these two terms represent very different services. If you face any serious challenges with your tax obligations, book an audit defense consultation session with a seasoned expert and go now before it’s too late. A timely response is critical to solving tax issues before they mutate into costly fines.
It is vital to know the difference between audit support and defense to understand what level of support you can expect from your financial expert.
Audit Support Is A Complementary Feature Of DIY Tax Programs Where The Taxpayer Is Offered Advice And Expected To Do All The Work
A larger percentage of American taxpayers do not have complex financial needs. Therefore the majority of them are adequately covered by purchasing DIY tax software. When you buy DIY software for preparing your taxes online or at a store, the program usually comes with free customer care and support. You probably wonder how audit support will help you if you receive a letter from the tax agency.
Audit support features access to a customer care hotline that you must notify immediately after receiving a tax agency letter. An audit support associate will review the letter and walk you through the process for a proper response. They will instruct on how to respond, the documents you require to submit, how much time you have to react and whether you need to follow up on your letter by calling an examiner at the tax agency directly. The audit support associate will expect you to follow their advice and be proactive in tracking your documents and dealing with the tax agency.
Audit Defence Is An Exclusive Financial Service Where A Financial Expert Offers Advice And Does All The Work
When a taxpayer with audit defense receives a letter from the tax agency, they promptly notify their audit tax representative, who will take over all further communication with the agency. The audit representative will require some information from you before they can write, call and follow up with the agency on your behalf. All you need to do is wait, and the audit representative will notify you of any developments that may require your participation. Otherwise, your audit representative informs you that your audit has been successfully concluded.
Audit Support Is Sufficient For Highly Organized Individuals Possessing Modest Financial Know-How
Audit support is a hands-off approach that assumes you tidily file all your annual tax returns and the supporting documents. If you have trouble locating the documents or writing back to the tax agency as audit support recommends, then you may require audit defense in response to the letter from your tax agency. These individuals may not be required to pay the nominal fee that an audit representative would charge for audit defense. This is because they have all their ducks in a row and will easily follow the instructions offered by audit support.
Audit Defence Is Best For Businesses And Individuals With Complex Tax And Audit Needs
Businesses and individuals with complex financial dealings can’t benefit from audit support. Such situations usually call for an in-house accountant or financial advisor who can liaise with an audit defense representative.
The audit representative will explain what the tax agency is looking for and help you locate any necessary documents to clarify the complex transactions. An audit defense is a proactive way of preventing small issues from turning into complicated matters that could cost you plenty in fines.
How To Choose Between Audit Support And Audit Defence
The best choice for you is entirely dependent on the urgency and uniqueness of your tax issue. If you have just received your first letter, you can try audit support and follow their instructions. If you cannot track the documents mentioned or write the response letter as instructed, you should consider consulting an audit representative.
The amount you pay an expert will be minimal compared to the fines you risk attracting by ignoring or poorly handling your tax audit.
If your tax audit has been ongoing without much success on your end, then you need to consult an audit representative immediately.