If you’re unlikely to be audited without filing your taxes with software, doing so through a service like TurboTax will likely decrease those chances even more. Getting audited is scary, so it’s important to know what kind of support you’re getting from your tax software. First, be sure you know the difference between “support” https://turbo-tax.org/what-is-the-turbotax-audit-defense-phone-number/ and “defense.” With most providers, audit support (or “assistance”) typically means guidance about what to expect and how to prepare — that’s it. Audit defense, on the other hand, gets you full representation before the IRS from a tax professional. If you don’t, there is a high chance the IRS will audit your return.

As you make your way through the return, a banner running along the side keeps track of where you stand in the process and flags areas you still need to complete. You can also click into it to get a detailed breakdown of what factors are currently affecting your refund. TurboTax has a lot going for it, but price isn’t one of them. The list price of its software routinely is on the high end of the spectrum, especially when adding the cost of a state return.

What are the pros and cons of getting TurboTax’s Audit Defense?

For example, an advantage of using TurboTax Audit Defense is that you have a piece of mind that you have some form of assistance in case the IRS audits your return. TurboTax can help you negotiate and correspond with documents sent from the IRS. As mentioned earlier, those who use TurboTax typically only file their 1099s, W2s, and claim the standard tax deductions. As long as you report your information accurately, you are less likely to receive an audit letter in the mail. Even if the IRS audits you, it will most likely be something as small as a math error or something minor.

You must add MAX to your TurboTax package before you finish your return, however. Our pros have an average of 10 years’ experience handling even the most unique tax situations. Most importantly, when you purchase H&R Block Peace of Mind®, you’ll have protection for the life of your return. You also have the option of paying for the software out of your refund.

Additional taxes reimbursement

You’d have to renew your membership again in 2020 if you wanted the same protection for that year’s returns. The statute of limitations for the IRS to audit a tax return is typically three years; if you had audit defense for your 2021 tax return and you’re audited in 2023, you will be covered. Let your tax pro know that you want Peace of Mind® and pay the additional charge when you pay for your tax preparation.

Our aim is to provide an independent assessment of available software to help arm you with information to make sound, informed judgements on which ones will best meet your needs. One of TurboTax’s most notable tax help options is TurboTax Live Assisted. From mid-January through the tax-filing deadline, you can access the tax pro feature seven days a week, from 5 a.m. Questions are phrased simply, and tax jargon is kept at a minimum.

Will TurboTax help with an audit?

Yes, Cash App Taxes is 100% free for state and federal returns. Even if you‘re taking deductions or credits, it won‘t cost you a penny to file your taxes. https://turbo-tax.org/ You can think of audit defense as insurance for your tax return. For example, car insurance can protect you in case you’re ever in an accident.

• Whether you need Professional Representation depends upon several factors.
• Audit Defense, on the other hand, is a perk from paying for TurboTax’s MAX package.
• Let’s be honest; filing your taxes can become complicated and confusing fast unless you have a straightforward tax return.
• Some filing services guarantee that your taxes will be 100% accurate, and we do too.¹ We make sure everything looks good the whole way through to help you max out your refund.

In that sense, it’s a little bit like identity theft insurance. ID theft insurance doesn’t prevent you from having your identity stolen, but it can make the cleanup process a bit easier. Before you buy an insurance product like audit protection insurance, it’s important to know what you’re buying.

And if you actually are audited, the outcome probably isn’t going to be in your favor. And if you’re missing a receipt, copious records may provide a narrative to back up your position, Dennis said. Andrew is the Content Director for SuperMoney, a Certified Financial Planner®, and a Certified Personal Finance Counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand.