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1. I file an
honest return. Why would the IRS audit me?
Returns are selected for audit for a variety of reasons. Additionally,
a certain percentage of returns are selected for audit on a purely
random basis. It is from the information gathered in these audits
that the computer-generated norm is updated. This norm is used
to grade all tax returns in a given year. Returns containing certain
"red-flag" deductions (write-offs for real estate, business,
travel & entertainment expenses, etc.) have a good chance
of being selected. Obviously there are other reasons for returns
being selected for audit as well. The fact that you file an honest
return has little bearing on whether or not you will be audited.
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2. But what if I have never been
audited before?
Don't kid yourself! With its recently updated
computers, the likelihood of being audited by the IRS is higher
today than ever before. Tax audits are expensive. They can consume
a lot of your time, and that of your CPA who will most likely
charge you for the service in addition to any assessments levied
against you (assessments are currently averaging $5,000 per person).
The IRS is able to audit and/or computer analyze every tax return
every other year.
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3. Even if I am audited, why
should I worry?
Most people do file an honest return. However,
IRS auditors are trained to collect revenue that they believe
is owed to the government; and in their eyes you are guilty
until proven innocent.
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4. What if Tax Audit Defense
Plan makes a settlement I don't like?
No settlement is ever made without your approval.
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5. How far will Tax Audit Defense Plan
take my case?
All the way from initial audit through the IRS
Appellate division.
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6. Isn't it the job of my tax
preparer and/or accountant to represent me in an audit?
The IRS's win record is over 80% and those include
returns defended by tax preparers and accountants! There are four
major reasons that can be cited for using a professional NOT involved
in the preparation of your return for the defense of your audit.
Even licensed tax preparers (accountants) generally
spend very little time actually defending returns. And, they may
not be expert in the tax code for the specific area involved in
your audit. Most importantly they are probably not familiar with
the inner-workings of the IRS.
Many tax preparers (accountants) are not licensed
to represent you before the IRS. They can accompany you, but cannot
go nor argue points of law on your behalf.
The tax preparer act of 1976 and subsequent legislation
makes the tax preparer (accountant) legally liable, along with
you, for the content of your return. The maximum fines faced by
the preparer have grown to $100,000 and/or prison for individual
tax returns. Now, many professional tax associations recommend
that someone other than your preparer (accountant) represent you
during an audit.
In addition, in the case of an extended audit,
you will almost certainly incur additional costs even if your
tax preparer (accountant) can and will accompany you on your initial
visit to the IRS at no charge. It is not economically feasible
for him/her to accompany counsel you through an extended audit
without additional fees. Your preparer (accountant) has only his/her
time to sell and deserves a fee for the use of that time.
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7. Is the IRS opposed to Tax Audit
Defense Plan?
No, to the contrary, efficient representation
makes for quicker resolution of audits, which helps reduce their
caseloads.
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8. What if I wind up owing the IRS
money? Will Tax Audit Defense Plan pay it for me?
No, Tax Audit Defense Plan never pays your tax,
interest, or penalties. But because of their familiarity with
collection procedures, Tax Audit Defense Plan can usually negotiate
a comfortable payment arrangement. This could mean the difference
between easy monthly payments and garnishment of wages or liens
on property.
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9. What if I hire an attorney when
I need representation?
Many IRS auditors associate the appearance of
an attorney with an increased likelihood of guilt. This could
result in a more intense audit. And even though most attorneys
have not had a lot of experience practicing before the IRS, their
fees are still likely to be high.
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10. Why can Tax Audit Defense
Plan represent me better than anyone else?
Tax Audit Defense Plan is comprised of a network
of former IRS employees including auditors, agents, investigators,
instructors, attorneys and other ranking officials. Among these
former IRS representatives are specialists in each of the 21 specific
audit areas of the IRS. They have been trained in the IRS's own
special tax schools. These specialists have an expert understanding
of the tax code as well as the inner-workings of the IRS. These
are the specialists that will represent you.
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11. What process do I follow when I
receive my notice of audit?
You contact Tax Audit Defense Plan, not the
IRS, and inform us that your tax return(s) has been selected for
audit. Tax Audit Defense Plan will send you a limited power of
attorney form for you to sign. This gives us the authority to
negotiate for you. Tax Audit Defense Plan will notify the IRS
of the fact that they are representing you in the audit. You'll
have no need for personal communication with the IRS.
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12. Can you tell me who will
represent me if I am notified of any audit?
Tax Audit Defense Plan does not know in advance
who will handle your audit. That determination is made according
to the specifics of your case.
In some instances, the best representative(s)
for your case might not be available in your area. In most cases,
more than one representative is assigned to an audit. This team
approach works well, and if your tax preparer is also included,
we pay him/her their regular hourly rate to assist us to win on
your behalf.
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13. Will I have to appear at the audit
with my representative?
No, not only are Tax Audit Defense Plan representatives
licensed to go in your place, we do not want you to appear under
any circumstances, because either you or your tax preparer (accountant)
can open up affirmative issues and cause your audit to extend
beyond the issue originally initiated by the IRS agent.
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14. If I am already under audit will
Tax Audit Defense Plan represent me?
Yes, but only on a custom audit basis. This
requires a minimum of $950 retainer and an hourly fee thereafter.
But all of the other benefits of Tax Audit Defense Plan - professional
representation, team effort, and win record - will be afforded
to you.
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15. If I am under audit for one year
can I still qualify for the program for other years?
Yes - any year for which you have not been contacted
for audit can be protected on the prepaid program.
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16. I own a small corporation. Can
Tax Audit Defense Plan protect it as well?
Yes, Tax Audit Defense Plan offers prepaid tax
audit specialists for corporations, partnerships, trusts, and
estates.
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17. Who pays for the attorney's
fees, filing fees, etc?
Tax Audit Defense Plan pays all these fees if
the service is purchased on a prepaid basis.
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18. Will Certified Tax Audit Specialists
prepare my taxes?
No, Certified Tax Audit Specialists does not
prepare taxes or give tax advice. In this age of specialists,
Tax Audit Defense Plan's only business is defending tax returns
under audit. Tax Audit Defense Plan will, however, refer you to
a competent tax preparer in your geographical area.
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19. I have used the same accountant
for years. If I use Tax Audit Defense Plan, does that mean I have
to replace my accountant?
No, you still need somebody to do your normal
accounting work. Tax Audit Defense Plan defends you the taxpayer
and your tax return prepared by the accountant. It is important
to understand that your CPA or tax preparer is a specialist in
preparing books and records, in giving tax advice, and preparing
your tax return, but he/she is not
usually a specialist on IRS tax audit procedure.
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20. What assurance do I have that Tax
Audit Defense Plan will exist to fulfill these future audit obligations
to me?
A portion of every enrollment fee is set-aside
in an audit reserve to insure representation for all customers
for the entire life of the contract.
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21. How can Tax Audit Defense Plan
do all this for such a low fee?
Simple, those who not audited in effect pay
for those who are. This principle works for all types of prepaid
programs. People working together in groups always save money
in the long run.
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22. Can I write off the cost of Certified
Tax Audit Specialists service?
Yes,
you can write-off the cost to Certified Tax Audit Specialists
service subject to the laws pertaining to all professional tax
services you use. Consult your tax preparer (accountant).
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23. What particular areas of expertise
do you specialize in?
Tax Audit Defense Plan has specialists in each
of the special audit categories of the IRS.
• Individuals
• Partnerships
• Corporations
• Employee Plans
• Tip Income
• Criminal Litigation
• FMC And DISC Corporations
• Preparer Projects
• Collections
• Exempt Organizations
• Payroll
• Tax Shelters
• International Corporations
• 100% Penalty Assessments
• Research
• Taxpayer Service
• Welfare Benefit Trusts
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Some of our Certified Tax Audit Specialists helped write the existing
IRS manuals that explain audit procedures for processing to the
IRS agents themselves. This is one of the unique advantages of
the Tax Audit Plan -- it provides the client with a representative,
in some cases a team of representatives, who are proficient in
the specific areas of your audit.
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