You have hired the best certified public accountant in town to file your tax return, and once you receive that large tax refund, you feel on top of the world. All of a sudden, your world comes crashing down when you open the mailbox and see the letters “IRS” on an envelope. Now, you feel nervous. However, you don’t feel completely helpless. Why? Because you purchased a type of tax audit defense service known as pre-paid audit representation.
Some companies provide pre-paid audit representation services to taxpayers who are filing their tax returns. This service offers you the peace of mind of knowing that if you are ever faced with a tax audit you will have someone there to defend you. For a small fee, you can receive representation from the company if your return is chosen for an IRS audit.
As with other types of prepaid coverage, you may end up paying for audit representation and never have to use it if you are never audited. However, it is usually better to have the service and not need it than it is to need the service and not have it, as tax audit reviews show.
The benefit of this service is that if you face an audit, you don’t have to go through this potentially intimidating audit process alone, according to audit defense reviews. In addition, with pre-paid audit representation, you can receive full audit representation without having to pay extra money for it. For instance, your representative can help you if you cannot find specific information that the IRS is looking for, as well as guide you through other dicey situations that may crop up during the audit.
Because audits can be complicated, representing yourself generally isn’t a good idea. This is true even if there’s no doubt in your mind that you did nothing wrong, or if you’re not sure why the IRS is auditing you. Rather, enlisting the help of a representative can help you to achieve the most personally favorable outcome possible in your situation.