The number of IRS notices increases each and every year. In 2012 alone there were 502,180 field audits and 1,155,518 correspondence audits.
Bailey, Carr CPAs, P.C., with these figures in mind, feels that a prepaid audit representation program is a sound economic decision. Our staff of experienced CPAs will handle your issue.
The time involved in an audit can take several hours; some extensive audits can range between 20-40 hours to complete. This can cost you potentially thousands of dollars. It can also take significant quality time away from your family and/or business.
By hiring our firm under a fixed-rate prepaid plan you can save extensively and also know that an experienced professional will be handling your audit.
This service is offered to our for-profit businesses and individuals. The fee structure is as follows:
Frequently Asked Questions regarding the Prepaid Tax Audit Program
1. When does the program start?
When we receive the signature form and payment, your account will be activated for the year specified for any notices or audits received after the receipt of payment. For example, to participate in the plan for the 2013 tax year, we must receive the signature form and payment prior to you receiving the notice of audit. The certificate received from us will indicate the tax year covered and the effective date. The effective date will be the date your check is received by us.
2. What are the services that will be covered if you are an individual?
If you pay the fee for an individual, the plan covers services related to any correspondence that you receive - federal and a state specified - that relate to your personal income taxes for the year specified on the certificate. It will also cover representation if you are reviewed by either federal or the specified state agencies relating to your personal income taxes. Please note that if you have a Schedule C or Schedule D, you will need to pay the Business Fee for the services relating to any correspondences or audit notices. The fee does not cover any services relating to sales tax, payroll tax, excise tax, workers compensation, or the Department of Labor. It covers only income or franchise taxes.
3. What are the services that will be covered if you are a business: S Corporation, C Corporation, LLC and Partnership?
If you pay the fee for a business, the plan covers services related to any correspondence that you receive - federal and the specified state - that relate to your business income taxes. It will also cover representation if you are audited by either federal or the specified state agencies relating to your business income taxes. The fee does not cover any services relating to sales tax, payroll tax, excise tax, workers compensation or the Department of Labor. It will only cover the year stated on the certificate.
4. How long is the program?
It will cover the specified year only for as long as the statute of limitations is open. Excluded is any service related to work done if and when the case goes to the court or appeals level.
5. What costs does the plan not cover for income taxes?
The program does not cover court or appeal level services. The program also excludes any criminal or fraud cases.
6. Who will be handling the correspondences or audit?
All correspondence and audit representation will be handled by a trained and experienced CPA.
7. Can an outcome be guaranteed?
No. A guaranteed outcome cannot be given. We can guarantee that a highly experienced CPA will work on your behalf
8. Does the program cover services relating to tax returns our firm did not prepare?
No. This program is only available for tax returns prepared by our firm. If you would like our services relating to tax returns prepared by others, our trained and experienced professionals will be available at our standard hourly rate.
9. Can I get coverage for multiple states?
The basic cost covers the federal and one specified state. Additional states can be covered for the payment of $100 per state.
10. What happens if the Audit Program does not get purchased and there are notices and/or audits?
The firm will assist you and base all fees at our standard hourly rates.
Please contact us to participate in this program, or if you have additional questions.