The TurboTax MAX package includes audit defense, identity theft monitoring, restoration support, and loss insurance. If the IRS selects your return for an audit, a TurboTax representative will guide you through the process and help you respond to IRS requests. However, experiences with TurboTax’s audit support vary widely, as the service provides only limited audit representation. Each version offers varying levels of customer support, such as phone consultations with TurboTax experts and, in some versions, live chat support. However, even with these features, TurboTax’s assistance stops short of the personalized, in-depth service provided by licensed tax attorneys or CPAs.
Of course paying any money for the ability to pay money always makes me feel like an idiot. Intuit reserves the right to modify or terminate any offer at any time for any reason in its sole discretion. Unless otherwise stated, each offer is not available in combination with any other TurboTax offers. Certain discount offers may not be valid for mobile in-app purchases and may be available only for a limited period of time.
What Is TurboTax MAX?
With so many free and affordable tax software programs out there, it’s easier to find one that suits your needs. Opt to e-file your tax return to minimize errors and reduce the chances of an audit. The IRS reports that only 0.5 percent of e-returns contain errors, compared to 21% of paper returns.
- The company will also develop a plan of action and prepare all IRS documents for you.
- Statistically, fewer than 0.3% of taxpayers experience audits, reducing the necessity of audit defense for many.
- Look in your IRS letter or notice, and select the corresponding number in this article (for example, CP11, CP12, CP14, CP2000) for more information about what to do next.
- If you’re in that “unlikely” category, there might be better places to spend that $59.
While TurboTax can process standard business expenses, it lacks the depth needed for those with complex deductions, investments, and business income. For instance, TurboTax may not catch every possible deduction for those in unique industries or those with specific investment strategies. Dimov’s tax attorneys, on the other hand, are well-versed in industry-specific deductions, ensuring clients receive the full range of deductions available to them. Statistically, fewer than 0.3% of taxpayers experience audits, reducing the necessity of audit defense for many. Several other tax preparation software programs exist, including H&R Block, FreeTaxUSA, and TaxSlayer. While these programs may or may not be free as well, they offer varying coverage when it comes to tax audits.
Whether you’ve filed taxes yet or not, knowing about TurboTax’s Audit Defense can help you stay better informed for the future. Next time tax season comes around, you might find yourself in a different position with your newfound knowledge. Contrasting the benefits and the costs of TurboTax Audit Defense can help you determine if this service is worth the cost. No matter which plan you choose, TurboTax offers free phone support to help you through the process. However, the Premier plan is the only one that gives you access to live chat support. Research shows that those fears may be unfounded, especially given how many millionaires were audited back in 2022 (for 2021’s taxes).
What’s Included in TurboTax MAX?
That’s why it’s important to file your taxes accurately, whether you do it yourself or find a software or company that will guide you. A few minor errors could trigger an audit, but most of us are worried about the worst-case scenario happening to us. We’ll ask you simple questions about your tax situation and search over 350 tax deductions and credits to help you make sure you get all the tax breaks you deserve.
Staying on the right side of the IRS
Confidently handle an audit by the IRS with a representative who will represent you and communicate with the IRS on your behalf. Provide in a timely manner the information and documentation necessary to substantiate the various items of income and expense in question so that your Audit Representative(s) can prepare your defense. Provide your signature(s) on the required IRS or State Power of Attorney and return to the Audit Representative(s) in a timely manner.
- Your profession and financial situation will play a key role in your odds of being audited.
- You might argue that could be anyone who pays taxes, but the odds are that only one in every couple hundred people gets audited.
- Your name, address, and any other personal information will not be disclosed or sold to any persons or firms.
- If you filed your tax return with TurboTax, you already have the TurboTax Audit Support Guarantee.
- The following are terms of a legal agreement between you and TaxResources, Inc., dba TaxAudit (“TaxAudit”).
Choosing the Right Tax Representation for Your Needs
The coverage includes any audit that might occur during the time of your MAX membership (which lasts a year)—an audit representative will take care of all appointment scheduling, phone calls, and correspondence. The TurboTax Audit Support Guarantee also includes the option to connect with an experienced tax professional for free one-on-one audit guidance. However, we hope this review has calmed your fears about both audits and paying for TurboTax’s Audit Defense service. In some cases, Audit Defense might not be necessary or worth the additional cost, especially if you’re honest and certain your tax return is accurate. We’re no legal experts by any means but if you’re concerned about an audit, choosing a professional with whom you work well can be a better alternative than paying $60 for TurboTax’s Audit Defense. Licensed tax attorneys make a living from helping consumers like you and me so they have a bit more skin in the game when it comes to advising and defending clients.
TurboTax Audit Defense is part of the MAX services, which cost $60 on top of your tax preparation fees. It’s important to note that this service is a flat $60, whether you file a basic or a more complicated return. The good news is that most tax software and even paid tax preparation come with audit defense. It’s the company’s way of assuring you that if a number gets transposed or your taxes get audited, you’ve got a resource you can rely on. In the most common federal audits, taxpayers receive notices from the IRS asking about certain details of their returns and requesting further information or clarification. This is known as a “correspondence audit,” and even those are considered as rare as being struck by lightning.
More complicated returns require priced plans, especially if you have to append several additional forms, called “Schedules,” to your return. Instances where you might need to do this include getting married, having kids, buying a house, purchasing or earning income from a rental property, as well as foreign earned income. Our guide includes everything you need to know about TurboTax’s Audit Defense, including what it covers and how much it costs.
The IRS has some resources to search for and understand your notice, along with information to set up a payment plan. If you’re ever assessed an IRS or state penalty or interest due to a TurboTax calculation error, we’ll pay you the penalty and interest. In practice, this means communicating and negotiating with the IRS on your behalf. You still retain the right to have the final say, but TurboTax’s experts will do the leg work for you.
Ensuring Accuracy with Complex Returns
Unusual or unrealistic itemized deductions, either for individuals or small business owners, may raise a red flag for auditors. For example, claiming a charitable tax deduction for 40% of your total income could raise some eyebrows at the IRS. You’re more likely to be audited if you make more than $1 million a year or you’re in a very low income turbotax audit protection tax bracket. Both categories historically are fertile grounds for fraud and – because of the greater complexity – mistakes in data entry.
The percentage of people who actually are audited is extremely small, according to the Internal Revenue Service, but the number has risen slowly since 2008. If the IRS does decide to audit you, there is little you may do to stop it. You may, however, reduce the odds that you will be singled out for that extra attention in the first place.
You’ll have the aforementioned full representation by a licensed tax professional during all interactions with the IRS. To determine if you purchased Audit Defense, sign in to your TurboTax account, select the tax year under Your tax returns & documents, and select View order details. If you have PLUS, Max Benefits, or Premium Services listed, then you purchased Audit Defense. For those who want even more protection, TurboTax offers Audit Defense, which provides full representation in the event of an audit, for an additional fee. We hope we’ve also shown you that tax preparation doesn’t have to be a hassle.