The IRS and State agencies send their communications via a standardized process called “tax notices.” They will have a name or alpha-numeric “number” as well as an identifying number. Some are simply informing you, others are technically classified as an audit. All require reading on a timely basis and taking any necessary actions in the timeframe mentioned. These documents are often called IRS Letters, but that nomenclature makes them sound more innoculous than they are. A tax notice handled in a timely manner is pretty harmless, but if allowed to fester can result in a full blown tax audit, unreasonably large penalties, and other financial headaches.
Most of our clients, whether on our outsource accounting packages or our more traditional tax return planning services, engage us for audit protection. We began offering this inexpensive addon a few years ago, allowing clients a piece of mind from worrying about basic inquiries from IRS CP2000 Tax Notices.
When clients with audit protection get a tax letter from the IRS, or a tax notice from their state agency, they simply photograph it with their phone and email it to us, and we take care of the inquiry. That piece of mind that your situation is handled quickly and efficiently, without worrying about what the bill will be, helps our clients focus on their business instead of tax compliance.
We love audit protection, because clients with audit protection send us their tax letters immediately, when we can resolve them. We often end up in major IRS Resolution cases when a client chooses to ignore a tax notice because they’ll “deal with it later” and the time to respond elapses, making fixing things a costly and expensive process.