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Author: stocks2grow Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121351  
Subject: Audit Defense Date: 3/29/2008 6:05 PM
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I noticed TurboTax (which I haven't used in a few years) now has something you can pay a small fee for, called Audit Defense. Anyone have any experience with this? It is supposed to be a complete package in case you get audited; they represent you, do all the paperwork, and talk to the IRS for you I think. I was wondering if I sign up for it, am I giving any rights away, etc. Don't expect an audit, but one of the selling points seems to be paying a small amount now, sort of as insurance I guess, versus what could be thousands of dollars in representation fees. Sounds pretty good, but it's all sort of new to me.

Mike
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99884 of 121351
Subject: Re: Audit Defense Date: 3/29/2008 6:34 PM
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I noticed TurboTax (which I haven't used in a few years) now has something you can pay a small fee for, called Audit Defense. Anyone have any experience with this?

Not here. As with any such product, read the fine print:

http://turbotax.intuit.com/corp/auditdefense.jhtml

It looks pretty straightforward to me. It sounds like any other insurance situation. If you win you lose, and if you lose you win. To me it boils down to whether you anticipate you might get audited and, if you do, how difficult it might be to resolve.

The vast majority of inquiries have to do with the reconciliation of information documents (1099's, W-2's etc.). If you don't have any esoteric income items (any Schedule other than B) and don't itemize deductions, I don't see the point of worrying about an audit. If there is a problem it should be easily handled without representation. Even with itemized deductions, if everything was cash and your records are in good order, I don't see a big potential problem should IRS inquire.

Phil

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Author: stocks2grow Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99905 of 121351
Subject: Re: Audit Defense Date: 3/31/2008 8:30 AM
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Thanks Phil, that makes good sense.

Mike

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