Her professional background spans both commercial and residential real estate, enriching her writing with firsthand industry insights. She is passionate about making complex real estate and financial topics accessible for all readers. Dedicated to transparency and clarity, her ultimate goal is to help her audience make informed and confident decisions in their financial pursuits. The online version offers the flexibility of accessing your tax information from any internet-connected device, with data securely stored in the cloud. You can switch back and forth between TurboTax online and the app seamlessly. Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
What to Look For in a Tax Attorney
But you may not know what the IRS means about something, or may not be sure of what to hand in. The IRS needs to respect the rights to due process for taxpayers, including privacy and confidentiality. An accountant may feel free to hand over whatever they want on your file to the IRS to save themselves. Your profession and financial situation will play a key role in your odds of being audited. If you’re working at a hospital or within a practice that someone else owns and are earning a standard salary, spending that extra $59 might not be worth it. As a physician, a couple of those audit red flags might apply to you—particularly the sole proprietorship and being a high earner.
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. TurboTax makes it easy to file your federal and state taxes online without having to visit a costly tax preparation agent. With TurboTax’s Audit Defense, you can also pay an additional fee to gain some protection should you get audited. 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.
Based on recent data, the odds of you getting audited are low, no matter if you use TurboTax. In 2020, just 0.3% of individual tax returns were audited, though those who earn seven figures per year (or who pay $0 in tax) are about six times more likely to face an audit. If you’re unlikely to be audited without filing your taxes with software, doing so through a service like TurboTax will likely decrease those chances even more.
- Should you be audited, TurboTax will assign a representative to assist with the audit process and help manage communication with the IRS.
- Audit defense offers peace of mind, protecting your rights while fighting for a fair outcome.
- Contact Dimov today for a consultation and ensure your tax filings are in the best hands.
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Contrasting the benefits and the costs of TurboTax Audit Defense can help you determine if this service is worth the cost. Research shows that those fears may be unfounded, especially given how many millionaires were audited back in 2022 (for 2021’s taxes). Contact Dimov today for a consultation and ensure your tax filings are in the best hands.
Should You Consider Tax Audit Software?
- However, if you’re currently earning a more modest income, if you aren’t running your own practice, and if your deductions are relatively standard, you’re unlikely to face an audit.
- If the IRS is communicating with you about an audit, your rights are not at the top of their minds.
- You will be given a specific date, time, and location, and you are required to attend the meeting, often with a legal representative.
- If you feel nervous about your income, portfolio earnings, your medical practice, etc., you might want to consider implementing some sort of audit protection.
At the IRS meeting, I spoke on his behalf, leading to a favorable outcome that saved him over $30,000, as well as saving him from additional penalties. Expert help, meaning a tax attorney who understands every twist and turn of the audit process and can spot errors before they become serious issues is essential. We help you gather the correct documents and stand by your side when things heat up. TurboTax MAX’s worth comes down to how much you’re concerned about being audited. If you’re in that “unlikely” category, there might be better places to spend that $59.
The company is also investing heavily in AI to help automate filing and catch potential mistakes in real-time. Taxpayers also have the right to know the time period needed to challenge any positions taken by the IRS. And the interests of the IRS are to collect as many taxes as they can to keep federal revenue flowing the way they want it to.
In the most extreme cases, penalties from audit errors can result in hefty fines or even jail time, making professional assistance crucial. When it comes to tax attorneys, shopping around can be helpful to compare and contrast what services you’re getting and what the going rate is. If you ever find yourself in is turbo tax audit defense worth it need of a tax attorney, trade audit panic for preparation with finding a qualified attorney who will represent you.
Is TurboTax Audit Defense Worth It? Know The Truth
You can also add Live Assisted for an extra fee, where you get help from live tax experts throughout the process and have the expert review it before submitting. Most services have a tier system like this, which is helpful for adjusting services based on your individual needs. In addition, most tax preparation services develop their software to be as straightforward and succinct as possible. If you don’t have issues entering your information (as long as you enter it correctly), it’s not likely you’re at risk for an audit. Though hiring a tax attorney may be more costly upfront, it’s often worth the investment for those with complex tax needs. Dimov’s attorneys provide a tailored approach, ensuring clients maximize deductions and avoid costly mistakes that TurboTax may overlook.
Users get a free consultation and audit information support to help them understand what’s happening if they receive an audit letter about their return. You will also be shown how to prepare for an audit and will have your audit-related questions answered year-round. TurboTax promises 100% accurate calculations, or it will pay your IRS penalties, offering a fair amount of peace of mind. It’s good to know that your return will be accurate, but the chance of an audit still remains. If you qualify for TurboTax Free, you might be able to file your federal and state taxes without paying anything. However, the Basic version starts at $59 for federal filing and $49 for state filing and pricing goes up from there based on which plan you choose.
TurboTax will provide you with a dedicated expert who will represent you and handle all communications with the IRS. The company will also develop a plan of action and prepare all IRS documents for you. TurboTax takes much of the complexity out of tax preparation by offering a guided, user-friendly experience that supports a wide range of tax situations. TurboTax offers several features designed to simplify tax preparation and help users get the biggest possible refund. One standout feature I really like is the ability to import W-2s, 1099s and investment income reports directly from financial institutions. The desktop version is installed on your computer, allowing for offline access and local data storage.
One is included with allversions of TurboTax and the other is an optional add-on service, with thebiggest difference being the amount of dedicated help you get if you’reaudited. News, discussion, policy, and law relating to any tax – U.S. and International, Federal, State, or local. The IRS is experiencing significant and extended delays in processing – everything.
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. TurboTax Audit Defense, an optional add-on through TurboTax MAX (around $60), aims to protect users in the event of an IRS audit.
The goal is to get the features you need — without paying for upgrades you don’t. With tax laws changing regularly, TurboTax remains valuable thanks to its in-depth guidance, educational resources and hands-on help throughout the filing process. Most importantly, taxpayers have the right to have an experienced tax attorney at their side during any proceedings. These notices typically request supporting documentation for a deduction, credit, or another aspect of your return.
Tax season can feel overwhelming, but the right software can simplify the process. As a result, the audit wrapped up in four months instead of eight, and the additional tax liability was minimized. A proactive, dedicated audit defense team saves time, money, and significantly reduces financial risk. For an additional $59, MAX users receive full audit representation, aka its Audit Defense offering.
For those who have never been through the audit process and want to make sure they’re not being taken advantage of, this expert guidance can be well worth the cost. Ultimately, the goal is to simplify your tax season — not add unnecessary costs. With the right version and a clear understanding of your needs, TurboTax can make filing your taxes a streamlined and stress-free experience. While TurboTax simplifies the tax filing process, there are a few considerations to keep in mind. Before filing with TurboTax, it’s important to know that not all versions are free. This can save time and reduce errors, especially for users with multiple income sources — though not all financial institutions are supported.