CUSTOMER PROTECTION AGREEMENT
The AuditGuard® Protection Plan is a service warranty program that provides you
with professional support in the event your tax return is subjected to an IRS audit.
AuditGuard provides you with one-on-one support from a licensed C.P.A. or Enrolled
Agent who will work directly with you and the IRS throughout every phase of the
open audit. Our agents work to defend your rights and privileges under the Federal
Tax Code and utilize extensive means to protect your assets within the confines
of the current tax laws. The objective of our support team is to satisfactorily
resolve all targeted areas of your audit and eliminate or minimize any increases
in your tax obligation. This plan also provides reimbursement of assessed interest,
penalties and certain increase in taxes up to $2,500*, in qualified cases (please
see below for qualification criteria). Your enrollment fee is 100% refundable
if at any point during the preparation for your audit, you become dissatisfied with
the level of support you receive.
Provisions for AuditGuard subscribers include:
1.01 Assistance from a dedicated CPA or Enrolled Agent throughout all phases of
the open audit. Our representatives provide:
- evaluation of all related IRS correspondence,
- explanation of claim requirements and the available
- expert consultation and strategic planning,
- aid with document organization and review for presentation,
- drafting of letters and necessary communication
as needed to resolve the issue,
- telephone correspondence with the IRS agent for
explanations and discussions during the audit session.
1.02 A cash reimbursement up to $2,500* of assessed penalties
and interest as well as certain increases in tax liability (please see below for
1.03 A full 36 months of coverage on each tax year for a
1.04 Coverage for returns with all major forms including
schedules C, E and F.
1.05 100% reimbursement of paid enrollment fees in lieu of
further assistance for any subscriber dissatisfied with their audit support. (Requests
for reimbursement must be made in writing prior to the commencement of any audit
The following defines our service limitations: 2.01 Coverage
is ONLY applicable to the tax year of purchase and does not extend to any other
tax year or previously filed returns.
2.03 AuditGuard does not provide assistance for IRS collection
notices or bills resulting from audits that were not defended through the subscriber’s
2.04 Coverage does not include physical appearance of a representative
during the audit session or face to face consultation. However, the assigned representative
is made available for telephone correspondence throughout the audit session as needed.
2.05 Coverage ends 36 months after the purchase date.
2.06 The return must be filed timely or within a valid extension
period granted by the IRS.
2.07 This agreement shall be render null and void if it has
been determined that the audit assessment is a result of:
- incomplete, false or otherwise fraudulent information knowingly provided
to Return Preparer by the subscriber for the preparation of the return,
- fraudulent information intentionally filed by the Return Preparer with or
without the subscriber’s knowledge or consent,
- the subscriber’s failure to provide the relevant records to either the AuditGuard
or the IRS within the prescribed thirty (30) days period following the claim,
- The subscriber taking a position on the return that challenges current tax
laws and IRS guidelines or interpretations which results in increased tax liability.
2.08 If the payment for coverage is not received via the
initial method attempted, it will become the taxpayer’s responsibility to pay all
fees to AuditGuard within 30 days of the return completion to ensure that coverage
remains in effect.
2.09 AuditGuard does not guarantee favorable actions taken
or decisions made by the IRS.
2.10 AuditGuard does NOT provide legal representation or
advice as a part of its audit support function.
2.11 AuditGuard Protection Plan is NOT AN INSURANCE POLICY
and AuditGuard Services, Inc. is NOT AN INSURANCE COMPANY, and does not operate
under the guidelines of any state or federal insurance regulations.
2.12 Subscription does not provide face-to-face audit representations
or appeals in Federal or Tax Court.
2.12 Service does not include filing of appeals, audit reconsideration
2.13 Support service does not include compilation of receipts,
reconciliation of checkbooks or bank statements, record keeping, bookkeeping or
other clerical tasks.
2.14 AuditGuard does not cover returns NOT accepted by the
Some audits, tax returns, and/or audit issues may be excluded from coverage for
any of the following reasons:
3.01 Pre-existing Audits – Audits with the condition where
the date of the audit notice from the IRS precedes the date of coverage. Coverage
date is the date payment and subscription information is received by AuditGuard
for the subscriber's plan.
3.02 Large Business – Sole-proprietorships, farm or rental
property businesses filed on the 1040 return with gross receipts exceeding $1 million
3.04 Criminal Investigation Audits – Audits for returns that
has been or becomes subjected to IRS other criminal investigations.
3.05 The following types of returns are excluded from coverage:
- non-resident federal returns;
- state and local tax returns filed in conjunction with Federal return;
- amended returns;
- corporate or partnership returns such as 1065, 1120-S,
- trust, franchise, estate, and gift tax issues;
- appeals to positions taken by the IRS following the close of an examination;
- returns containing items or issues that have been previously or currently
banned by the IRS.
4.0 REIMBURSEMENT POLICY:
Eligibility for reimbursement of assessed penalties, interests and taxes are determined
on a case by case basis. Qualifications for reimbursement are determined by AuditGuard’s
Underwriting Department and are subject to all limitations and exclusions outlined
in sections 2.0 and 3.0 of this agreement. All reimbursements are assessed on an
individual line item basis. Only disputed items for which the IRS rejects “valid
and sufficient” support provided by the Subscriber in a timely manner, shall be
considered for reimbursements. Any Item for which the Subscriber fails to provide
“valid and sufficient” supporting document, shall NOT be eligible for reimbursement.
In each case, the assigned Tax Professional shall determine the validity and sufficiency
of supporting items prior to presentation to the auditor. Qualified reimbursement
will be made only after all the criteria outlined in this agreement are satisfied
and the Subscriber provides AuditGuard with proof that all tax obligations have
been paid in full to the IRS.
5.0 CLAIM PROCEDURES:
Failure to comply with procedure and strategy actions recommended by your assigned
AuditGuard agent or other AuditGuard representatives associated with your case,
may result in an unfavorable outcome. Failure or refusal to comply with requests
or instructions from the IRS or it agents during your audit may result in adverse
actions taken by the IRS to your detriment. In either case AuditGuard will
not be held responsible for the outcome and reserves the right to cease providing
service where reasonably warranted.
6.0 CLAIM PROCEDURES:
- In the event you receive IRS notification
- Immediately notify AuditGuard of any notices from the IRS regarding adverse decisions.
Failure to act in a timely manner could result in the IRS taking irreversible actions
to your detriment.
- Be prepared to provide AuditGuard with copies of all notices and other government
documents relating to the audit or assessment at the time of contact. Provide
AuditGuard with a copy via fax, email or mail to the contact information below.
- AuditGuard will assist you with a speedy process of assigning us Power of Attorney
to for your case.
- Once we have an IRS Power of Attorney, you have the right to request that the IRS
agent speak directly to us as your representative.
- Immediately after fully reviewing your case and identifying targeted areas, an assigned
AuditGuard representative will consult with you to clearly explain the full scope
and details of the examination and identify your available options for providing
support as requested. We will discuss your rights as a taxpayer as it pertains
to your case and formulate a strategy for presenting your best support for the most
- Based on your consultation, your assigned representative will outline a list of
required documents to be provided (based on the availability) along with acceptable
alternatives for supporting your claims.
- AuditGuard will assist you in organizing your documents for presentation and consult
with you throughout the entire process as well as providing explanations regarding
your return to the IRS agent on your behalf.
- If the situation is warranted, AuditGuard may provide a tax professional to accompany
you or attend the audit in your place. In such cases, an additional charge
of $150 per hour of representation will be assessed to you.
Whereas, AuditGuard offers an Audit Protection Plan for distribution and sales through
independent third parties groups including software companies, Auditguard shall
assume all responsibilities and liabilities associated with the performance of the
plan. AuditGuard shall indemnify, hold harmless and reimburse the manufacturers/distributors
of the software, and their officers, directors and employees (whichever may incurred
the loss), for all cost, including without limitation, attorney’s fees, judgments
penalties, payments of other direct expenses and payments in settlement or other
disposition of, or in connection with any claims, disputes, controversies or litigation
arising out of the actual breach by AuditGuard of its duties and obligations under
for more information about AuditGuard®
professional audit support services.