Cost of IRS Audit Defense | Cross Law Group | Cross Law Group (2024)

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Cost of IRS Audit Defense | Cross Law Group | Cross Law Group? ›

IRS Audit (simple): $2,000 – $3,500. IRS Audit (complex): $5,000 + IRS Appeals: $5,000 – $7,500.

If you want peace of mind that your return may not be accurate, and you don't want to scramble to hire someone out of fear if you get audited, it may be worth it for you. Just consider the likelihood of you getting audited — and the cost for the limited insurance vs.

The researchers find that the average upfront revenue per audit was $14,283, compared with an average cost, including exams, appeals, and collections, of $6,418.

The average cost of a tax attorney for IRS audit defense

Most tax attorneys charge fees based on the difficulty of each case. On average, a Brotman Law tax audit representation costs between $3,500 and $10,000 per tax year for most audit defenses against the IRS.

As an industry average, the hourly rate for IRS tax audit services starts at around $150, with $200 to $400 being a common range. For a highly experienced tax attorney in a big-city firm, you could be looking at an hourly rate of $1,000 or more.

H&R Block offers free audit support, but you also can buy a product called Worry-Free Audit Support. This includes IRS notice correspondence management and help, audit preparation and in-person audit representation from an enrolled agent; it costs $19.99.

Typically, the audit fee for newly incorporated companies ranges from ₹ 0.50 lakhs to ₹ 1.5 lakhs, regardless of market segmentation (B2B/B2C).

Who Is Audited More Often? Oddly, people who make less than $25,000 have a higher audit rate. This higher rate is because many of these taxpayers claim the earned income tax credit, and the IRS conducts many audits to ensure that the credit isn't being claimed fraudulently.

Some IRS audits require you or your representative to meet with an agent in-person, at an IRS office. Office audits are usually initiated within one year of when you file your federal tax return and can take roughly 3-6 months to complete.

Taxpayers have the right to appeal their audits. You must file your official protest within 30 days of the date on the letter sent by the IRS. Prepare for your hearing, present your case, and negotiate a settlement with the appeals officer.

Can I buy audit defense after I filed? ›

If you missed it this year or want to get Audit Defense for past years, you can purchase memberships through our TurboTax® Audit Defense site. From the homepage, click the “I want ongoing audit protection.” Click the “Get Audit Defense” button.

$1 Million Tax Audit Defense™. With Protection Plus, you have an entire tax audit defense department you can rely on. If our client receives a tax notice, audit, or inquiry, they will provide up to $1,000,000 in services to reach a resolution.

Audits often come years after you've filed your tax return. Audit Defense will cover your federal return for 3 full years and your state return for 4 years.

Simple Audits: For a simple audit, the cost is typically $2,000 to $3,000. A simple audit is one that does not involve a Schedule C business or rental property. It usually focuses on Schedule A items, such as unreimbursed employee expenses or charitable contributions.

Not all IRS audits will result in a penalty. If you're able to justify the items being reviewed on your return, the IRS will conclude the audit without imposing any charges or penalties.

While hiring a tax professional to assist in your audit defense can be costly, in many cases, the fees paid can be deducted on your tax return.

Audit Defense: Audit Defense means that TaxAudit will represent you through the completion of any income tax audit for the tax return year identified on the membership certificate during the Period of Membership. Audit notification must be received during the Period of Membership.