Each year a certain portion of all taxpayers will receive tax notices from the Internal Revenue Service or a state taxing authority questioning a deduction or income item as part of on-going efforts by the government to ensure taxpayer compliance by monitoring and questioning tax returns.  Others receive more serious notices of an audit or tax lien.  Our experience has been that the taxing authorities frequently make mistakes due to inadequate training to understand the transaction or poor quality control over data entry and review processes.  Unfortunately, whether the tax notice is accurate or not, you, the taxpayer, must respond at your own expense.

      Although we will always do our best to advise you appropriately and prepare your tax returns correctly, these tax notices and audits still might affect you.  Our standard tax preparation fee includes the preparation of the tax returns and our meetings related to them.  Our fee does not include answering tax notices and/or Internal Revenue Service (or State) representation as a result of an audit (unless it is due to our error).

      Our new program, which is voluntary, offers a way to protect against what could be an expensive fee situation.  The typical fees involved to answer a tax notice can range from $200 - $500 or more depending upon the complexity and the frequency of contact with the taxing authorities.  An audit can cost in the range of $1000-$2000 or more.  In response to many of our clients desiring protection against these fees we have developed this voluntary program.

Advantage Program Details

      If you elect this option, we will determine the extent of the additional cost based upon the risk assigned to your tax return.  This additional cost will be expressed as percentage of your tax preparation fee. This percentage will range from 10%-50% depending upon the risk presented. We will discuss the exact percentage as it relates to your tax return during our meeting with you.  For this additional fee, you will be entitled to our consulting services, without restrictions or limitations, should you be sent a tax notice that requires a response or, worse yet, an audit which requires an extensive amount of planning and strategy.  For example, if you elect this option on your 2002 tax return and your normal fee would have been $300, we would add $45 (15% just for this example) to your invoice.  This coverage will always exist for your 2002 tax return regardless of when the notice or audit notification is sent (so, if they send a notice in 2005, for example, we will honor our obligations).  Since tax returns can be audited or questioned for a period of 3 years after filing, if you wish to have this protection for prior years, please feel free to discuss the situation with us.  We are glad to provide protection for these prior year tax returns only if we prepared them. For the fee as explained above you are afforded a great deal of protection from the expense of dealing with the taxing authorities.  We urge you to consider electing the Advantage Program.

What The Plan Does Not Cover

      The plan does not cover any of the taxes or penalties/interest that might be due as a result of the Internal Revenue Service or State Tax Authority inquiry or audit.

Participation is Easy

      When you meet with us you will be asked if you desire to participate in the Advantage Program.  If you choose to mail or drop off your information, this program will be discussed with you when we confirm your fee.  As the Advantage Program is for one tax year at a time, you will be asked in future tax years whether you wish to continue (each tax year is separate).  Election of this program must be done by the time the tax return is completed and paid for.

            We are very excited to be able offer you this program and will be glad to answer any questions or concerns you might have.