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

FAQs

Cost of IRS Audit Defense | Cross Law Group? ›

Appeals: Our fees for going through IRS appeals typically range from $5,000 to $10,000. US Tax Court: Our fees for taking a case to US Tax Court typically range from $7,500 to $15,000.

With TaxAudit, you should never have to meet the IRS or state taxing authority! An Audit Defense Membership can be purchased each tax year for a nominal, one-time fee of only $49.99 — rather than fees over $150/hour that other tax professionals charge. Become a member today!

If charged as a flat fee, your total tax audit representation cost could be anywhere between $2,500 and $10,000 per tax year under examination. It may go even higher if your case goes to the U.S. Tax Court.

Because pre-paid services tend to be generic, we recommend working with an audit defense professional if and only if you get an audit. Though an audit defense isn't free, it can be well worth the money, especially when going head-to-head against the IRS.

Types of irs represenation Fees:

Every power of attorney will charge a different hourly rate, but most rates are between $200 to $400 per hour. Highly experienced attorneys or attorneys working in big firms in large cities can charge more than $1,000 per hour.

Audit costs: $5-60k

Your firm's size will also impact the audit fee. The bigger your company, the more you're likely to pay. Of course, the CPA firm you hire will influence the price as well.

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.

The IRS generally audits a larger share of high-income taxpayers than those with lower incomes, as illustrated in Figure 1. However, those who claim the Earned Income Tax Credit (EITC)—who typically have low incomes—are much more likely to face an audit than all but the highest- income taxpayers.

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.

On a scale of 1 to 10 (10 being the worst), being audited by the IRS could be a 10. Audits can be bad and can result in a significant tax bill. But remember – you shouldn't panic. There are different kinds of audits, some minor and some extensive, and they all follow a set of defined rules.

What not to say to an auditor? ›

The Statute of Limitations for the IRS is typically three years from the date of filing or the due date, whichever is later, and is typically four years for States. Expiration Date of Membership: The Expiration Date of Membership is based on the Acceptance Date.

$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.

Auditors listed changes to ICFR first, followed by acquisitions and the impact of 2022 economic uncertainty. “Mergers and acquisitions result in complex accounting and auditing work, translating to increases in audit effort and higher fees,” according to FERF's survey report.

The main driver for this increase was regulatory pressures and the ongoing skills shortages. The value of audit fees paid by the UK's 500 biggest businesses climbed from £1.05bn in 2019/20 to £1.12bn in 2020/21 before hitting £1.27bn in 2021/22.

The easiest way to get audit defense is to purchase it when you file your taxes with TurboTax®. 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.