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TURBOTAX AUDIT DEFENSE MAY NOT BE WORTH THE PRICE

By Raoul Pop, March 31, 2010.                                                                                                            Originally Published by Raoulpop.com

Just a quick note to let you know the Audit Defense service offered by TurboTax in recent years is probably not worth the price. It’s run by a company called TaxResources, Inc., and they say they’ll represent you to the IRS in case you should have any problems with your return, for the low price of only $39.95.

Someone close to me got to find out exactly what they give you in return for that $39.95 “peace-of mind” fee, when an irregularity popped up on their tax return. They’d made an accounting error, found it out, wanted to report it to the IRS on their own, but contacted these folks because, after all, they did pay for the service.

In the meantime, the IRS also found out about the error and contacted them. This is where the Audit Defense service should have shined. Instead, my contact got the run-around. The Audit Defense team weren’t willing to help them in a timely fashion, didn’t want to contact the IRS on their behalf like they should have done, and only ended up helping them — if you might call what they got "help" — after several written requests. In the end, my contact lost out on precious time, got extra stress they didn’t need, and will need to pay the IRS additional penalties.

It looks to me like the Audit Defense people failed on three of their basic promises: they didn’t step in right away to deal with the IRS, they didn’t handle the entire tax audit, and they didn’t keep IRS penalties as low as possible.

The name of the employee who “helped” my contact with their IRS audit was Joe Schricker, and the company’s name again is TaxResources, Inc. The service is advertised as Audit Defense on TurboTax, and my advice to you is not to get it.