Yardley CPA Posted February 1, 2014 Report Share Posted February 1, 2014 I’m not sure if this topic has been discussed on this forum or not, but the 2013 1040 Efile page contains a section promoting “Protection Plus” that provides an audit representation for clients. The cost is $39 for those clients who wish to subscribe to this service. A nice marketing tool but I'm not sure how reliable the service would be nor will I personally promote it. I don't expect any of my clients will be interested in this and if an audit does occur, I offer to represent. The webiste contains additional information: http://myprotectionplus.com/ Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 1, 2014 Report Share Posted February 1, 2014 I can offer my own audit protection, and I will pocket the $39 with every return... I REALLY dislike that ATX makes these deals with the "other" companies and then makes it REAL difficult to remove them from the client letter... Rich Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 1, 2014 Report Share Posted February 1, 2014 I can offer my own audit protection, and I will pocket the $39 with every return... I REALLY dislike that ATX makes these deals with the "other" companies and then makes it REAL difficult to remove them from the client letter... Rich In return manager, click on forms, then choose "customize master" Open the 1040EF INFO page and put an x in the "declines" box. Save it. Now any new returns will have that box checked as default. 4 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 1, 2014 Report Share Posted February 1, 2014 In return manager, click on forms, then choose "customize master" Open the 1040EF INFO page and put an x in the "declines" box. Save it. Now any new returns will have that box checked as default. That is what I did. It got real annoying real fast to have to check that box. Like the first time it happened. I am not in the business of doing CCH's sales for them. I hate those foreign ba$tard$ who own that company, and I will not support their marketing efforts to my clients. Tom Hollister, CA Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 1, 2014 Report Share Posted February 1, 2014 In return manager, click on forms, then choose "customize master" Open the 1040EF INFO page and put an x in the "declines" box. Save it. Now any new returns will have that box checked as default. I know its a simple as that... But why do I have to "opt-OUT" instead of "opt-IN"? 2 Quote Link to comment Share on other sites More sharing options...
The Kidd Posted February 1, 2014 Report Share Posted February 1, 2014 First time I saw this I was wondering if H&R block took over my ATX. I have never liked hearing that clients had to pay to covered. If it is something that is my fault (for instance the HOH I am dealing with), then I will do that for free. If it is something I did on my decision, then that is on me. but if they left out something, then I will assist them on what to do (and sometimes even send a letter for them) for free; but once they want me to represent, then there is fee to do so. Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 1, 2014 Report Share Posted February 1, 2014 Since less than 2% of all returns are ever audited, and about double that get CP-2000 letters, the "fee" is just more $$ to who ever sells it. I should just change the paragraph and add it to my invoices, and then, if there is ever an actual audit, then I am already paid. Probably thousands more than just the one client's representation fees. Hmmm... Rich 1 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted February 2, 2014 Report Share Posted February 2, 2014 Tax Act has something similar. The vast majority of my clients don't need it, but if someone has expenses that seem ridiculous, I'm going to tell them that they need to buy this or I won't do the return. In other words....don't come crying to me if you get audited. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 2, 2014 Report Share Posted February 2, 2014 Tax Act has something similar. The vast majority of my clients don't need it, but if someone has expenses that seem ridiculous, I'm going to tell them that they need to buy this or I won't do the return. In other words....don't come crying to me if you get audited. But if someone "has expenses that seem ridiculous", I'm not going to do the return, unless they can document them at least enough to answer my doubts. I'm not their auditor, but I have to sleep at night feeling like I have signed the return in the honest belief that its a valid return. 3 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 2, 2014 Report Share Posted February 2, 2014 Tax Act has something similar. The vast majority of my clients don't need it, but if someone has expenses that seem ridiculous, I'm going to tell them that they need to buy this or I won't do the return. In other words....don't come crying to me if you get audited. That seems to be a very dangerous attitude to me. "Take aggressive positions on the tax return and buy insurance just in case you get audited." I think the policy will have some limitations on what it will pay out. Now, I never read the policy because I don't trust any product that CCH is associated with, but if they are offering an "audit insurance" policy, I am pretty sure they are not going to pay out on unsupported positions. Just my two cents. Tom Hollister, CA 1 Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted February 2, 2014 Report Share Posted February 2, 2014 Maybe Tax Act. Is not the same.....it just covers representation if one is audited. It doesn't cover any taxes or penalties. I have one client I can think of.....a model/actress.....where her expenses are almost all of her income. I'm know she has the paperwork ....but, IMHO , that's a high "audit risk". I'd rather not be involved with an audit.... L (I've been trying to drop her because she is a PITA....but she gives me a lot of referrals.) "Ridiculous" means.....what is she living on! Her boyfriend pays the rent and buys the food. Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 2, 2014 Report Share Posted February 2, 2014 Reading some of the posts about fees that some of you charge, a $39 fee for "audit insurance" would seem to add up to a third to your clients fees. And the only thing is does, is line the pocket of CCH. And if something goes wrong, and there is an audit, CCH (or who ever is the ins provider) will not PAY YOU, but will likely ASK you for a lot of INFO and NOT pay you for that. And then have a another firm do the audit that they have under contract. "Audit Insurance" is NOT protection against someone getting Audited, its just a prepayment of the fees that you could charge them if there WAS an audit. In HRB's case, they would "attend" with you when you went to the audit.. So, your best bet, is to replace the verbiage with your name and number, and get the $$ for yourself. If 20 returns bought the insurance from you, that would be $780 (20*$39) My audit fees in the past when I had an in office visit? About a grand to a grand and a half. And Its been five years since I had one? Sweet. Rich Quote Link to comment Share on other sites More sharing options...
Mr. Pencil Posted February 2, 2014 Report Share Posted February 2, 2014 In HRB's case, they would "attend" with you when you went to the audit.. That's actually a lot of help, even though officially they only go to explain how the return was prepared (i.e., defend HRB). Protection Plus does not offer anything other than paperwork review. They will pay up to $2500, apparently including P&I, but only "if your tax preparer made a legitimate error on your return." On their website Protection Plus claims 70% of the market for "Audit Assistance," so they must be defining that term pretty narrowly. Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted February 2, 2014 Report Share Posted February 2, 2014 I try really hard not to do returns that wave flags. Again.....I like life without complications. I've never had anyone with a real audit....all issues have been solved with a phone call or letter. I'm really just thinking of it to let "whomever" know that the return might be questioned. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted February 3, 2014 Report Share Posted February 3, 2014 By signing upi for these types of deals, you lose both control and a major money maker. Doing the audit yourself is always more lucrative. Quote Link to comment Share on other sites More sharing options...
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