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Protection Plus - Is anyone offering this plan to clients?


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Does anyone actually offer "Protection Plus" to your tax clients? I've always turned this off and relied on my professional liability policy to cover anything big, but now I am rethinking that decision.

New clients that have come here from HRBlock are used to their "Peace of Mind" program and would like to have something similar from us. Can anybody tell their story on Protection Plus?

 

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It's been a long time since I dealt with HRB's Peace of Mind program.  As I recall it worked best with people who had prior audits and persons with Schedule C's.  The one feature that stood out was that in case of an audit, HRB would represent you free of charge.

In order to promote the program, an incentive was offered to the preparer, but I don't quite recall what it was  - $5, maybe.

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A story I heard from a former HRB preparer was a situation where a mistake on the return was found after it was filed. The client owed several thousand more in tax. The "Peace of Mind" paid the tax as well as the P&I. My professional liability policy is not designed to pay a tax deficiency.

I know it is a "nothing burger" to offer the Protection Plus, but like Max said, some clients feel better to know that they had the option. If they don't elect to purchase, then they are on notice if something goes wrong, it was their choice to decline the extra service. Otherwise, we do charge to hand hold our clients if they are audited. We do not pay tax. We will pay P&I only if the client allows us to dispute the penalty with the IRS.

I am leaning toward offering the Protection Plus and having each client pro-actively deciding to "opt out." At this point, I don't know what, if any, commission is paid to us if we actually sell one of these policies.

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