is anyone familiar or use the Tax Protection Plan?

[WITAXLADY]

looking at the TPP - where 1040 client pays $10 to have Tax Protection Plan and if get IRS or state letters/audits - 3rd party takes care of the issues - client can contact direct or I can for them?

But the TPP does all the leg work?

Any experience using it anyone please?

I am unsure what time it would save on simple missing forms, etc but on the bigger 1-3 audits a year on Sch c,F, - that I have to charge up tp 45,000 to arrange their records, receipts - I would see that it would help both myself, office and client..?

[joanmcq]

I haven’t used it.  But I used to work for a firm that did that kind of stuff under TurboTax’s protection plan. It worked, especially for the smaller audits. CP2000s & simpler full on audits. But I got yelled at for working harder audits too much, ones where you had to really fight for the client. I remember one when I was fired where the guy was an author for fairly esoteric scholarly books and had a nearly zero income Sch C, for the time he was researching. He had previously been published, so it was ok to have that. But they just wanted me to close it out. 

[Sara EA]

5 hours ago, WITAXLADY said:

but on the bigger 1-3 audits a year on Sch c,F, - that I have to charge up tp 45,000 to arrange their records, receipts

Charging that kind of money for audits and you only need a few clients a year!

[WITAXLADY]

OOPS - the 4 was supposed to be a $$$ $5,000

 

read before posting!

The issue is it takes to much time out of the already overburdened staff

We now have about 70 family or 1 person S corps and the payroll, PPP, retention credit, adding retirement programs, etc..  = just conceerned that the company would not put the energy into like joanmcq does! and then we would still have to get involved..

Or we would just offer our own to them for $10??

[ILLMAS]

I remember back in 2005 a new client asked if we offered that protection, because HR Block offered it to them and that they pay any additional tax I have always wondered how that worked for them

[DANRVAN]

I would not advise a client to sign up for it.  

[schirallicpa]

10 hours ago, DANRVAN said:

I would not advise a client to sign up for it.  

I probably agree with you but wondering if you could give reason.

 

[DANRVAN]

On 10/27/2021 at 8:27 AM, schirallicpa said:

you but wondering if you could give reason.

I question whether the 3rd part would have the competence or act in the best interest of the client.

The last full blown audit I worked on involved a 1040X refund for a new client.   The previous CPA had overstated his taxes due from a 1031 exchange and some overlooked deductions from his ranching operation.   How far would $10 go on that?