Most of the taxpayers dread tax audit. Mistakes happen while filing the tax returns, they may be human errors, typing errors or some missed documents. A small mistake in the tax returns might attract the attention of the ATO who may call for a tax audit. Tax audit is an intimidating and stressful process, which involves a lot of time and money.
In the unfortunate event of being called for a tax audit, the taxpayers need to present themselves before the ATO to give proper explanations to the omissions and errors in the returns. They require the services of many professionals like accountants, lawyers, advisors, and valuers etc. to help them get the required information to deal with the ATO. All these professionals charge huge amount of fees. Since the tax audit is a long drawn process, the fees of these professionals runs into thousands of dollars before the audit is completed. All these expenses are to be borne by the taxpayer himself which causes a huge financial strain. Buying a good audit protection insurance like audit shield helps these taxpayers to cover the expenses involved in tax audit and reduce the financial strain.
The benefit of buying audit shield is it protects the taxpayers and the accountants from the financial burden of tax audit. It provides a safety net to the taxpayers and accountants and eases the pressure and stress involved in filing the tax returns. The policy covers all the professional costs involved during the process of tax audit. The taxpayers can get the best lawyers and advisors to assist them in their enquiry without worrying about the costs.
Like any other insurance policy the amount covered by audit shield is fixed depending upon the nature of the business, the amount of tax paid and the required cover. It is recommended to go through the fine print of the policy before buying it.
Since the benefits of audit shield apply to both the tax payers and their accountants, it is the best tax audit insurance policy. The costs of the policy are paid by the firm and there is no extra cost to offer it to the clients. It helps accounting firms to stay ahead of competition and portray a professional image and make their clients feel safe.