What happens after I purchase an IRS Guard Dog membership?
After you purchase an IRS Guard Dog membership, you will sign the membership agreement and also the IRS Authorization Form (Form 2848) online. This form authorizes the IRS to communicate directly with us. The IRS takes several weeks to process the authorization form.
Once the IRS processes the authorization form, we will gain access to your account and transcript information. We will notify you once our weekly monitoring of your account has begun.
If an audit flag is detected on your account, we will send you a notification via email.
You will start receiving the IRS monthly status report about 4-6 weeks after your membership begins.
Can you help me if the IRS letter I received is not related to cryptocurrency?
Yes, we can assist in resolving all types of IRS examinations and audits. We can also assist with establishing a payment plan if you cannot pay your taxes in full or have IRS debt collection issues.
Should I wait to purchase an IRS Guard Dog membership until after my tax return is filed?
You can purchase your membership at any time. An IRS Guard Dog membership also protects your prior returns. When you file your current return, it will also be covered.
Will having an IRS Guard Dog membership make me more likely to be audited?
No. When you become an IRS Guard Dog member at any level, you will sign an IRS Form 2848 “Declaration of Representative”. The IRS allows taxpayers to obtain representation for tax matters.
If I’m an IRS Guard Dog member, will CryptoTaxAudit defend me in an audit?
Audit representation is included in our IRS Guard Dog Full Protection and Shared Risk memberships.
We do not guarantee that we will have the capacity to defend Proactive or Advisory Monitoring members.This service will be offered selectively, and we will provide a quotation for these services.
Is my data kept confidential?
Yes. We have significant data confidentiality practices. We use enterprise-grade applications and policies that significantly exceed IRS data protection standards. We use a secure identity verification process to prevent imposters. We restrict staff access to a need-to-know basis. We have significant network encryption and access control procedures.
What if I haven’t filed a prior year return?
A taxpayer doesn’t have to file a tax return if their taxable income would be $0. However, if you don’t file a return, the statute of limitations on auditing never starts. This is an important protection. The IRS can prepare a return for you if you don’t file and assess tax-called a “Substitute for Return (SFR)”. This is usually not favorable.
What is not included with the IRS Guard Dog membership plans?
Each membership level provides various services and support. Please review our Membership Agreement for more details.
What years are covered by my Audit Defense membership?
Audit Defense will defend you for any year the IRS chooses to audit. The monitoring service looks back to the year 2000.
If I receive a CP2000 letter, is that considered an audit?
Yes, we consider it an audit. A CP2000 letter is a letter sent by the IRS with the letter numbers “CP2000” at the top. A CP2000 letter is sent when the IRS computers detect that you didn’t account for all the W-2, 1099, and K-1 forms that the IRS knows about from companies that paid you money. Failure to account for all this income on your tax return is the number one cause for an audit.A CP2000 audit is driven by computer algorithms. You are given 30-days to send back a response to the IRS otherwise, they will charge the extra tax the computer calculates. We can assist you with a CP2000 audit.
How far back can the IRS go to audit a tax return?
There is a statute of limitations that limits the IRS to three years to audit a return. But there are exceptions. If income is underreported by 25%, the limit is extended to six years. If you file a fraudulent return, there is no limit. If you fail to file Form 8938 “Specified Foreign Financial Assets” when required, then the three year limit doesn’t start until the form is filed.
How can I get started with CryptoTaxAudit?
We're glad that you're ready to become a member of CryptoTaxAudit!