Should You Pay For Audit Protection

Audit protection is a service most tax preparation companies advertise as an upsell to help you if you get a notice from the IRS.

These services can involve responding to IRS letters, representing you when speaking with the IRS, or even reimbursing you if the tax prep company made a mistake.

I hate dealing with bureaucrats. The thought of spending time in line at the DMV is so repulsive that I tried to pay someone to wait in line for me (the person didn’t show up, so I eventually had to go).

If the DMV causes me this much pain, you can imagine how bad I would feel getting audited by the IRS. I know this is hyperbolic, but being audited sounds like death by 1,000 paper cuts. Which brings me to the crux of this post. Should you get audit protection for your taxes - which is a big upsell of most of the major tax software products out there.

Personally, I put my extra money towards bookkeeping software. I think that’s the better use of the dollar.

However, the peace of mind factor may ultimately push you towards buying audit protection. In that case, I recommend being as smart as possible. Or use H&R Block software to get the most protection for the least cost.

Should you (or I) pay for audit protection for your taxes. You may be surprised that in most cases, I think the answer is no.