Who's Better at Audit Support: Turbo Tax or TaxCut?
The actual chances of being the unlucky recipient of an IRS audit are pretty slim. Only about 1.5 percent of all taxpayers are audited each year. Even this relatively small percent isn't enough to make most tax payers rest easy, though. Guidance, representation and general help are definitely wanted.
Unless you plan on going out and hiring a tax attorney once you've been served with a notice of audit, you're pretty much on your own if you haven't purchased a tax preparation service that offers audit support. The two major players here are TurboTax and TaxCut; both offer audit support when you file your tax return through them.
Worry-Free Audit Support is H&R Block's TaxCut version. This is a free service that applies to any successfully e-filed, individual resident income tax return that is done through TaxCut. Basically, all that you need to do here is retain your e-file confirmation email. If you receive notice of an audit, you'd call 1-888-4TAXCUT to initiate audit services. Through TaxCut, audit support includes assistance with communications to the IRS, providing information on how to prepare for the audit and an agent that will guide you through the "audit experience".
Audit Defense is Turbo Tax's audit support. This service can only be purchased through TurboTax software, which means a small extra fee (usually under $50). Unlike TaxCut's version, this one protects individuals, businesses and fiduciaries. If you wind up needing Audit Defense's services, you'll work directly with TaxResources, Inc. This company will professionally defend you in an income tax audit. They help with communications and meetings, from receipt of an audit notice to completion of the audit.
In the end, an individual is less likely to need audit support than a business. If you're looking to save money, go with the free version through TaxCut. The rest of us will probably feel much more protected under the services of Audit Defense, where we're defended throughout the entire audit process - and not just given information.