You need to be always prepared especially if one of your clients gets audited by the ATO. Lawyers and accountants play an important role to protect their clients from possible situations where they are required a tax audit. At any given time, the client may be chosen by the agency to be audited. It’s really essential for members to be prepared well should a tax audit happen. That’s why they need a tax audit insurance to prepare them for unexpected ATO audits.
Protecting Your Clients
When possible tax audits happen, the individual or business may be asked to reconcile business activity statements with their tax returns. The tax audit insurance will provide them with professionals to back them up in times of tax audits by the ATO. The expert lawyers and accountants will protect their clients in the event of audits. To really be protected, the individual or business owner may need a tax audit insurance to shoulder the expenses of hiring a professional.
What Comprises a Tax Audit?
According to experts, the tax audit under a policy will involve official audits, enquiries, investigations or reviews in relation to the client’s tax returns and financial compliance obligations, which they need to act upon immediately.
If the client is protected by a tax audit insurance, they put the pressure off the client and into the professional representatives to deal with the ATO investigation. As professional and legal fees are spent in dealing with the ATO, the insurance company will cover the cost for hiring these professionals.
So, what is Audit Insurance?
The audit insurance will ensure substantial costs incurred with the ATO or other government agencies doing the audit, investigation, enquirer or review. They will prepare their client against tax and legislative requirements that ATO may demand on them.
By preparing them well, accountants and lawyers can prevent possible conflicts with them regarding fees or penalties incurred as a result of the tax audit. Clients will be happier when you know a tax audit insurance is there and proactive in such situation that leads to considerable costs. How to find them will need you to search reputed audit insurance companies, either found online or through actual offices in your area.