Audit Protection Policy
Terms & Conditions
Effective Date: January 21, 2026
These Audit Protection Terms & Conditions (“Terms”) govern the optional IRS Audit Protection service offered by KAC Consulting, Inc. (“Firm,” “we,” or “us”) and apply only if the Client elects Audit Protection in connection with the preparation of an individual income tax return.
1. Election of Audit Protection
Audit Protection is an optional service and is not included by default with tax preparation services. Audit Protection applies only if the Client affirmatively elects the service and pays the applicable fee, as reflected on the Firm’s invoice.
By electing Audit Protection, the Client agrees to be bound by these Terms.
2. Scope of Audit Protection Services
If elected, Audit Protection includes representation before the Internal Revenue Service (“IRS”) in connection with an audit or examination of the federal individual income tax return prepared by the Firm under the applicable engagement.
Covered services include, as applicable:
- Review and analysis of IRS audit or examination notices
- Written correspondence with the IRS
- Telephone communications with the IRS
- Virtual or in-person meetings with the IRS, if required
- Assistance during the IRS examination stage only
Audit Protection is limited to the examination phase of the audit process.
3. Tax Years Covered
Audit Protection applies to one federal income tax return for one tax year prepared by the Firm.
Audit Protection may include responding to IRS questions or information requests that reference other tax years solely to the extent necessary to support items reported on the covered return, provided those other tax years are not themselves under audit or examination.
Audit Protection does not apply once the IRS opens a separate audit, examination, or inquiry for any other tax year.
4. Services Not Covered
Audit Protection does not include:
- Appeals, protests, or representation before the IRS Office of Appeals
- Litigation, court proceedings, or representation before any court
- Audits or examinations of tax years not prepared by the Firm
- State or local tax audits or examinations
- Criminal investigations, fraud examinations, or matters involving willful misconduct
- Preparation or filing of amended returns
- Bookkeeping, reconstruction of records, or forensic accounting
- Assistance with collection matters, liens, levies, or payment plans
If the audit progresses beyond the scope described above, the Firm may, at its discretion, offer a separate engagement for additional services.
5. Fees
The fee for Audit Protection is equal to 10% of the total tax preparation fee charged for the covered return.
Audit Protection fees are non-refundable once representation services have commenced.
6. Penalties and Interest
The Client remains responsible for payment of any additional taxes, penalties, and interest assessed by the IRS.
The Firm will not be responsible for penalties or interest unless such amounts are directly attributable to an error made by the Firm in the preparation of the covered tax return.
7. Client Cooperation
Audit Protection is conditioned upon the Client’s full and timely cooperation, including but not limited to:
- Promptly providing all information and documentation requested
- Responding to communications within reasonable timeframes
- Attending meetings or conferences as reasonably requested
Failure to cooperate may result in suspension or termination of Audit Protection, at the Firm’s discretion, without refund.
8. Firm Discretion and Professional Judgment
The Firm retains sole discretion over the manner and strategy of representation, including decisions regarding communications with the IRS and the handling of audit issues, consistent with applicable professional standards.
The Firm does not guarantee any particular outcome as a result of Audit Protection services.
9. Limitation of Liability
To the fullest extent permitted by law, the Firm’s liability arising out of or relating to Audit Protection services shall not exceed the Audit Protection fee paid by the Client.
The Firm shall not be liable for any indirect, incidental, or consequential damages.
10. Governing Agreement
These Terms supplement the individual income tax engagement letter between the Client and the Firm. In the event of a conflict, these Terms govern with respect to Audit Protection services.
11. Acceptance
Election of Audit Protection and payment of the applicable fee constitute acceptance of these Terms.
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KAC Consulting, Inc.