After you purchase a CryptoTaxAudit 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 has processed the authorization form, we will obtain access to your account and transcript information. We will notify you once our weekly monitoring of your account has begun.

Members will receive an email notification that their IRS Account IRS Analysis report is available to review.

If an audit flag is detected on your account, we will send you a notification via email.

Yes. Our parent company, Donnelly Tax Law, can assist in resolving all types of IRS examinations and audits. We can also assist with establishing a payment plan if you are unable to pay your taxes in full or have IRS debt collection issues.

No. A CryptoTaxAudit membership also protects your prior returns. When you file your current return, it will also be covered.

Audit Defense is like car insurance in case you get audited. You need to have an insurance policy before you have an accident. When a member announces they have received an audit letter, we check their IRS transcripts to see if the audit would have been known before becoming a member.

Absolutely not! When you become a CryptoTaxAudit member at any level, you will sign an IRS Form 2848 “Declaration of Representative”. If the IRS targeted taxpayers who had representation, that would be an abuse of the Taxpayer’s Right to Representation which the IRS Commissioner requires all employees to respect per tax code section 7803(a)(3).

Our top priority is to have audit capacity to handle any audits occurring with our Audit Defense members. We do not guarantee that we will have the capacity to defend Early Warning members. It will be offered on a selective based on available capacity. Schedule a private consultation to discuss your specific situation and options.

Yes. We have significant data confidentiality practices. We use enterprise-grade applications and policies that significantly exceed the 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. All data is kept on encrypted storage.

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. 

• Return preparation and crypto gain calculation
• District court
• State courts
• No IRS communications are handled with an Audit Defense level membership, unless you are under audit or examination. 
• For White-Glove members, we instruct the federal and state tax authorities to copy us on all written communications.

Watch this video to learn how a CryptoTaxAudit membership can provide you with an early warning of an IRS audit. Click to view →

The IRS doesn’t like to use the word “audit”. They call auditors “Revenue Agents” and they call human-driven and computer-driven audits “examinations.” At CryptoTaxAudit, we don’t engage in doublespeak. We consider all examinations, however driven, to be audits.

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 computer-driven. 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.

There is a statute of limitations that limits the IRS to three years to audit a return. But there are exceptions. If income is under reported 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. 

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