Addressing today’s emerging risks.
GJS Re has actively traded with Lloyd’s of London for more than 50 years. GJS Re has developed unparalleled expertise with Tax Audit Cover Solution, a new Lloyd’s product that protects individuals and Accounting firms when a tax audit is triggered. Give us a call!
Nothing is more disturbing than receiving a notice of audit from the Internal Revenue Service or a State or Local tax authority. While paying taxes and filing an annual tax return is painful enough, being audited raises the anxiety to a new level.
The IRS audits over 1 million returns each year. And every IRS audit triggers an alert to the State, in addition to the audits each State conducts independently. But while the odds of being audited are somewhat low, the costs are high. The average American who receives an audit notice can count on paying $5,500 in extra taxes, and that’s before penalties, interest, accounting and legal fees. Those expenses add up to an average of $8,000.
Whether a taxpayer filed their return using on-line software or engaged a CPA to prepare and file their return, they are exposed to the uncertainty and expense of preparing for an audit. No one knows the US Tax Code as well as the IRS, nor do they know the intricacies of each tax form or “speak the language.” As Forbes magazine described it, “going through a tax audit unrepresented is penny wise and pound foolish. It practically assures the worst possible result of the audit for you.”
Fortunately, there is a way to protect taxpayers who have received an audit notice from the IRS or another Tax Authority. Tax Audit Cover Solution (TACS) is an insurance product backed by Lloyd’s that provides taxpayers with professional representation and up to $25,000 financial protection should they be selected for an audit. TACS is available to both individuals and corporations, as well as Accounting firms to protect their clients.
TACS is typically distributed to individuals through membership associations and affinity groups. TACS can also be imbedded into insurance policies as a value-added feature.