TaxAct Audit Defense
Terms and Conditions
Last Updated: October 23, 2026
These TaxAct Audit Defense Terms and Conditions (these “Terms”) govern the audit assistance and support services (the “Service”) made available by TaxAct, LLC (“TaxAct,” “we,” “our,” or “us”) to customers that use eligible TaxAct tax preparation software or services. As used in these Terms, “you” or “your” means the taxpayer or taxpayers identified on Your Return. By enrolling in, accessing, using or accepting the Service, you agree to these Terms.
These Terms apply only to the specific return for which the Service was purchased or enrolled.
In addition to these Terms, your use of the Service is subject to the TaxAct Terms of Service and any other terms presented to you in connection with your TaxAct account, any other account used to access the Service, or the Service (collectively, the “Platform Terms”), which are hereby incorporated by reference as if fully stated herein. If there is a conflict between these Terms and the applicable Platform Terms, these Terms will control solely with respect to the Service.
Important Notice Regarding Arbitration and Class Action Waiver
THE PLATFORM TERMS CONTAIN IMPORTANT PROVISIONS GOVERNING HOW DISPUTES BETWEEN YOU AND TAXACT ARE RESOLVED, INCLUDING MANDATORY INDIVIDUAL ARBITRATION, A CLASS ACTION WAIVER, LIMITATIONS ON LIABILITY, AND WAIVER OF JURY TRIAL RIGHTS. BY ENROLLING IN, ACCESSING, USING, OR ACCEPTING THE SERVICE, YOU AGREE TO THOSE PROVISIONS.
Definitions
For purposes of these Terms:
“Audit” means written inquiry, review, request for information, notice, proposed adjustment or similar tax compliance matter initiated by a Taxing Authority relating to Your Return.
“Audit Notice” means a written notice, letter, request for information, proposed adjustment, assessment notice, or other written communication issued by a Taxing Authority relating to an Audit of Your Return.
“Service” means the audit assistance and audit defense services described in these Terms.
“Software” means the applicable and eligible online TaxAct tax preparation software or service used by you to prepare and file Your Return.
“Tax Professional” means a credentialed tax professional, including an enrolled agent, CPA, attorney, or other authorized representative selected by TaxAct or its service provider.
“Taxing Authority” means the IRS or applicable state taxing authority.
“Your Return” means a consumer prepared 1040, 1040-NR, 1041, 1120, 1120S, or 1065 federal income tax return, and if applicable the associated state income tax return, for which the Service was purchased, or enrolled, provided that TaxAct determines the return is eligible for the Service.
How the Service Works
Subject to these Terms, the Service is available to help you respond to certain IRS and state income tax Audit Notices relating to Your Return. If you receive an Audit Notice related to Your Return that you believe may be covered by the Service, you must contact TaxAct, within 30 days of receiving the Audit Notice, through the support channel, online portal, or other intake process designated by TaxAct and provide a complete copy of the Audit Notice and related correspondence. TaxAct may also request a copy of Your Return, supporting tax documents, proof of identity, authorization forms, and any other information reasonably needed to determine eligibility and provide the Service.
To access the Service, you may be required to create or use an account and provide the voucher number or other enrollment information issued to you in connection with your purchase of the Service. Creating an account or providing a voucher number does not establish eligibility or expand the scope of the Service under these Terms.
TaxAct will review your submission to determine whether the matter is eligible for coverage. If eligible, TaxAct may provide the Service directly to you or through its service providers and may assign the matter to one or more Tax Professionals or authorized representatives. TaxAct or its representative may contact you by phone, email, secure message, or another method using the contact information you provide if additional information, documentation, authorization, or participation is needed.
You remain responsible for timely responding to TaxAct and providing all requested information. Submitting an Audit Notice does not guarantee coverage unless TaxAct confirms the matter is eligible under these Terms.
Authorizations and Communications with Your Tax Professional.
To receive the Service, you may be required to complete and sign certain authorization forms, including IRS Form 2848, IRS Form 8821, similar state forms, tax information authorizations, consents to disclose or other documentation authorizing TaxAct or its designated representative to communicate regarding Your Return, Audit Notice or a Service matter.
TaxAct may provide the Service directly or through affiliates, contractors, service providers, or other third parties acting on behalf of TaxAct.
TaxAct and its service providers may use artificial intelligence (“AI”) tools, including machine learning, automation tools, and other technology-assisted processes provided by third parties (“AI Tools”) to deliver and improve the Service, including for intake, document processing, notice classification, workflow routing, drafting assistance, customer communications, quality review, and related operational functions. These AI Tools are used to assist TaxAct personnel and Tax Professionals in providing the Service and certain communications may not involve human review in every instance, but any use that relates to tax liability or calculations will always include human review. When AI tools are used to provide the Service, the information entered into the AI tool may be used to train, modify, improve, or fine-tune our instance of the applicable AI tool, but will not be used to train third-party instances of large language models.
You acknowledge that the Service does not guarantee any particular outcome, reduction in tax, or favorable resolution of any Audit. TaxAct may decline or discontinue the Service where continued representation would violate applicable law, professional standards, licensing requirements, or these Terms.
General Terms and Conditions of the Service
1. Scope of Services.
Subject to these Terms, depending on the nature of the Audit and your eligibility for coverage, the Service may include:
reviewing Audit Notices and related correspondence;
explaining the Audit process and requested documentation;
assisting you in gathering and organizing supporting documentation;
preparing written responses to the applicable Taxing Authority;
communicating with the applicable Taxing Authority on your behalf where authorized;
providing remote administrative representation in connection with an eligible Audit;
providing general guidance and remote assistance with tax-related identity verification or identity theft matters directly related to Your Return, including IRS or state income tax authority identity verification notices, identity theft affidavits, and similar tax authority forms or procedures as further described in these Terms;
providing assistance and general informational guidance for tax debt relief options directly related to Your Return or eligible Audit, including installment agreements, offers in compromise, penalty abatement, tax liens, wage garnishment relief, and other available administrative collection alternatives, as TaxAct determines appropriate and as further described in these Terms; and
providing other related audit assistance services that TaxAct may make available, in its discretion, as a part of the Service.
The Service may be provided directly by TaxAct or through TaxAct’s affiliates, service providers, and any assigned Tax Professional or authorized representative, as TaxAct determines appropriate and authorized.
The Service is limited to remote assistance and remote administrative representation for eligible IRS or state income tax Audits, unless TaxAct expressly agrees otherwise in writing.
The Service is available subject to the availability of our team of Tax Professionals. More than one Tax Professional may work on Your Return, and non-tax professionals and other authorized representatives may assist in the process of collecting your documents, scheduling any contact with you, reviewing your documentation and the applicable Audit Notice.
2. Eligibility
The Service applies only to Your Return if (i) the Service was properly purchased or enrolled before the return was filed with the applicable Taxing Authority, and (ii) such return is prepared and filed though the Software and accepted or acknowledged by the applicable Taxing Authority. TaxAct may determine eligibility for the Service in its sole discretion.
3. Service Limitations and Exclusions. The Service is limited to the audit assistance and remote administrative representation services expressly described in these Terms.
The Service is not insurance and does not guarantee any particular outcome, reduction in tax, or favorable resolution of any Audit.
Unless TaxAct expressly agrees otherwise in writing, the Service does not include:
returns not expressly designated by TaxAct as eligible for Service coverage;
returns not prepared and filed through the Software;
returns that are rejected by the IRS or state taxing authority;
returns that were prepared, filed, purchased or enrolled in violation of these Terms, the Platform Terms or applicable law;
returns involving foreign reporting obligations, including FBAR or FATCA reporting;
990 returns;
local, city and county returns;
returns containing or prepared using fraudulent, misleading, intentionally omitted, inaccurate, or incomplete information;
returns not actually filed with the applicable Taxing Authority;
in-person attendance at any Taxing Authority office, customer location, hearing, conference, interview, or other physical location;
payment or reimbursement of taxes, penalties or interest owed;
legal advice, attorney-client representation in any judicial proceeding, including United States Tax Court, federal district court, bankruptcy court, criminal court, appellate court, or state court proceedings;
representation requiring licensed legal counsel where TaxAct reasonably determines that attorney representation is necessary or appropriate;
preparation or filing of amended returns;
bookkeeping, accounting reconstruction, creation of missing records, appraisals, valuations, or expert witness services;
collection representation, offers in compromise, bankruptcy matters, garnishment defense, levy defense, lien matters, or long-term collection assistance, except as expressly stated in these Terms;
payroll, sales, use, property, gift, excise, franchise, gross receipts, or foreign tax matters;
matters involving tax shelters, listed transactions, or abusive tax avoidance transactions, or income from illegal activity;
financial, investment, or accounting advice;
any guarantee that the Audit will result in a favorable outcome;
matters involving suspected fraud, tax evasion, money laundering, willful misconduct or criminal investigations or criminal tax defense;
Audits initiated before the Service was purchased or before the applicable return was enrolled in the Service;
situations where you fail to cooperate or timely provide requested information, documentation, authorization or participation needed to provide the Service including as required under Section 5 (Your Responsibilities);
frivolous tax positions or constitutional tax protestor arguments;
Audits involving ownership interests in partnerships, S corporations, trusts, or other pass-through entities not covered by the Service;
matters outside the jurisdiction of U.S. federal or state income tax authorities;
Audits relating to tax years or returns not covered by the Service;
any services not specifically described in these Terms; or
any matter where TaxAct reasonably determines continued representation is impracticable, unsafe, abusive, unethical, or unlawful.
TaxAct reserves the right to determine eligibility for and scope of the Service coverage in its sole discretion.
TaxAct may decline or discontinue services where continuing representation would violate applicable law, professional standards, ethical obligations, or licensing requirements.
Additionally, TaxAct may limit, decline, suspend, or discontinue Services if TaxAct determines that the matter cannot reasonably be handled through remote assistance or remote administrative representation, or if continued assistance would be impractical, unsafe, unethical, unlawful, or inconsistent with applicable professional standards.
4. Coverage Period.
Coverage for each Your Return begins on the date of purchase or enrollment, provided that the return satisfies all other eligibility requirements, as determined in TaxAct’s sole discretion, and continues through the expiration of the applicable statute of limitations for Your Return, unless earlier terminated under these Terms (“Coverage Period”).
Unless otherwise required by law or stated in your purchase confirmation, the Coverage Period generally expires:
three (3) years after the filing date for the applicable Your Return; or
such longer or shorter period as may apply under applicable law.
Coverage applies only to Audit Notices relating to a Your Return that are first issued during the applicable Coverage Period.
5. Your Responsibilities.
To receive the Service, you agree to:
promptly notify TaxAct of any Audit Notice, and in no case later than thirty (30) days after receipt;
provide complete, accurate, and timely information and documentation requested by TaxAct or the assigned Tax Professional or authorized representative within the time required by applicable law or the Audit notice, and in any event, no later than thirty (30) days after receiving TaxAct’s request;
cooperate fully with TaxAct, its affiliated entities and third-party service providers and the assigned Tax Professional or authorized representative;
review all submissions before they are sent to a Taxing Authority;
execute any required IRS Form 2848, Form 8821, state power of attorney, or similar authorization;
maintain adequate records supporting items reported on Your Return;
timely pay all taxes, penalties, and interest ultimately determined to be due; and
refrain from directly negotiating with a Taxing Authority on matters assigned to TaxAct unless otherwise instructed by TaxAct.
Failure to comply with these requirements may result in suspension or termination of the Service.
6. Authorizations, Power of Attorney, and Representation.
To receive representation services, you may be required to execute IRS Form 2848, Form 8821, or similar state authorization forms appointing TaxAct’s designated representative.
You authorize TaxAct and its representatives to receive and review tax information relating to the covered matter, communicate with Taxing Authorities on your behalf, prepare and submit responses and supporting documentation, and take other actions reasonably necessary to provide the Service.
TaxAct may assign one or more Tax Professionals to your matter based on licensing, experience, workload, or subject matter expertise.
If TaxAct reasonably determines that a matter requires representation by legal counsel, including but not limited to matters involving litigation, criminal exposure, privileged legal advice, or court proceedings, TaxAct may terminate further representation under the Service. In such event:
you will be solely responsible for retaining legal counsel at your own expense; and
TaxAct will reasonably cooperate in transferring the applicable administrative file and relevant records to your designated attorney upon receipt of appropriate authorization.
No settlement, concession, or binding resolution will be accepted without your authorization.
7. No Legal Services or Attorney-Client Relationship.
Unless expressly stated otherwise in writing, the Service does not constitute a law firm engagement and does not create an attorney-client relationship.
Although attorneys may participate in providing certain services, the Service primarily involves tax representation and audit assistance services.
Nothing in the Service should be construed as:
legal advice;
financial advice;
investment advice; or
a guarantee regarding the outcome of any Audit.
8. Accuracy of Information.
TaxAct and its representatives may rely entirely on the information and documentation you provide.
You acknowledge and agree that:
TaxAct is not responsible for independently auditing or verifying your information;
you remain solely responsible for the accuracy and completeness of Your Return and for reviewing any information submitted on your behalf;
TaxAct may request additional clarification or documentation but is not obligated to discover omissions or inaccuracies; and
any inaccurate, incomplete, or misleading information may result in denial or termination of the Service.
9. Tax Debt Relief Assistance.
If an eligible Audit or Your Return results in, or is associated with, a balance due, TaxAct may provide general informational guidance and assistance related to tax debt relief options, including installment agreements, offers in compromise, penalty abatement, tax liens, wage garnishment relief, and other administrative collection alternatives, as TaxAct determines appropriate.
Tax debt relief assistance is subject to your eligibility under applicable IRS or state requirements, your timely cooperation, and your submission of all requested financial information, tax records, authorization forms, and supporting documentation. TaxAct does not guarantee that any installment agreement, offer in compromise, penalty abatement, lien relief, garnishment relief, innocent spouse relief, or other tax debt relief option will be accepted or approved.
10. Tax-Related Identity Verification and Identity Theft Assistance.
The Service may include general guidance and remote assistance with tax-related identity verification or identity theft matters directly related to Your Return, including IRS or state income tax authority identity verification notices, identity theft affidavits, and similar tax authority forms or procedures. TaxAct may explain the applicable process, help identify relevant forms or documentation, assist you in preparing for communications with the applicable Taxing Authority, and, where authorized and deemed appropriate by TaxAct, communicate with the applicable Taxing Authority on your behalf. You remain responsible for verifying your own identity, providing required identification documents, and participating in any call, online process, interview, or other communication required by the Taxing Authority.
11. Fees; Refunds; Non-transferability.
The Service is offered for an additional fee established at the time of purchase. Service pricing, availability, features, and eligibility requirements may change at any time.
The Service is separate from and independent of any TaxAct calculation accuracy guarantee, maximum refund guarantee, expert accuracy guarantee, or similar product guarantee unless expressly stated otherwise in writing. Each purchase covers only the taxpayer or taxpayers identified on Your Returns described in these Terms or the applicable purchase confirmation.
Except as required by applicable law, the Service fee is nonrefundable, and the Service may not be returned, transferred, or resold.
The Service applies only to Your Return and may not be transferred, assigned, resold, substituted, or applied to another taxpayer, account, or return.
12. Termination of the Service.
TaxAct may suspend or terminate your access to the Service immediately upon notice if:
you breach these Terms or the applicable Platform Terms;
you fail to cooperate or provide requested information;
you engage in abusive, threatening, unlawful, or inappropriate conduct;
TaxAct reasonably suspects fraud or illegal activity;
continued representation would violate professional obligations or applicable law;
payment for the Service is declined, reversed, charged back, disputed, or otherwise not received by TaxAct; or
you revoke necessary authorizations required for representation.
Termination of the Service does not affect your obligation to pay any taxes, penalties, or interest owed to a Taxing Authority.
13. Disclaimer of Warranties.
EXCEPT AS EXPRESSLY PROVIDED IN THESE TERMS, THE SERVICE IS PROVIDED “AS IS” AND “AS AVAILABLE.” TO THE MAXIMUM EXTENT PERMITTED BY LAW, TAXACT DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR PERFORMANCE.
TAXACT DOES NOT GUARANTEE:
ANY PARTICULAR TAX RESULT;
THAT AN AUDIT WILL BE RESOLVED FAVORABLY;
THAT A TAXING AUTHORITY WILL ACCEPT ANY POSITION TAKEN ON A RETURN;
THAT PENALTIES OR INTEREST WILL NOT BE ASSESSED; OR
THAT THE SERVICE WILL BE UNINTERRUPTED OR ERROR-FREE.
14. Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, TAXACT AND ITS AFFILIATES, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, CONTRACTORS, TAX PROFESSIONALS, AND REPRESENTATIVES SHALL NOT BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES; LOST PROFITS; LOST REVENUE; LOSS OF DATA; LOSS OF BUSINESS OPPORTUNITY; TAXES, PENALTIES, INTEREST, FEES, OR OTHER AMOUNTS ASSESSED BY A TAXING AUTHORITY; ACTIONS TAKEN BY A TAXING AUTHORITY; OR DAMAGES ARISING FROM INFORMATION, DOCUMENTS, INSTRUCTIONS, AUTHORIZATIONS, OR CONSENTS PROVIDED OR NOT PROVIDED BY YOU OR ANY AUTHORIZED REPRESENTATIVE.
TO THE MAXIMUM EXTENT PERMITTED BY LAW, TAXACT’S TOTAL AGGREGATE LIABILITY ARISING FROM OR RELATING TO THE SERVICE SHALL NOT EXCEED THE AMOUNT PAID TO TAXACT FOR THE SERVICE. NOTHING IN THESE TERMS LIMITS LIABILITY THAT CANNOT LAWFULLY BE LIMITED UNDER APPLICABLE LAW.
15. Governing Law. These Terms are governed by the governing law provisions contained in the applicable Platform Terms.
16. Dispute Resolution. Any dispute arising from or relating to the Service or these Terms shall be governed by the arbitration, dispute resolution, class waiver, and jury waiver provisions contained in the applicable Platform Terms, which are incorporated herein by reference.
17. Changes to the Service. TaxAct may modify these Terms, the Service, eligibility requirements, supported return types, the tax years for which the Service is available, enrollment procedures, service delivery procedures, coverage procedures, or related features or requirements at any time, subject to applicable law. Updated Terms will become effective upon posting or other notice as determined by TaxAct.
TaxAct personnel, service providers, Tax Professionals, sales representatives, support representatives, and other personnel are not authorized to modify these Terms or to make any additional representations, commitments, warranties, or obligations binding on TaxAct, unless expressly agreed in writing by an authorized TaxAct representative.
18. Privacy. Information collected in connection with the Service is subject to the TaxAct Privacy Notice. You authorize TaxAct to collect, receive, use, retain, and share information relating to the Service, including your tax return information, Audit Notices, authorizations, documents, contact information, service activity, and communications, as reasonably necessary to provide, administer, support, bill, collect payment for, and improve the Service.
You authorize TaxAct to share information with TaxAct affiliates, service providers, Tax Professionals, authorized representatives, Taxing Authorities, payment processors, and other parties reasonably necessary to provide, administer, support, bill, collect payment for, or improve the Service.
TaxAct may communicate directly with you regarding the Service, including coverage, eligibility, enrollment, intake, documentation, authorizations, service delivery, billing-related matters, and related support.
19. Entire Agreement. These Terms, together with the applicable Platform Terms, TaxAct’s Privacy Notice, and any Service-specific notice or authorizations presented to you, constitute the entire agreement between you and TaxAct concerning the Service. If any provision of these Terms is invalid or unenforceable under applicable law, then it shall be, to that extent, deemed omitted and the remaining provisions will continue in full force and effect.
