Overview

TaxAct proudly offers Audit Defense, Powered by Drake Software.  This offering is a post-filing service that gives your clients (taxpayers) access to credentialed tax experts when they receive an IRS notice, state notice, audit inquiry, or experience tax-related identity theft.

For eligible cases, the Audit Defense team assists with case communications and documentation related to the covered tax authority matter.

Audit Defense covers the following post-filing issues: 

• IRS notices 
• State notices 
• Audit inquiries 
• Assistance and guidance for tax-related identity theft

Find a full list of services in the Audit Defense Terms.

Enrollment Types

There are two enrollment structures designed to fit different practice models. Both programs include the same Audit Defense service benefits for covered eligible returns. Eligible return types and billing structure vary by enrollment type.

• Practice Coverage: blanket enrollment for your entire tax client base for individual and/or business returns
• Per-Return Coverage: add audit defense on a tax return-by-return basis as elected by the client for individual returns

Both options are managed directly through the My Account page. Enrollment details, tracking, and status updates regarding the Covered Return are accessible from where you already work.

Enrollment Steps

Coverage applies beginning with eligible Tax Year 2026 returns filed beginning on January 1, 2027. To complete your enrollment, follow these steps:

1. Go to the Audit Defense product page.
2. Click Explore enrollment options.
3. Click Enroll under which coverage type you would like to enroll in:
   • Practice Coverage
   • Per-return Coverage

Practice Coverage

• The Shopping Cart will be displayed showing your selection. Click Checkout.

• Sign into your TaxAct Professional account.
• Add your payment information.
  • You will not be charged at the time this registration is submitted.
  • This card will be charged periodically as you file tax returns.
• Review the Terms.
• Select the box I have read and agree… then click Confirm.

Per-return Coverage

• The Shopping Cart will be displayed showing your selection.
• Click Checkout.

• Sign into your TaxAct Professional account.
• Add your payment information.
  • You will not be charged at the time this registration is submitted.
  • This card will be charged periodically as you file tax returns.
• Review the Terms.
• Select the box I have read and agree… then click Confirm.

Billing

The firm, preparer, ERO, or company enrolled in Audit Defense will be billed periodically for covered returns.

NOTE You must keep a valid payment method on file for the auto-draft of fees. Currently, a credit card is the only supported payment method.

Pricing

Audit Defense pricing depends on which program you decide to enroll in.

• Per-Return Coverage 1040 Returns only – $54.95
• Practice Coverage 1040 Returns – $9.00
• Practice Coverage Business Returns (1041, 1065, 1120, 1120-S) – $65.00

Frequently Asked Questions

How long do the Audit Defense services last?

Audit Defense is provided on the federal return and state returns for three years after filing.

Are tax returns for prior years covered by Audit Defense?

No. Coverage applies only to the return that was enrolled in Audit Defense, beginning with Tax Year 2026 returns.

Can Audit Defense be used on 1040-NR, 706, or 990 returns?

Audit Defense does not cover 1040-NR, 706, or 990 returns. If using Audit Defense, you will not be billed for a 1040-NR, 706, or 990 return that is filed through TaxAct.

Who will assist with an audit?

Eligible cases are supported by credentialed tax experts.

How do I add a mark-up fee when using the Per-return Coverage?

You can add a mark-up fee when filing a return that includes a refund-transfer product. The mark-up fee can be a maximum of $65.00 per return (maximum cost to taxpayer of $119.99).

If I’m enrolled in Tax Protection Plus Firm-Level Coverage for Tax Year 2025, will I automatically be enrolled for Tax Year 2026?

No. If you currently use Protection Plus for Tax Year 2025 and would like to enroll in TaxAct Professional Audit Defense, powered by Drake Software for Tax Year 2026, you will need to separately enroll. For immediate questions, contact TaxAct Professional Sales at (319) 536-3571.  

You can continue to use Tax Protection Plus for 2025 returns through the applicable Tax Protection Plus coverage period.

I completed my enrollment, but want to change the program I have enrolled in. How do I do that?

If you are interested in changing programs, please contact us at (319) 536-3571.

FAQ: 51918