Is review support included?

A review can arrive years after the claim is paid,1Source 1A tax authority can review a claim after it has been paid, within time limits set by law: Internal Revenue Code section 6501 (United States); Finance Act 1998 Schedule 18 paragraphs 24 and 46, via HMRC Enquiry Manual EM1510 and Compliance Handbook CH51300 (United Kingdom); Taxes Consolidation Act 1997 section 959AA, via Revenue Notes for Guidance Part 41A (Ireland); Income Tax Act section 152(3.1) and (4) (Canada); Income Tax Assessment Act 1936 section 170, Income Tax Assessment Act 1997 section 355-705 and the ATO, Request an amendment to a business or super tax return (Australia); Tax Administration Act 1994 section 108, via Inland Revenue SPS 20/03 (New Zealand); Income Tax Act 1947 section 74 (Singapore). More detail on your country page. and the person who built the claim is best placed to explain how it was built. Review support means help: preparing documents, answering questions, attending meetings. It does not mean the adviser pays any tax, interest or penalties; who pays those is a separate question. Whether help is included, what it covers, how long it lasts and what it costs if it is not included can change the real price of a proposal by more than the headline fee.

The adviser health check asks you: "Is help with a tax authority review included, and is it written down?"

A clause that says review support is included, what it covers (correspondence, meetings, revised calculations), for how long after filing, and who does it. If support is charged separately, a rate and an estimate. If the adviser's help is limited to the claim as filed, a clear statement that work on new information is extra.

Support that is "available" without a price. Support that ends when the engagement ends, which may be before the review starts. An hourly rate for review work with no budget. A letter that does not mention reviews at all.

• The clause: review and audit support
• The script: asking for a fee cap
• Red flag: review support costs extra. Green flag: review support is in the price
• Myth: the adviser is responsible if it goes wrong. Adviser health check

Sources

1. A tax authority can review a claim after it has been paid, within time limits set by law: Internal Revenue Code section 6501 (United States); Finance Act 1998 Schedule 18 paragraphs 24 and 46, via HMRC Enquiry Manual EM1510 and Compliance Handbook CH51300 (United Kingdom); Taxes Consolidation Act 1997 section 959AA, via Revenue Notes for Guidance Part 41A (Ireland); Income Tax Act section 152(3.1) and (4) (Canada); Income Tax Assessment Act 1936 section 170, Income Tax Assessment Act 1997 section 355-705 and the ATO, Request an amendment to a business or super tax return (Australia); Tax Administration Act 1994 section 108, via Inland Revenue SPS 20/03 (New Zealand); Income Tax Act 1947 section 74 (Singapore). More detail on your country page.  Back