New Coverage · Available Through LIP

IRS Audit Insurance
for Business Owners

You can't prevent an IRS audit. But you can make sure it doesn't cost you $10,000–$50,000 out of pocket. InsureTax puts cash in your bank account the moment a validated audit notice arrives — no proof of loss required.

Lloyd's of London AM Best A+ S&P AA- Fitch AA-

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505K

IRS audits in FY2024 — now AI-driven and targeting more businesses than ever

9/10

Audited taxpayers face penalties — even when they've done nothing wrong

$250K

Maximum instant cash payout per policy — hits your bank account in days

Simple Process

Notice Validated. Money Moves.

Five steps from audit notice to cash in your account. No lengthy investigations, no proof of loss — the notice itself is the trigger.

Receive IRS Notice

You receive a qualifying IRS audit letter (Letters 2205, 525, 3572, or 915)

Submit to InsureTax

Submit the notice — simple, fast, no paperwork beyond the letter itself

Notice Validated

InsureTax confirms the notice qualifies under your covered tax years

Cash Hits Your Account

Up to $250,000 deposited in your bank account within days — no restrictions

Costs Covered

All audit-related costs — CPA, attorney, bookkeeping reconstruction — covered as incurred

What's Included

Three Layers of Protection

Every InsureTax policy includes three distinct coverage components — up to $250,000 per component.

⚡

Parametric Payout

Instant Cash Payout

Up to $250K

Paid immediately upon validated audit notice. No proof of loss, no deductible, no restrictions on use. It can be used for penalties, interest, lost revenue, business disruption — anything. Nobody else puts cash in your hand like this.

🛡️

Indemnity Coverage

Audit-Related Cost Coverage

Up to $250K

All audit defense costs covered — your CPA, tax attorney, bookkeeping reconstruction, and litigation costs. One shared pool for the entire policy period. 15% or $2,000 deductible, whichever is higher.

👤

Secondary Insured

Your Tax Pro is Covered Too

Up to $25K

Your CPA, EA, or accountant who prepared your return can be named as a secondary insured — covered up to 10% of your policy limit or $25,000. They keep their fees, you keep your relationship.

The Reality

What Happens When the IRS Comes Calling

An IRS audit can cost $10,000–$50,000 in professional fees alone — even when you've done nothing wrong. The difference between having coverage and not having it is significant.

❌ Without InsureTax

✕ Scramble to find a tax attorney out of pocket
✕ Pay $10,000–$50,000 in professional fees personally
✕ Months of disruption — pulling records, coordinating, responding
✕ Potential cash flow crisis for your business during the audit
✕ Penalties and interest come directly out of your pocket
✕ Stress, lost sleep, lost productivity for months

✓ With InsureTax

✓ Submit your notice — simple, fast
✓ Cash hits your bank account in days — up to $250,000
✓ All audit-related professional costs covered
✓ Your existing CPA or attorney handles the case — your choice
✓ Cash payout can cover penalties — no restrictions
✓ You focus on running your business

Who Qualifies

Built for Business Owners of All Sizes

From sole proprietors to companies with $50 million in gross receipts — InsureTax is designed for businesses with tax exposure.

✓ Eligible

✓ Small businesses with up to $50M in assets or gross receipts
✓ Sole proprietors and independent business owners
✓ Filing Form 1040 with Schedule C, E, or K-1 income
✓ Total positive income up to $10M
✓ Business returns: 1120-S, 1120, 1065
✓ Prior audit history considered — not automatic disqualification

Not Eligible

— Pure W-2 wage earners with no business income
— Anyone currently under IRS audit or who has received a notice
— Tax fraud or criminal conviction history
— Unfiled or late returns for the coverage period being applied for

Not sure if you qualify? Submit anyway — many accounts with prior audit history are approved. Each application is reviewed individually.

Common Questions

Frequently Asked Questions

What exactly triggers the payout?

A qualifying IRS audit notification letter — Letters 2205 A/B/C, 525, 3572, or 915 — for a tax year covered by your policy. The notice itself is the trigger. No proof of loss, no claim investigation, no waiting to see how the audit resolves.

Can I use the cash payout for anything?

Yes — absolutely no restrictions. You can use it for penalties, interest, lost revenue, business disruption, personal expenses, or anything else. It's your money the moment it's deposited. This is real cash, not a prepaid legal service.

How is this different from prepaid audit defense plans?

InsureTax is actual insurance backed by Lloyd's of London — not a service plan. Service plans assign their own representatives and don't pay cash. InsureTax deposits cash directly into your account and you choose your own CPA or attorney — no network restrictions.

What if the audit outcome is unfavorable?

The cash payout has no clawback regardless of the audit outcome. Defense costs are covered either way. The policy pays when you get audited — the IRS's final determination doesn't change that.

Can I use my own CPA or tax attorney?

Yes. You are not limited to a network. Any CPA, enrolled agent, or tax attorney you trust can handle your case. Your existing tax professional can also be named as a secondary insured on the policy.

What does it cost?

Coverage starts from approximately $1 per day for small businesses. Pricing varies based on business type, revenue, tax filing structure, and coverage level selected. Contact Patrick for a personalized quote — it takes about 2 minutes to run.

When do I need to purchase coverage?

Before receiving an IRS audit notice. Coverage cannot be purchased retroactively — once the letter arrives, it's too late. This is best positioned as proactive business planning, not reactive protection.

How many tax years can be covered?

Up to 7 tax years per policy. This means you can cover multiple prior tax years that are still within the IRS statute of limitations — not just your most recent return.

Backed by the World's Leading Insurance Market

InsureTax is underwritten at Lloyd's of London — the same market that insures the world's most complex risks. Tokio Marine Kiln · TMK Syndicate 510.

A+

AM Best · Superior

AA-

S&P Global

AA-

Fitch Ratings

Lloyd's of London market ratings · TMK Syndicate 510. All applications subject to underwriting approval. The instant cash payout has no restrictions — use it for anything. Named coverage focuses on audit defense costs.

IRS Audit Insurancefor Business Owners