How does AuditShield work?

AuditShield - R&D Tax Audit Insurance

Almost all taxpayers are subject to tax obligations. As well, the business operations of most companies are examined by tax authorities. Because of this, it is crucial for business owners to employ some form of tax audit insurance in order to protect themselves from costly fees, penalties, and other financial and operational ramifications that can come as a result of an official audit.

With its mission to help companies accelerate innovation and business growth by maximizing R&D tax credits, Boast has developed the ideal solution to the risk and probability of tax audits.

AuditShield, the financial platform’s tax audit insurance product, is a valuable resource for taxpayers as it reduces the likelihood of being audited during an R&D Tax Credit claim. It does this by providing expert guidance and regular check-ins from in-house tax professionals to ensure your audit documents are complete and accurate all year round and help you avoid rushing to meet tax deadlines and providing software to facilitate the consolidation of data from your technical and financial systems into comprehensive and detailed audit documents.

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Products Vector-2-arrow AuditShield – R&D Tax Audit Insurance

What does AuditShield cover?

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AuditShield is designed to cover your business during an R&D Tax Credit claim, which is a government-sponsored incentive for companies that invest in projects or programs meant to improve a product or business process’ performance, functionality, accuracy, or quality. For instance: the development of new manufacturing processes, the construction of new software and equipment, or the employment of designers and engineers dedicated to your R&D project.

Audits are usually conducted when auditors spot gaps or inconsistencies in your claim. They also often entail high costs due to potential penalties for proven errors or discrepancies as well as professional fees incurred for the service itself.

AuditShield’s intuitive technology covers the consolidation of critical data like tickets, timestamps, and transactions from your internal systems, and organizes them into clear and complete tax and financial statements in order to protect your business from R&D Tax Credit claim risks. This technology is enhanced with a human touch—that is, consistent counsel and guidance from Boast’s in-house tax experts to help you prepare and validate your claim as efficiently and successfully as possible.

With all these features combined, Boast’s AuditShield not only lessens the risk of being selected for an audit, but it can also help you reduce your tax claim preparation time to as much as 90%. Besides that, the platform boasts a strong track record, winning as much as two times the industry average in tax audits, so you can work on your claim with R&D Tax Credit.

How to Claim Audit Insurance

There are a few different ways to go about claiming tax audit insurance. The first is to purchase a policy from an insurance company. This type of policy will provide coverage in the event that your business is audited. The second option is to take out a policy with an accounting firm. This type of policy will cover the cost of any legal fees or fines that may be assessed as a result of the audit.

No one enjoys the idea of an audit, but if your business is selected for review by the Internal Revenue Service (IRS), it is important to know what to do. Audit insurance can help you relax a bit during this process, knowing that you are fully protected from any potential financial damages. Here are the steps to take in order to make a claim:

  1. Contact your accounting firm immediately. The sooner you have professionals on your side, the better. They will be able to guide you through the process and represent your interests during the audit.?
  2. Gather all relevant documentation. This includes financial statements, tax returns, and contact information for any related parties.?
  3. Submit a claim to your insurance company. Be sure to have all of your paperwork in order, as the insurance company will likely want to review it.?
  4. Let the professionals take care of the rest. The accounting firm will work with the insurance company to make sure that the audit goes as smoothly as possible.

What you should know about CRA and IRS Audit Insurance

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It is important to understand what CRA and IRS audit insurance is, and how they can protect your business.

CRA audit insurance is a policy that defends Canadian businesses against audits by the CRA. Coverage includes legal fees, accounting advice, and other associated costs. This type of insurance policy is essential for companies that deal with significant government contracts, as the CRA is known for its rigorous auditing process.

IRS audit insurance is similar to CRA audit insurance, but covers businesses in the United States. The IRS is well known for conducting thorough audits, so having coverage can save you time and money if you are ever faced with an audit activity.

Both CRA and IRS audit insurance can be purchased as standalone policies or as part of a wider accountancy insurance policy. It is important to research your options and find the policy that best suits your business needs.

Boast AuditShield™

We’ll defend you in an IRS or CRA audit. Plus we compile detailed audit documents from your systems by combining tickets, timestamps, and expenses.

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AuditShield Advantage

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We’ll defend you in an IRS or CRA audit. Plus we compile detailed audit documents from your systems by combining tickets, timestamps, and expenses.

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SR&ED Tax Specialists Have Your Back

In-house experts prepare and validate your claim, applying their collective decades of experience in finance, tax, and technology to maximize your eligibility. Regular check-ins throughout the year mean you are always making the most of your innovations without the end-of-year deadline scramble.

AI-powered Software

  • Payroll
  • Accounting
  • Jira
  • Github
automated

The Boast platform gathers data from your technical and financial systems to identify and categorize eligible projects, time, and expenses—estimating along the way instead of only at the end—and getting you more money, faster, for less time, and risk.

  • Time Tracking
  • Cash
  • Audit Evidence
  • Tax Forms

Customer Success Stories

R&D Tax Credit: Research and Development US

TRAC

TRAC Challenges Traditional Venture Funding with Innovative ‘Moneyball’ Approach to Business Investment

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New Ventures BC®

British Columbia Tech Companies’ Growth and Innovation Accelerated by Partnership between NVBC and Boast

Scientific Research and Experimental Development Tax Credit

Neo Financial

Neo Offers the Future of Financial Services to Canadians Through Its Focus on R&D and Innovation

Frequently Asked Questions

A:
Boast AuditShield is included with any R&D or SR&ED BoastClaim Generally, however, it is a very affordable way to protect your business from potential audit expenses.
A:
The main benefit of the AuditShield is that it can help protect your business from costly professional fees and business audits. It can also help ensure that your tax returns are prepared accurately and in compliance with all applicable laws. Other benefits include: (1) Coverage for CRA or IRS tax audits; (2) Protection against costs associated with CRA or IRS audits, such as legal fees and accounting fees; (3) Peace of mind knowing that you are protected against costly tax audits;
A:
All Canadian and U.S. taxpayers who file a personal tax return are eligible for AuditShield. This includes individuals, sole proprietors, partnerships, and corporations.
A:
Every business and individual in Canada is eligible for AuditShield coverage, as all are subject to IRS and CRA tax audits. This insurance product provides protection against the costliest of these audits, including legal fees and accounting fees. It’s an important step in safeguarding your finances.
A:
No, it's automatic coverage with any BoastClaim for the year of that submission.
A:
The length and scope of time needed during audits vary by many things, including the quality of information obtained during auditing. Unless requested data is not provided or difficult to find, delays may occur. In case your records don't exist then you must seek copies of their creation (e.g. banks, suppliers). The records may not be available for you, but it's possible for a team of accountants to contact you and work together to find the correct amount.
"R&D helps us accelerate our innovation. When you’re an early-stage company building in a new market, speed is critical. We’re very grateful for the R&D incentive program and the dedicated support and guidance from Boast."
CHRISTIAN KARRER, PLANTIGA VP FINANCE AND STRATEGY

Find Out How Much Money You Can Get From The Government

Our manufacturing R&D tax experts will quickly assess which of your activities are eligible for R&D tax credits. During this conversation we will highlight:

  • Determine what manufacturing activities qualify for R&D tax credits
  • Tactics to reduce your teams time in preparing your R&D tax credits
  • Estimate the total return you can expect in your current fiscal year
  • Provide ideas to maximize your current and past claims
  • Learn about the Boast platform, and how we simplify your claim process

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