TaxBandits Includes $1M in Tax Protection With Every 940/941 Filing — Here’s How

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Filing a payroll tax return is not always the end of the process. Even after the IRS accepts a return, a business may receive a notice, request for additional information, or an audit related to a previously filed return.

That is where post-filing support can make a difference.

Thankfully, you’re not alone. TaxBandits has partnered with Protection Plus to provide eligible payroll tax filers with access to up to $1 million in professional tax resolution services. Protection Plus is automatically included with eligible returns filed and accepted through TaxBandits, with no separate enrollment required.

So, what exactly does the protection include, when does it apply, and what happens if an IRS notice arrives?

Let’s break it down.

What Is Protection Plus?

Protection Plus provides professional tax resolution support when eligible payroll tax filings lead to IRS or certain state and local tax issues after filing.

The service can help with matters such as:

• IRS notices and correspondence
• Compliance inquiries
• Verification requests
• Tax audits
• Certain payroll tax debt resolution matters
• Identity theft concerns related to eligible filings
• IRS representation by qualified tax professionals when required

Services are valued at up to $1 million, depending on the applicable case and coverage.

The goal is to provide support beyond the filing itself, so businesses and tax professionals have access to experienced professionals if questions arise after a return has been accepted.

Which Payroll Tax Forms Are Covered?

Although Protection Plus is often associated with Forms 940 and 941, the current TaxBandits program covers several eligible payroll tax returns.

Protection Plus applies to eligible returns filed through TaxBandits on or after March 20, 2026, including:

• Form 940 – Employer’s Annual Federal Unemployment (FUTA) Tax Return
• Form 941 – Employer’s Quarterly Federal Tax Return

This means the protection can extend beyond quarterly Form 941 filings to other eligible federal payroll tax returns filed through TaxBandits.

How Does the $1 Million Tax Protection Work?

The $1 million figure refers to the value of professional tax resolution services available through Protection Plus. It is not a direct $1 million payment or reimbursement to the filer.

If an eligible return is accepted by the IRS and a covered tax issue arises, Protection Plus can provide access to tax resolution professionals who can review the situation and help determine the appropriate response.

Depending on the situation, support may include:

• Reviewing the filed return and tax correspondence
• Explaining an IRS notice or request
• Preparing or assisting with a response
• Communicating with tax authorities on the filer’s behalf
• Providing professional representation when applicable
• Assisting with certain tax debt resolution matters

Credentialed tax professionals, including Enrolled Agents and CPAs, can assist with eligible matters, and attorneys may provide representation when required.

How Long Does Protection Plus Last?

Protection does not end when the IRS accepts the return.

For each eligible return, Protection Plus applies for up to three years from the IRS acceptance date.

This is important because an IRS question may arise well after the original filing date. The IRS may contact a taxpayer to ask about a return, request documentation, or conduct an examination. IRS audits can be conducted by mail or through an in-person interview, depending on the circumstances.

With the applicable Protection Plus coverage, eligible filers can have professional support available during the covered period.

What Happens If an IRS Notice Arrives?

Receiving an IRS notice does not automatically mean that a return was filed incorrectly or that an audit will follow.

The IRS sends notices for many reasons, including requesting additional information, explaining a change to a tax account, requesting payment, or addressing an issue with a return.

If a notice arrives, the first step is to read it carefully and identify:

1. Why the IRS sent the notice
2. Which tax return or period it concerns
3. What information or documents are requested
4. Whether a response is required
5. The deadline for responding

The IRS recommends responding by the date provided when action is required. Keeping the notice and supporting tax records is also important.

For an eligible TaxBandits filing, Protection Plus can provide professional assistance with reviewing and responding to qualifying IRS correspondence.

Is Protection Plus Automatically Included?

Yes.

Eligible returns filed through TaxBandits and accepted by the IRS are automatically protected. No separate enrollment or additional step is required.

There are also no separate Protection Plus charges or hidden fees for eligible filings under the current program.

This means the protection is built into the eligible TaxBandits filing experience rather than requiring a separate protection plan to be purchased.

What Is Not Covered?

Protection Plus has specific eligibility requirements and exclusions.

For example, coverage does not apply when:

• More than three years have passed since the IRS accepted the return
• The filer already knew about additional tax owed or an existing audit, letter, or notice when the return was accepted
• The return contains intentional fraud or knowingly false information
• The return becomes part of a criminal investigation
• The issue is outside the scope of assistance that Protection Plus can provide

Because coverage depends on the circumstances, filers should review the applicable Protection Plus terms when an issue arises.

File 940 and 941 With Support Beyond Filing

Filing a payroll tax return should not feel like the end of the road.

With TaxBandits, eligible payroll tax returns are automatically enrolled in Protection Plus after IRS acceptance. If a qualifying notice, inquiry, or audit arises during the coverage period, professional support is available to help navigate the next steps.

For eligible Forms 940 and 941, filed through TaxBandits, Protection Plus provides access to up to $1 million in professional tax resolution services and coverage for up to three years.

File with TaxBandits and get support that continues beyond acceptance.