Worried About an IRD Audit? Here’s How to Protect Yourself From the Cost

Even when you do everything right, IRD can still come knocking.

It might be a letter asking for clarification, a request to explain a few line items, or a full-blown audit. Whether it’s random, AI-flagged, or targeted, anyone can be selected for review, even if their tax return is 100% accurate. This is where IRD Audit help becomes essential.

If that happens, most people think:

“Surely I won’t have to pay anything if I’ve done nothing wrong… right?”

Unfortunately, that’s not the case. If you want proper representation and advice during an IRD review, you pay for the professional fees, even if it’s just a small question that snowballs into hours of work.

That’s why we recommend a simple solution: Audit Shield. More NZ businesses and charitable organisations are looking into tax audit insurance, like Audit Shield to avoid getting stung with unforeseen costs.

What is Audit Shield?

Audit Shield is a tax audit insurance product that protects you from the cost of being reviewed, audited, or investigated by IRD.

If Inland Revenue initiates any kind of activity, from a GST verification to a full income tax audit. Audit Shield covers the professional fees involved in responding to IRD on your behalf.

That includes our accounting time, admin work, and even external specialists if needed. There’s no excess and the cover applies to both current and past returns — even ones done by a previous accountant.

Why You Might Need IRD Audit Help (Even If You’re Compliant)

Here’s the thing:

• IRD’s use of data matching and AI tools is growing fast.
• More returns are being flagged, not just from errors, but from statistical anomalies or random selection.
• In the past year alone, over 50% of Audit Shield claims in NZ were for GST verification, with another 30% for income tax returns

Even something as simple as a new claim, a business restructure, or industry-wide targeting could put your return on the radar.

What Does Audit Shield Cover?

If you’re signed up and IRD launches a review, Audit Shield covers:

• Our fees to prepare responses and work with IR
• External specialists if required (e.g. legal, tax experts)
• Enquiries, investigations, and audits
• Returns across income tax, GST, PAYE, FBT, RWT and more
• All past lodged returns (even if we didn’t prepare them)

And if you’re in business or self-employed, the cost of the policy is tax deductible

What IRD Audit Help Really Costs Without It

Let’s say you get selected for a GST review.
Even if it turns out to be nothing, our team may still need to:

• Review your records
• Prepare documentation
• Liaise with IRD on your behalf
• Respond to follow-up queries

What starts as a “quick check” from IRD can turn into hundreds (or even thousands) in accounting time. Audit Shield means you’re not paying out of pocket just to prove you’ve done everything right

Who Is It For?

Audit Shield is available for:

• Sole traders
• Salary & wage earners
• Small to large businesses (up to $100M turnover)

If you file tax returns, claim expenses, operate a business, or earn self-employed income, you’re eligible.

5 Quick Reasons to Consider It

• Anyone can be targeted, even if your returns are accurate.
• Covers all professional fees related to IRD audit activity.
• Includes past returns, not just the current year.
• Tax deductible if you’re in business or self-employed.
• Peace of mind, no surprise accounting bills.

Ready to protect yourself from surprise IRD costs?

Joining Audit Shield is simple we’ll get you set up quickly so you can stay focused on your mahi, not the paperwork.

📞 09 378 9207
📩 info@weaccounting.co.nz

Ask us today about getting covered. Peace of mind is just one step away.