11 Sep Top 6 Myths About Tax Audits and the IRS
Most of us usually fear tax audits from the IRS. However, when you know the beast well, it becomes much less frightening!
With that in mind, we wanted to dispel the top myths people believe when it comes to the IRS and their tax audits.
1. Tax Audits Are Scary
Naturally, we have to start with the top myth of them all – the fact that many feel audits ought to be frightening.
However, the reality is much different. In most cases, the IRS will only want you to respond to a few questions. Yes, it sounds unbelievable that they can be this kind, but they can be very good to the taxpayer sometimes!
In most cases, audits will involve you telling them if their records of your taxes are right. If not, then there will usually only be a simple problem that needs to be resolved.
In essence, it will rarely be something alarming, so there’s no need for you to fear IRS tax audits.
2. E-filing Causes More Audits
Actually, the opposite is true. When you file electronically, there will always be fewer errors than doing it in the traditional sense. That’s because electronic filings eliminate many potential missteps a human can make.
3. Professionally Filed Returns Never Prompt an Audit
Well, unfortunately, nothing can keep you entirely safe from IRS audits. Not even returns done by a paid professional. Those professionals are still humans.
However, if you get help from a tax resolution specialist, then the likelihood of experiencing any problems with the IRS drops significantly.
4. The IRS Likes Doing In-Person Audits
Some people go as far as to say that perform in-person audits because they love seeing you scared! That’s simply ridiculous.
What’s more, around 70% of all tax audits are performed via mail. If the IRS requires a face-to-face meeting, they will schedule it at your convenience. Additionally, it won’t necessarily mean that the outcome will be bad for you.
In all honesty, most of the time, you will know if something terrible is about to happen well in advance because a lot of time and exchanges will pass before such an outcome.
5. The IRS Doesn’t Audit People with Low Incomes
The IRS audits everyone, period. If they have a cause for an audit, they will review you. They won’t be looking if you make enough money for them to be bothered.
However, this doesn’t mean that the chances for you to get a serious audit are high. On the contrary, they are still very low, as they are for most people. They’ll be even lower if you follow the rules!
6. Audits Are Always Done Immediately
Audits are rarely done immediately after filing. What’s more, they are mostly done two years later.
The IRS has a statute of limitations of three years, and it can be up to six years if there are substantial errors that require correction.
So there you have them, the top six myths about IRS tax audits. We hope that these explanations will make you feel safer from the IRS.
In the end, if you end up having troubles with the IRS, don’t hesitate to get in touch with us. We at Golden Tax Relief are here to protect you from the IRS with our vast knowledge of how they operate and how people can deal with their IRS issues.