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IRS Tax Auditing Services Facts That Are Actually Myths!

Author: Ramsay Bolton
by Ramsay Bolton
Posted: Aug 10, 2019

Tax filing is something that is the most difficult thing in all of your adulthood life. Just hearing the word tax audit makes everyone so afraid. But there are a lot of misconceptions about it that people think are true. To understand what is true and what isn’t, let’s get back the basics.

What is a Tax Audit?

It is basically when the Internal Revenue Service (IRS) decide to look at all your tax returns to verify that you are being truthful with your income. This is to ensure that the tax deductions are accurate. It is usually done when something seems suspicious about a business or any person.

Here are the common misconceptions regarding it.

Audits Being Common

People think that these audits are very normal in everyday life. They are always afraid that they will have to deal with this suddenly. But in fact, it is not that common. You would rarely see someone from the office of IRS Tax Auditing Services in Washington DCat your doorstep. Experts say that people working for the IRS usually prefer not having these audits. This is because it takes up a lot of resources and time. Moreover, the government tries to avoid it because excessive audits don’t look good for the IRS.

Audits Will Change Your Life

Many believe that just a simple paper from the IRS should be something to worry about. In reality, it is nothing more than a mere formality. Often, the government just wants to confirm their financial records with yours. You have to answer a couple of questions they ask you and that is it most of the time. Experts say that in many cases the problem just arises from simple mistakes the person has made. The IRS agent is just there to clarify the inconsistencies in the financial records that they have of you. It is not something you should be afraid of unless you are a part of a criminal underworld.

If a Professional Filed Your Tax Returns, There Is No Chance of An Audit

A lot of the business owners tend to believe that if they hired an accountant to do their tax returns, they have nothing to worry about. Though, experts say that you cannot always trust the accountants offering Professional Tax Services. They are capable of making a lot of mistakes and making you liable for an audit by the state. To avoid this, make sure you are hiring someone you can rely on.

Low Income Recipients Don’t Receive Audits

The IRS can do an audit on anyone they think is suspicious. That power lies to them. So, the financial income someone is receiving does not make anyone safe from an audit. Essentially, anyone can get one if the state believes they should.

Audits Are Quick

The IRS cannot do a quick audit because it is simply not allowed. They have to do thorough research of all your financial records. So, if an audit is indeed going to occur, then it will happen about two years after the filing is done.

About the Author

Tom Dexter is a professional financial planner who loves to write about accounting.

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Author: Ramsay Bolton

Ramsay Bolton

Member since: Apr 10, 2019
Published articles: 4

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