Tax Audit Myths
An audit is arguably the most dreaded outcome of the tax filing process, and the situation carries with it some unsettling mystique. The popular perception has the IRS showing up on your doorstep, or your place of business and randomly seizing the bulk of your personal assets. However, experts say, audits contrast greatly from the myths.
Audits are something most people should not be afraid of. A lot of times the government doesn’t want to do these audits.
In fact, one of the most enduring tax audit myths holds that an audit is a common occurrence. The experts generally agree that the IRS would rather not have to audit. One reason is because of the resources required to conduct an audit, and the negative audits generate.
Fact of the matter is the IRS audits only a small percentage of filed returns. Nevertheless, myths about who or who does not get audited, and why, run the gamut.
Myth: Be very afraid of an audit
One looming myth suggests the audit process is something one should panic about and feared desperately. The truth is that most people generally only need to respond to a few IRS questions. Typically, you’ll need to send information or a check for the additional money and that’s, that.
Myth: Professionally filed returns are audit-proof
Paying a tax preparation company will not shield you from an audit. Competition among tax preparation companies is fierce. The most effective way for these places to compete is to claim to get you the biggest refund.
If you or your business has been audited and you require representation, you can rely on Consulting Services Tax and Accounting to provide the expertise with your tax audit.