Common Myths About Audits

Navigating an IRS audit can be a daunting prospect, but understanding the reality behind common myths can help demystify the process and reduce anxiety. Here are some prevalent myths and the truth behind them:

Myth 1: Only Wealthy Individuals Get Audited

Reality: While higher-income individuals and businesses are often scrutinized more closely, audits can happen to anyone. The IRS uses random selections and computer screenings, meaning taxpayers from all income levels are subject to audits.

Myth 2: Filing Electronically Will Prevent an Audit

Reality: Electronic filing can reduce errors and potentially lower audit risks, but it does not eliminate the possibility. The IRS uses sophisticated algorithms to flag discrepancies regardless of the filing method.

Myth 3: Audits Are Always Lengthy and Complicated

Reality: Many audits are resolved through correspondence and don’t require face-to-face meetings. However, complex cases can take longer to resolve, especially if significant issues are found.

Myth 4: You Can Handle an Audit Without Professional Help

Reality: While it’s possible to handle simple audits yourself, having professional representation can be crucial for complex cases. AdminBooks provides up to 10 hours of audit support, handling correspondence and document preparation to help achieve a satisfactory resolution.

Myth 5: The IRS is Out to Get You

Reality: The IRS's goal is to ensure compliance with tax laws, not to penalize taxpayers unduly. Working with professionals like AdminBooks can help clarify and resolve issues efficiently.

Myth 6: Amending a Return Will Trigger an Audit

Reality: Amending a return to correct errors does not automatically trigger an audit. In fact, it can sometimes prevent one by addressing discrepancies before the IRS notices them.

Myth 7: All Audits End in Owing More Money

Reality: Not all audits result in additional taxes owed. Sometimes, audits can even uncover errors that favor the taxpayer, potentially resulting in a refund.

How AdminBooks Helps

• Representation: We represent you before federal and state tax authorities under a power of attorney, ensuring your case is handled by experts.
• Issue Resolution: Our team works diligently to resolve any issues that arise during an audit or inquiry.
• Document Preparation: We manage all necessary correspondence and preparation of documents.
• Audit Support: We offer up to 10 hours of audit support, giving you the peace of mind to focus on your business.

Please note, to receive our audit defense services, you must be a current client of AdminBooks at the time of the audit.

For more information on how AdminBooks can protect you during audits, contact us at support@adminbooks.com or 408-782-9640. Visit our Audit Defense Services page for details.