Millions of Americans in Georgia and the rest of the United States are concerned about the risk of tax audits. However, there are several myths surrounding audits. While many filers may fear a sense of dread about being audited, only a fraction may actually be audited.
Among many common myths about audits, one of the biggest myths is that filers should be very afraid if they’re facing an audit. Many individuals are under the assumption that an audit is always an in-person process. However, the reality is that most tax audits are correspondence-based. The majority of people who receive an official letter from the IRS will most likely only have to respond to a few questions.
Another common audit myth is that people who have a lower to moderate incomes aren’t at as great of a risk of being audited. While the IRS conducts audits across the board, only a small percentage of filed returns trigger an audit.
Some tax filers avoid taking credits and deductions out of the fear of triggering an audit. By denying themselves certain tax advantages out of the unfounded fear of triggering an audit, these tax filers forfeit money that was entitled to them.
Even when people are audited, the IRS doesn’t just come take their money. Individuals who end up owing money to the government will eventually have to repay their debts, but the IRS is often willing to work with taxpayers to come up with realistic repayment plans. Tax filers who are facing audits should consider consulting with an experienced attorney. Taxpayers have rights that need to be protected, and a tax attorney may be able to assist with representing the interests and rights of taxpayers who are facing IRS audits.