Tax Audit Denver
Did You Receive a Tax Audit Notification to Your Denver, CO Residence?
Simply receiving an IRS notification can give one a sickening feeling. However, receiving a tax audit notification is even more unnerving. It can cause some Denver taxpayers to have a bout of anxiety.
Once the initial shock subsides and you can refocus mentally and take a moment to call Tax Relief System’s Denver team of tax professionals. We are a team of tax audit experts committed to helping Denver taxpayers make it through the audit with relative ease. You can trust you will be in good hands. (424)264-5854
Common Tax Audit Myths – Denver, CO
For the majority of US taxpayers residing in Denver, the notification of a tax audit brings an upswell of panic. Panic and anxiety are normal but doing nothing and ignoring it is not an option. Myths are floating around meant to instill fear. The myths are beneficial, to the IRS, for either keep you from being untruthful on your tax return or tend to make you quickly resolve the issue in their favor. The IRS is looking for an easy win and to collect monies they deem owed.
Myth 1: Being afraid of an audit – the majority of audits are correspondence audits. These audits are clarification questions that can easily be cleared up. Sometimes, these questions benefit you because of income you forgot which also had a loss, thus your refund is larger.
Myth 2: Professionally filed tax returns are audit-proof.
Myth 3: Low to moderate incomes do not get audited.
Myth 4: Tax returns with certain deductions or credits increase the chance of an audit – There is not a correlation between deductions/credits and audit chances.
Myth 5: Audits are conducted immediately – the statute of limitations is three years. The most common timeframe for an audit is the later portion of the three years.
There are a million audits a year. That is approximately 1% of all annual tax returns. Remember, the IRS is not going to come to take all your money. They are required to follow a long process and you have a lot of rights as a taxpayer. If you owe money, they will eventually get it. The good news is as long as you talk to them, you do not have to fear that something is going to happen to you, and it gets out of control.
Three Types of Tax Audits Denver Taxpayers Can Face
If you are being tax audited, then the level of severity of the three types of audits you will face. Most audits, in Denver, are not profoundly serious, and three-quarters of those are completed through mail correspondence.
Correspondence (Mail) Audit – This type of audit is the most common. Routine errors from incorrect math or missing paperwork are the majority of the reason for audits handled through correspondence.
Office Examination Audit – An office examination is scheduled at a local Denver IRS branch where they will normally try to find out if you reported all of your income and that deductions are legitimate.
Field Audit – A field audit is the most extensive of the three. An IRS agent will pay a visit to your home, business, or accountant’s office to examine records and files to confirm that your tax return information is correct.
A Tax Relief System audit expert can assist in any of the three types to make sure your answering questions correctly and to protect your rights. Our Denver area tax professionals are versed in taxpayer rights and procedures. Do go it alone.
The term audit can be scary and nerve-rattling. Make the call to our Denver team and get the trusted team on your side.
Tax Relief Systems is ready to assist in all things tax-related even audits. We are your Denver tax professionals.
Contact us directly at (424)264-5854 or complete our secure online form.