You are Being Tax Audited by The IRS – Now What? – Memphis, TN
There is not a worse sickening feeling than receiving an IRS notice that your taxes are being audited. Receiving the notification is not the end of the world but is unnerving. It can cause some Memphis taxpayers to have serious anxiety. A tax audit notification, from the IRS, should be taken seriously but acted upon with the confidence you have help.
Once the initial shock dissipates and you can refocus mentally and take the important step and call Tax Relief System’s Memphis team of tax professionals. We are a team of tax audit professionals committed to assisting Memphis taxpayers to make it through the audit with relative ease and unscathed. You can trust you will be in good hands. (424)264-5854
Common Tax Audit Myths – Memphis, TN
For the majority of Memphis US taxpayers, the notification of a tax audit brings an upswell of panic. Panic and anxiety are common but panicking to the point that it causes action inaction and ignoring it is not an option.
There are Myths floating around the internet and society designed specifically to instill fear. For the IRS, the myths are advantageous to either keep you from being untruthful on your tax return or persuade you to move quickly to a resolution 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.
Every year, the IRS processes millions of audits, which is approximately 1% of all annual tax returns. Remember, the IRS is not immediately coming to take all your money, there is a process. The IRS is required to follow a long process and you have many rights as a US taxpayer. However, 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. With help, you have some control.
Three Types of Tax Audits Memphis Taxpayers Potentially Face
If you are being tax audited, then the level of severity of the three types of audits you will face. Most audits, in Memphis, 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 Memphis 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 Memphis area tax professionals are versed in taxpayer rights and procedures. Do not go it alone.
The term audit can be scary and nerve-rattling. Make the call to our Memphis 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 Memphis tax professionals.
Contact us directly at (424)264-5854 or complete our secure online form.