Tax Audit Torrance
Did You Receive a Notification of a Tax Audit to Your Torrance, CA Residence?
The receiving a notification from the IRS can have a sickening feeling. However, receiving a notification, in the mailbox of your Torrance home, stating you have been selected for an IRS audit is not occasion for celebration, it is exactly the opposite.
Once the initial shock wears off and you mentally refocus, take a moment to pick up the phone and call Tax Relief System’s Torrance team of tax professionals. We are a team of tax audit experts dedicated to helping you smoothly make it through the audit. You will be in good hands. (424)264-5854
Common Tax Audit Myths – Torrance, CA
For most US taxpayers residing in Torrance, the notification of a tax audit notification delivers an upswelling of panic. Panicking and being anxious is normal, but doing nothing is not an option. This is due to several myths floating around meant to instill fear. For the IRS, the myths are beneficial in that they either keep you from being untruthful on your tax return, which is usually out of fear, or tend to make you quickly resolve the issue in their favor. The IRS is looking for an easy win and to clear a discrepancy.
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. Keep in mind, the IRS is not going to come 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 Torrance 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 Torrance, 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 Torrance 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 Torrance 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 Torrance 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 Torrance tax professionals.
Contact us directly at (424)264-5854 or complete our secure online form.