If you’ve received an IRS audit notice, it can feel like the beginning of a stressful journey. However, it’s important to understand that an audit isn’t the end of the world. Unfortunately, many people are misinformed about what an IRS tax audit really entails. These misconceptions can cause unnecessary fear and confusion. As a veteran-owned law firm with decades of experience handling IRS issues, we’ve seen many common tax law myths that can mislead individuals. Our Bethesda, MD tax lawyer can clear up some of the most widespread misconceptions about IRS tax audits and explain why hiring our team could make all the difference.
An Audit Means You’re Guilty Of Tax Evasion
One of the most common misconceptions about IRS audits is that they’re a sign of guilt. Many people assume that if they’re being audited, it means the IRS believes they’ve committed tax fraud or evasion. The truth is, being audited doesn’t automatically imply wrongdoing. The IRS audits individuals for a variety of reasons, including random selection, discrepancies in your tax return, or high deduction claims.
In fact, the IRS audits millions of returns every year, and most of those individuals are not involved in any illegal activity. Audits are simply a way for the IRS to verify the accuracy of the information on your tax return. So, while an audit can be nerve-wracking, it’s important to stay calm and understand that it doesn’t necessarily mean you’ve done anything wrong.
You Can’t Fight An IRS Audit Outcome
Another myth is that once the IRS audits your return and determines the outcome, you have no recourse. This simply isn’t true. If you disagree with the results of an audit, you have the right to appeal. The IRS offers a formal process known as the Collection Due Process (CDP) hearing, where you can challenge the findings and present your case.
If you feel that the IRS auditor has made an error or if new evidence has come to light, you can ask for the audit to be reconsidered. Our skilled tax attorney can help you handle the appeals process, so that your rights are protected and that you have the best chance of success in resolving the dispute.
Audits Only Happen To High-Income Earners
While it’s true that high-income earners are more likely to be audited, audits aren’t exclusively reserved for wealthy individuals. The IRS audits people from all walks of life, including middle-class and even low-income earners. Certain red flags, such as significant deductions or discrepancies in reported income, can trigger an audit, regardless of your income level.
Additionally, advances in technology have made it easier for the IRS to spot discrepancies in tax returns, meaning that even small mistakes could lead to an audit. This is why it’s critical to file accurate returns and keep thorough records, no matter your income bracket.
IRS Audits Are Always Expensive And Time-Consuming
Another common tax law myth is that many people believe that an IRS audit will drag on for months and cost a fortune in legal fees. While audits can be time-consuming, they don’t have to be drawn-out or financially draining if you’re properly prepared. The key is to have a clear understanding of what the IRS is looking for and to respond quickly and thoroughly to any requests for information.
Having our lawyers by your side can significantly speed up the process. We’ve helped countless clients resolve audits efficiently, minimizing the time and expense involved. We can help gather the necessary documentation and present your case clearly so that the audit doesn’t spiral into a lengthy ordeal.
You Don’t Need A Lawyer For An Audit
Some people assume that they can handle an IRS tax audit without legal assistance, thinking that it’s simply a matter of providing documents and answering questions. However, managing an audit without professional help can be risky. An audit can quickly become complicated, especially if the IRS asks for additional information or decides to dig deeper into certain aspects of your tax return.
Our tax law firm can act as your advocate, so that you don’t inadvertently make statements that could harm your case. We can help you prepare for the audit, advise you on the best course of action, and represent you throughout the process. Our goal is to protect your rights and minimize any penalties or additional taxes you might owe.
The IRS Will Always Win In An Audit
Many taxpayers believe that the IRS has all the power and that there’s no way to contest their decisions. While the IRS does have significant authority, they are required to follow specific rules and procedures during audits. If you believe the IRS has made an error, you have the right to challenge it. In fact, many individuals successfully resolve their audits and reduce the amount of taxes owed.
Our responsibility as tax lawyers is to level the playing field and make sure the IRS follows the proper process. We’ll help you understand the full scope of the audit, identify any issues, and work toward the best possible outcome. Whether it’s negotiating a settlement or appealing the findings, we are here to defend your rights.
Protecting Your Rights During An IRS Audit
The misconceptions surrounding IRS tax audits can make the process seem much scarier than it really is. While audits can be stressful, they don’t have to lead to financial ruin or legal trouble. By understanding the truth about audits and getting professional help, you can defend your rights and reach a fair resolution. If you’re facing an IRS audit or need help with any tax-related issue, don’t hesitate to reach out to Crepeau Mourges. Our founding partners Brandon N. Mourges and Brian J. Crepeau will guide you through the process and help you avoid common tax law myths. Together, we can protect your financial future. Contact our office now to schedule a free case review and take the first step toward resolving your tax matters efficiently.
