Have you ever trapped into any IRS audit? If not, you must have heard about various stories related to tax audit and the working procedures of the tax authority. These stories are full of the experience of the taxpayers however; they also tell you few things that didn’t even happen and are not ethical while dealing with the IRS or filing tax returns. One of the biggest myths among the taxpayers is that hiring a tax attorney is not mandatory until you owe hefty amount to the IRS or facing some tax issue.
No matter you are preparing taxes or received a notice for audit from the IRS, hiring a tax attorney is always recommendable. In case of an audit hiring tax attorney is necessary because only expert tax professional can tackle the complicated questions of the IRS agents. Moreover, if you don’t want to get under the spotlight of the IRS, you should employ the tax professional who can prepare your taxes so that no errors can be made in filing tax returns. Tax law keep on changing, therefore for an ordinary taxpayer keeping up with the amendment is quite tough. Therefore, you should consider hiring a tax attorney who will have thorough knowledge abut the IRS relief, tax credit options and tax deductions.
Another myth that helps numerous taxpayers to get rid of the scare of the IRS is that you can file a tax extension and IRS will not take any aggressive steps to collect money from you. However, it is just a fiction not a fact! There is difference between tax relief and tax extension. In the process of tax extension, you are just getting some more time to experience which would ultimately happen. You just have few days to prepare for it. In other words, IRS is not giving you time to pay your taxes but giving you time to file them. Many taxpayers also think that if you didn’t have job or money to pay the taxes, you can leave the duty of paying taxes. However, you cannot give excuse to the IRS that you didn’t have that’s why you’re not paying or you’ve paid the taxes. They are smarter than you and are authorized to garnish your wages put lien on your property, car and other valuable assets. So, you should try to pay taxes in time so that you can enjoy the comfort of your luxurious car and home without any hindrance.
Do you know the process of picking taxpayers for the tax audit by the IRS? Most of the people will answer it in yes as according to them IRS pick names for tax audit based on the time of filing. However, it is just a myth. In realty, you will be selected for the audit if you made errors in your filing or try to play with the IRS to save money. But IRS’ systems are programmed in such a manner that even slightest calculation error will be identified by them. There are several myths created by the taxpayers related to tax filing, if you don’t want to fail in audit or in filing of tax return, clear your concepts and stay away from any kind of myths.