IRS Tax Audits myths debunked by Law Offices of Nick Nemeth
  • July 17, 2017
  • admin
  • 0

You receive a letter that reads IRS on the cover. There is instantly a feeling that the IRS is to audit you and seize your property. Not exactly! IRS tax audits, in contrast to common notion, are neither commonplace nor as dreadful as you may think. In fact, most taxpayers do not really have to fear from IRS tax audits, as the IRS audits only close to one percent of tax returns every year. Even when the IRS is conducting an audit, many times the purpose is to simply verify a few income details. You can always call The Law Offices of Nick Nemeth to get tips on how to survive a tax audit.

In this blog post, we debunk five myths related to IRS tax audits. Let’s get started.

1. Filing tax returns at the end of year increases the chance of tax audits

The IRS does not consider elements such as the date on which a taxpayer filed their tax return when deciding to audit them. IRS audits, in fact, usually start from July. So, even if you used an extension to file your tax returns, that does not trigger the IRS to audit you. Filing an extension can, in fact, help you avoid a tax audit, by providing you with more time to correctly prepare your tax returns.

2. The IRS does not audit taxpayers with moderate income

While rich taxpayers usually have more chances of facing IRS tax audits, reports show that the IRS also audits taxpayers with low to moderate income. Data reveals that there has been an increase in the number of audits for middle class people. According to Time, even if you earn less than $2,00,000 a year, you have a 26 percent risk of getting audited over a period of 30 years.

3. Taxpayers who file for tax credits and deductions have a higher chance of facing tax audits

False. Claiming and using deductions such as education credits does not mean the IRS will audit you, unless the central tax authority finds some unusual claims, for instance, charitable deductions that exceed your income. Many people fear that a home office deduction increases the chance of an audit, which is untrue. Any long list of deductions does not trigger an IRS audit unless the IRS finds something unusual. If you find yourself confused, call us and schedule a free, no obligation consultation.


4. E-filing increases the risk of audits

The IRS, in fact, encourages taxpayers to e-file their tax returns, as taxes filed in this way have been found to be 20 times more accurate than tax returns filed on paper. The fact that 90 percent of people e-file their tax returns these days proves that e-filing has no relation with increasing the risk of tax audits.

5. Amending tax returns may trigger an audit

Although the IRS will screen the information any time you amend a tax return, it does not call for an audit. In fact, correcting the mistakes on your tax returns by filing another return can prevent you from the possibility of penalty or interests. The problem may arise if you do not present a correct picture of your income and taxes to the IRS. So, do not be afraid, and when you need to amend a tax return, do take the step.


The IRS has the right to audit any taxpayer they want, but this does not state that an audit would lead to levy on your assets. It is true that if you owe the IRS, they will take certain steps to get their money, however, audits don’t just happen overnight. Even if the IRS decides to audit, you have certain rights to make sure they treat you fairly. The tax lawyers at The Law Offices of Nick Nemeth in DFW can explain your rights and help when it comes to surviving an IRS tax audit. To schedule an appointment, simply call (972) 426-2553. You can also fill out our Free Tax Analysis form and we will get in touch with you right away.

Please follow and like us:

What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
Quick Inquiry


    Enter the text you see above