Common Myths About Audits

Navigating an IRS audit can feel intimidating, but the truth is much simpler—and far less scary—than most people think. When you understand what the IRS actually looks for and how audits really work, you can move forward with a lot more confidence.

Below, we’re breaking down some of the most common audit myths and what’s true behind them.

Myth 1: “Only wealthy people get audited.”

Reality: Higher-income taxpayers do experience more audits, but the IRS reviews returns from all income levels.

Some audits are targeted based on specific triggers, while others are chosen randomly through computer screenings. Being a “regular” taxpayer doesn’t automatically keep you off the IRS’s radar.

Myth 2: “If I file electronically, I won’t get audited.”

Reality: E-filing helps reduce mistakes, which can lower audit risk but it doesn’t prevent one.

The IRS uses sophisticated matching systems to scan for inconsistencies between your return and the data they already have (W-2s, 1099s, etc.).

Whether you file electronically or on paper, discrepancies can still flag your return for review.

Myth 3: “Audits always take forever and require in-person meetings.”

Reality: Most audits are handled by mail and are resolved quickly.

Correspondence audits are the IRS’s most common type of review. They usually focus on a single issue—like income reporting, dependents, or deductions—and often wrap up with just a few letters back and forth.

Face-to-face audits still happen, but they’re far less common and typically involve more complex financial situations.

Myth 4: “I can probably just handle an audit myself.”

Reality: Simple notices can be manageable, but audits involving income, deductions, business activity, rental property, or bookkeeping often benefit from professional support.

If the IRS requests documents you’re not sure how to organize—or if you’re simply overwhelmed—it helps to have a team who deals with audits routinely.

AdminBooks provides up to 10 hours of audit support, including correspondence, documentation prep, and representation under a Power of Attorney. You don’t have to face the IRS alone.

Myth 5: “The IRS is out to get me.”

Reality: The IRS’s primary goal is compliance, not punishment.

Yes, audits can feel stressful, but the IRS isn’t trying to “catch” you—they’re verifying accuracy.

Having a knowledgeable professional in your corner helps ensure everything is communicated clearly and any issues are resolved efficiently.

Myth 6: “If I amend my return, it will trigger an audit.”

Reality: Amending a return does not automatically trigger an audit.

In fact, correcting errors can prevent future problems by aligning your return with IRS records before the discrepancy becomes an issue.

Being proactive is typically a good thing.

Myth 7: “All audits end with me owing money.”

Reality: Not true.

Some audits result in no change at all. Others reveal that the taxpayer actually overpaid and is due a refund.

An audit is simply the IRS checking accuracy—it doesn’t automatically mean bad news.

What’s Changed Recently With IRS Audits?

Originally, the Inflation Reduction Act allocated $45 billion specifically for IRS enforcement. While Congress later reallocated part of that funding, the IRS is still moving forward with expanded compliance efforts through 2030.

This includes:

• More focus on high-income individuals
• Increased scrutiny of business deductions
• Automated matching for inconsistencies
• Continued use of AI-driven audit selection tools

For everyday taxpayers and small businesses, this mainly means more notices, requests for clarification, and document reviews—not necessarily full audits.

How AdminBooks Supports You During an Audit

If you’re a current AdminBooks client and you’ve purchased Audit Defense for your tax year, here’s what you can count on:

• Representation: We represent you before federal and state agencies under a Power of Attorney.
• Issue Resolution: We work diligently to help resolve any concerns raised by the IRS or FTB.
• Document Preparation: We prepare the letters, responses, and required documentation so you don’t have to.
• Audit Support: You get audit assistance without unexpected hourly bills.

(Please note: to use Audit Defense, you must be a current AdminBooks client at the time of the audit.)

For more information on how AdminBooks can protect you during audits, contact us at [email protected] or 408-782-9640. Visit our Audit Defense Services page for details.