Tax Audit in Colorado Springs, Colorado

Find the right Tax Audit attorney in Colorado Springs, CO

Tax Audit Lawyers in Colorado Springs

A "tax audit" in Colorado is the process by which the proper tax authorities (either the IRS, at the federal level, or its state equivalent) investigate a tax filing in more detail than they do for ordinary filings, typically because there appears to be a discrepancy, or some other suspicious item, in somebody's tax returns. However, the IRS (and state tax authorities) sometimes do rounds of unexpected audits, where they audit taxpayers at random, without necessarily suspecting them of any wrongdoing.

The process of a Colorado Springs, Colorado tax audit is typically pretty straightforward. If and when you are faced with a tax audit, you'll receive a letter from the IRS, or its state equivalent, telling you that you're being audited. Nonetheless, you should not assume that this letter is authentic, because con artists will sometimes send fake audit letters to squeeze money out of innocent taxpayers. You should pursue independent confirmation of the letter's authenticity by searching the Internet for the name of the government agency in question, and contact them for more information.

After confirming that the letter informing you of your audit is authentic, there are various things you can do to prepare for your meeting with the auditor. The initial thing you need to do is call them and arrange to meet at a time that's mutually convenient. You should bring any documents and records that the auditor requests, as well as any proof that you think might be helpful in answering the auditor's questions. The auditor will ask you any questions that he or she believes will clear up whatever concerns they have with your return. You should answer all of these questions truthfully, as it is illegal to lie to a tax auditor.

Reasons For a Tax Audit in Colorado Springs, Colorado

There are various reasons why the federal government, or the government of Colorado may want to audit a taxpayer.

As mentioned above, an audit can happen simply because a person was chosen for an audit at random. If you are randomly chosen for a tax audit, and you have been forthright and diligent in collecting your tax documents, it will probably be a quick, painless process, and you likely don't have anything to worry about.

Nonetheless if the IRS or other tax agency suspects actual wrongdoing by a Colorado Springs, Colorado taxpayer, that's a different matter. There are various different reasons why a government might determine to audit a taxpayer. The most typical one is suspicion that they have underreported their income. If a taxpayer buys a considerable number of expensive luxury items, but reports little or no income on their tax returns, the government will definitely want to discover where the money to buy all those things came from, and why it hasn't been declared as taxable income.

If you claim such a considerable number of deductions that your tax liability is unusually low, you may well be subject to an audit in Colorado Springs, Colorado. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Specific business expenses and charitable donations are customary sources of tax deductions. However, some people add invalid deductions to their tax returns to reduce their tax burden. If the IRS is suspicious about your deductions, you should make sure you have appropriate documentation to back them up.

How Can A Colorado Springs, Colorado Tax Lawyer Help?

If you experience an audit in Colorado Springs, Colorado, and believe that you have properly reported all of your income on your tax filings, it will probably go fine. And if there is anything wrong with your filings, it was likely the result of an honest mistake, and auditors are generally sensitive to this fact. In such cases, the penalty is typically light. It will probably be little more than a requirement that you pay back taxes and interest.

However, there are times when an audit is conducted to investigate far more significant issues. If you find yourself facing allegations from the IRS of serious wrongdoing, and believe yourself to be innocent, you should pursue the advice of a Colorado Springs, Colorado tax attorney immediately.

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Life in Colorado Springs

Colorado Springs is the seat of El Paso County and is known as Money Magazine's "best big city to live in" and Outside Magazine named it number one in their 2009 list of America's best cities. Peterson Air Force Base, Falcon Air Force Base, and the Air Force Space Command are all located in Colorado Springs and draw a number of U.S. Service men and women. In fact, the famed NORAD was based in to Cheyenne Mountain overlooking the city. The armed forces including Fort Carson, Peterson Air Force Base, the United States Air Force Academy, and Schriever Air Force Base employ over 20% of the city's population.

It may be obvious to you then, Colorado Springs is home to a number of defense industry professionals from aerospace and missile defense to communications and engineering. Beoing, L-3 Communications, and General Dynamics all have major installations in Colorado Springs alongside the likes of Northrop Grumman and Lockheed Martin. The high tech boom in Colorado Springs has ushered in companies like Verizon Business, Hewlett-Packard, Intel, and Agilent. The companies range from software design to computer chip manufacturing and testing.

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