Tax Audit in Ellicott City, Maryland

Find the right Tax Audit attorney in Ellicott City, MD

Tax Audit Lawyers in Ellicott City

In Ellicott City, Maryland, a "tax audit" is a procedure in which the IRS or local tax authorities conduct an investigation of a taxpayer's tax filings, looking at them in more detail than they ordinarily do. Normally, they do this because there is something suspicious in the tax return. State and federal tax authorities also do a certain number of random audits each year, without necessarily suspecting that an individual auditee has done anything wrong.

The actual procedure involved in a tax audit in Ellicott City, Maryland is normally fairly straightforward. If you hare chosen for an audit, you will receive a letter in the mail telling you as much. Before responding, it's crucial for you to make sure that the letter is authentic, because there are scammers who send fake audit letters to innocent victims, in an attempt to extort money out of them. You should search the Internet for the name of the organization that the letter claims to represent, and call them using the contact information on their website, and confirm that you are really being audited.

After confirming that the audit you're facing is really legitimate, there are a few things you can do to prepare. First, you should assemble all of the appropriate documents you have in your possession. This should include your tax return, W-2 forms, and records of any expenses that you claim as deductions. You should bring these documents, and any others that the auditor requests, to the meeting. At the meeting, the auditor will ask you a number of questions, which you should answer honestly and to the best of your knowledge.

Reasons For a Tax Audit in Ellicott City, Maryland

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

As discussed earlier, tax audits can be conducted at random. Evidently, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a considerable number of random audits each year, taxpayers are, in theory, discouraged from cheating on their taxes, because they know that they might be audited randomly. If you are chosen for a random audit, and have done everything right, you almost certainly have nothing to worry about.

However if the IRS or other tax agency suspects actual wrongdoing by an Ellicott City, Maryland taxpayer, that's a different matter. There are several different reasons why a government might decide to audit a taxpayer. The most frequent one is suspicion that they have underreported their income. If a taxpayer buys a massive number of expensive luxury items, but reports little or no income on their tax returns, the government will definitely want to know where the money to buy all those things came from, and why it hasn't been declared as taxable income.

Another frequent reason for tax audits in Ellicott City, Maryland is when a taxpayer claims a large number of deductions. A deduction is simply a legally-authorized subtraction from a person's taxable income. For instance, charitable donations can be deducted from one's income in the full amount of the donation. However, if a person claims a very large number of deductions, to the point that they claim little or no tax liability, the tax authorities are going to take a closer look.

How Can A Ellicott City, Maryland Tax Lawyer Help?

If you find yourself being audited in Ellicott City, Maryland, and are certain that you have done everything right in preparing your taxes, then the audit will probably be over quickly, with no penalties imposed. In cases like this, if anything is found to be wrong with your tax return, it is likely the result of an honest mistake, and the auditor will be aware of this, and will probably give you an opportunity to correct your mistake, without suffering any penalties, with the possible exception of being made to pay interest on any back taxes you owe.

But, there are some tax audits that are far more difficult and serious than a tax return having a few more deductions than usual. If this is the situation you're in, you should contact an Ellicott City, Maryland tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.

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Life in Ellicott City

Ellicott City, Maryland is an unincorporated community in Howard County. It has a population of approximately 57,000 people as of the 2000 Census Ellicott City, Maryland was founded in 1772, by a small group of Quaker missionaries. Chosen for its picturesque natural scenery and abundant natural resources (particularly lumber), the settlement quickly grew into a bustling community. Tourists are generally drawn to the area because of its beautiful natural scenery. However, Ellicott, Maryland is also home to a niche tourist industry: ghost hunting. It is considered by enthusiasts to be one of the most haunted places in the U.S. If you believe in that sort of thing, Ellicott City could be a delightful place to visit. Ellicott City is home to quite a few tourist attractions. In addition to hiking trails, it is home to The Enchanted Forest, an amusement park with a fantasy theme. It is also has a locale Shakespeare company, that regularly puts on productions of the bard's plays. Residents of Ellicott City, and the surrounding area, have access to a wide variety of competent attorneys. Ellicott City, Maryland lawyers are ready to handle just about any case that you are likely to face. Whatever legal issues you're dealing with, an Ellicott City, Maryland lawyer can help.

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