Tax Audit in Farmington Hills, Michigan

Find the right Tax Audit attorney in Farmington Hills, MI

Tax Audit Lawyers in Farmington Hills

In Farmington Hills, Michigan, 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. Usually, they do this because there is something suspicious in the tax return. State and federal tax authorities also do a some number of random audits each year, without necessarily suspecting that an individual auditee has done anything wrong.

The actual process involved in a tax audit in Farmington Hills, Michigan is usually 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 critical 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 actually being audited.

After confirming that the letter informing you of your audit is authentic, there are several 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 issues 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 Farmington Hills, Michigan

There are various different reasons why the federal government, or the tax authorities of Michigan might decide that a tax audit is warranted in your case.

As considered earlier, tax audits can be conducted at random. Obviously, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a significant 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 definately have nothing to worry about.

On the other hand, some taxpayers in Farmington Hills, Michigan are audited for a specific reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very frequent reason for a tax audit. For example, if you claim on your tax return that you make ,000 per year, and, in the same year, buy an expensive luxury item, the tax authorities will wonder where you got that extra money, and why you're not paying taxes on it.

Another common reason for tax audits in Farmington Hills, Michigan is when a taxpayer claims a large number of deductions. A deduction is just a legally-allowed subtraction from a person's taxable income. For example, charitable donations can be deducted from one's income in the full amount of the donation. Nonetheless, 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 Farmington Hills, Michigan Tax Lawyer Help?

If you find yourself being audited in Farmington Hills, Michigan, and are sure that you have done everything right in preparing your taxes, then the audit will likely be over rapidly, 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 likely 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, in more confusing cases, chances are you would be well-served by a tax lawyer in Farmington Hills, Michigan, to ensure that your tax audit goes smoothly.

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Life in Farmington Hills

Farmington Hills is located in southeastern Michigan. It is hte largest city in Michigan's Oakland County. Per the 2010 census, the population is around 79.740 people. Farmington Hills is known as an upscale area, and is also located very near the affluent area of Ann Arbor.

The top employers include Botsford Hospital, the school district, Bosch, Quicken Loans, Gale, TD Auto Finance, Aditya Birla Minacs, TRW Automotive Electronics, ACO Hardware, and Nissan Technical Center North America.

Farmington Hills is also home to some attorneys who residents often turn to for thier legal needs. Ann Arbor is also home to many law firms that practice in almost all areas of law, that train their attorneys to always litigate and act in the best interest of their clients.

Some famous residents include Steve Ballmer, Keith Benson, Elizabeth Berkley, Cam Fowler, Al Jean, Bill Joy, Drew Stanton, Fred Toucher, and Fred M. Warner.

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