Tax Audit in Edison, New Jersey

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Tax Audit Lawyers in Edison

A "tax audit" is a procedure in Edison, New Jersey where the tax authorities investigate a taxpayer's (whether the taxpayer is a person or corporation) filings when it looks like there's some kind of discrepancy. However, many state and federal tax audits are the result of random selection, when the authorities don't necessarily think that a taxpayer has deliberately evaded their taxes.

The actual procedure involved in a tax audit in Edison, New Jersey is typically 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 important 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 truly being audited.

Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place stated in the letter, and subsequent communications with the auditor. The auditor will tell you what documents and records you need to bring to the meeting. They will then ask you some questions to clear up whatever discrepancy they found in your tax return.

Reasons For a Tax Audit in Edison, New Jersey

There are plenty of reasons why New Jersey's government, or the federal government, might conduct a tax audit.

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.

However if the IRS or other tax agency suspects actual wrongdoing by an Edison, New Jersey taxpayer, that's a different matter. There are many different reasons why a government might decide 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 know where the money to buy all those things came from, and why it hasn't been declared as taxable income.

Another typical reason for tax audits in Edison, New Jersey is when a taxpayer claims a large number of deductions. A deduction is simply a legally-permitted 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 Edison, New Jersey Tax Lawyer Help?

If you find yourself on the business end of a tax audit in Edison, New Jersey, and you are sure that you have reported all of your income, and not claimed any invalid deductions, chances are you were just chosen at random for an audit, and you probably don't have any cause for concern, other than the inconvenience that an audit represents. If you are found to owe any back taxes, and your failure to pay in the past was the result of an honest mistake, you'll likely be afforded a chance to pay any taxes you owe from past years, with the possible addition of interest.

However, there are some tax audits where the underlying facts are much more confusing than a simple misunderstanding. In these cases, a good tax attorney in Edison, New Jersey may be necessary to ensure that the process is as painless as it can possibly be.

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Life in Edison

Edison, also known as "Edison Township," is in Middlesex County, New Jersey. Edison was incorporated as Raritan Township prior to becoming Edison Township.

In 2006, Money Magazine ranked Edison the twenty-eighth most livable small city in the U.S. Two years later, this rank fell to thirty-five. In 2009, U.S. News and World Report ranked the city as one of "America's 10 Best Places to Grow Up." U.S. News and World Report uses factors such as low crime, a strong school system, greenery, and recreational activities.

With all of Edison's distinctions, naturally it is home to a variety of professionals, including attorneys. Many attorneys practice law in Edison and are able to aid residents and local businesses with their legal needs.

Past and present famous residents include David Bryan, Al Chez, Tom Dwan, Patrick McDonnell, Brittany Murphy, Susan Sarandon, Mike Vallely, Darrin Winston, and Jeremy Zuttah.

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