Tax Audit in Little Rock, Arkansas
A "tax audit" in Arkansas is the process by which the appropriate 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, normally 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 random audits, where they audit taxpayers at random, without necessarily suspecting them of any wrongdoing.
The procedure of being audited in Little Rock, Arkansas is normally pretty simple. If and when the tax authorities decide to audit you, they'll send you a letter in the mail detailing what's about to happen. If you receive such a letter, it's extremely important that you make sure it's authentic. Sometimes, scam artists will send fake audit notices to people, claiming that they owe the government money. They will then collect their "taxes" and disappear. You should do an internet search for the name of the tax authority that the letter claims to represent, and call them to verify that you are being audited.
Once you have made sure that your audit is indeed real, you can do a few things to get ready for it. Most importantly, you should gather all of the documents that the auditor has asked for, as well as any additional documents and evidence that you think might help clear up any confusion about your tax return. You should bring these to the meeting with the auditor, and truthfully (to the best of your knowledge) answer all of the questions that the auditor asks.
Reasons For a Tax Audit in Little Rock, Arkansas
Tax Audits in Arkansas can occur for a wide variety of different reasons.
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 straightforward and diligent in gathering your tax documents, it will probably be a quick, painless process, and you likely don't have anything to worry about.
On the other hand, some taxpayers in Little Rock, Arkansas are audited for a certain reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very common reason for a tax audit. For instance, if you claim on your tax return that you make $30,000 per year, and, in the same year, purchase an expensive luxury item, the tax authorities will wonder where you got that extra money, and why you're not paying taxes on it.
If you claim such a massive number of deductions that your tax liability is unusually low, you may well be subject to an audit in Little Rock, Arkansas. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Particular business expenses and charitable donations are frequent 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 relevant documentation to back them up.
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If you are audited in Little Rock, Arkansas, and believe that you have done everything right in gathering and filing your tax return, you probably don't have much to worry about. If there is anything wrong with your tax return, it was probably the result of an honest mistake, which will result in light penalties - normallyy just an order to pay any back taxes you owe, plus interest.
However, there are times when an audit is conducted to investigate far more serious issues. If you find yourself facing allegations from the IRS of serious wrongdoing, and believe yourself to be innocent, you should obtain the advice of a Little Rock, Arkansas tax attorney immediately.
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Life in Little RockLittle Rock is the largest city in the State of Arkansas by any measurement. The City of Little Rock is the most important center of government in Arkansas and acts as the state capital and seat of Pulaski County Government. Today, Little Rock is home to over 700,000 residents who live in the city's 36 diverse neighborhoods.
There are a lot of outstanding museums in Little Rock like the Arkansas Arts Center, William J. Clinton Presidential Center, MacArthur Museum of Arkansas Military History, and the hands-on Arkansas Museum of Discovery to name a few. Little Rock's Arkansas Arboretum is one of the most outstanding examples of native and exotic plans around. The Arkansas Art Center offers a museum school in addition to attractions like Van Gogh and Rembrandt pieces. The global hunger, poverty, and relief organization Heifer International operate their world headquarters from Little Rock.
Some prominent corporations and companies like Dillard's Department Stores, Windstream Communications, Acxiom, Rose Law Firm, and Metropolitan National Bank have headquarters in Little Rock. A number of hospital and renown research facilities make home in town. The largest of those include Blue Cross and Blue Shield, Baptist Health Medical Center, University of Arkansas for Medical Sciences (UAMS), and the Arkansas Children's Hospital. Other businesses that have major installations in Little Rock are L'Oreal Paris, Timex, Entergy, Raytheon, Siemens, Kroger, Dassault Falcon Jet, and AT&T Mobility.
I suppose it wasn't too shocking for residents when the Brookings Institution ranked Little Rock as the 7th best economy in the United States. It was second best in growth. Don't think rapid expansion has taken a negative toll on Little Rock. It's as gorgeous as ever and even was awarded the title of 2nd cleanest city in America by Forbes Magazine.