Tax Audit in Goodyear, Arizona
A "tax audit" in Arizona 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 procedure of being audited in Goodyear, Arizona is typically 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.
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 Goodyear, Arizona
There are various different reasons why the federal government, or the tax authorities of Arizona might decide that a tax audit is warranted in your case.
As considered earlier, tax audits can be conducted at random. Apparently, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a substantial 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.
Nonetheless, some people in Goodyear, Arizona are audited because the government suspects that they are underreporting their income. For instance, if you report that you only make $20,000 per year, and then go out and buy an expensive sports car, the IRS and state tax authorities are going to want to discover where the money to buy that car came from.
Claiming an unusually-high number of deductions is another prevalent reason for tax audits in Goodyear, Arizona. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a wide number of deductions that your tax liability has been reduced to almost nothing, the IRS will probably want to make sure that all of these deductions are legitimate.
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How Can A Goodyear, Arizona Tax Lawyer Help?
If you end up being tax audited, and you believe that you have not engaged in any wrongdoing, it's likely that you've been chosen randomly for an audit in Goodyear, Arizona. If this is the case, you shouldn't be worried. If you are found to have made a mistake on a past tax return, and paid less than you owed, you'll likely just be made to pay the balance due, plus a slight bit of interest, without incurring any additional penalties.
Nonetheless, if the situation is more difficult, you may need to hire a Goodyear, Arizona tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.
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Life in GoodyearIn 1917, Goodyear Tire and Rubbery Company bought 16,000 acres of land to cultivate cotton for tire threads. This land came to be known as Goodyear. Goodyear is home to approximately 65,275 people and is located in Maricopa County, Arizona.
Besides the famous tire company, Goodyear is also known because the Cleveland Indians baseball team moved their spring training facility to Goodyear from Florida. Goodyear then funded a spring training complex, worth $33 million, for the Cleveland Indians and Cincinnati Reds. The ballpark seats about 10,000 people and is one of the popular attractions to see.
Goodyear is home to many small to mid-size law firms with many capable attorneys able to handle any and all legal inquiries. Therefore, Goodyear residents can stay assured that their legal needs will be well-handled by the legal force in Goodyear, Arizona.