Tax Audit in Brea, California

Find the right Tax Audit attorney in Brea, CA

Tax Audit Lawyers in Brea

A "tax audit" in California is the process by which the relevant 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, usually 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 process of a Brea, California tax audit is usually pretty straightforward. If and when you are faced with a tax audit, you'll receive a letter from the IRS, or its state equivalent, telling you that you're being audited. However, you should not assume that this letter is authentic, because con artists will sometimes send fake audit letters to squeeze money out of innocent taxpayers. You should seek independent confirmation of the letter's authenticity by searching the Internet for the name of the government agency in question, and contact them for more information.

Once you have confirmed that your audit is authentic, you will be required to meet the auditor at an agreed-upon time and place. The auditor will usually inform you about what documents and other evidence you need to take to the meeting. At the meeting, they will ask you a long series of questions about your taxes, to clear up the thing they're uncertain about.

Reasons For a Tax Audit in Brea, California

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

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 honest and diligent in preparing 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 a Brea, California taxpayer, that's a different matter. There are several different reasons why a government might decide to audit a taxpayer. The most common one is suspicion that they have underreported their income. If a taxpayer buys a large 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.

It is also common to be audited in Brea, California if you claim a massive number of deductions. A tax deduction is simply a legal subtraction from one's taxable income. Several different expenses, including charitable donations, interest paid on mortgages, and others, are deductible from one's taxes. If you claim so many deductions that you have negated almost all of your tax liability, you can bet that the government is going to be suspicious.

How Can A Brea, California Tax Lawyer Help?

If you find yourself being audited in Brea, California, 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 complicated and serious than a tax return having a few more deductions than usual. If this is the situation you're in, you should contact a Brea, California tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.

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Life in Brea

Brea, California is a city in Orange County, California. Its population is slightly under 40,000 people. Brea is known for its warm climate, high standard of living, and low crime rates. In 2006, it was named by Sunset Magazine as one of the best suburbs to live in the Western United States.

Brea, California can trace its origins back to the late 1800s, when oil was discovered across much of Southern California. Brea became a boomtown as the oil industry moved in.

These days, the economy of Brea, California is largely dominated by banking, finance, retail, and other service-based industries. Many white-collar professionals, such as attorneys, live and work in Brea, California. Brea, California is the birthplace of Cruz Reynoso, a prominent civil rights lawyer, and the first Hispanic justice on the California Supreme Court.

There are many other lawyers in Brea, California who are not as famous as Mr. Reynoso, but who tirelessly advocate for their clients every day. If you need legal help, you could do a lot worse than finding a Brea, California lawyer.

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