Tax Audit Lawyers in San Mateo County
A "tax audit" in California 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 random audits, where they audit taxpayers at random, without necessarily suspecting them of any wrongdoing.
The process of a San Mateo County, California tax audit is typically 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 pursue 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 made sure that your audit is indeed real, you can do a few things to get ready for it. Most vitally, 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 San Mateo County, California
There are plenty of reasons why California's government, or the federal government, might conduct a tax audit.
A taxpayer can be chosen for an audit at random, even if the tax authorities don't suspect any wrongdoing. The idea behind these random audits is to keep taxpayers on their toes. So, if you are audited for this reason, and know that you've done everything properly in filing your taxes, you will probably be fine.
But, some San Mateo County, California tax audits occur for a particular reason. This is typically because the IRS or your local tax authority suspects that you have not reported all of your income on your tax return. For example, suppose that, last year, you bought an expensive new luxury car. But say you only claimed ,000 in total income that year. As you might imagine, the IRS is going to be quite interested in finding out where the money for that car came from, and, if you have enough money to buy it, why you aren't paying taxes on that money.
It is also common to be audited in San Mateo County, 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 San Mateo County, California Tax Lawyer Help?
If you are audited in San Mateo County, California, and believe that you have done everything right in collecting 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 - typicallyy just an order to pay any back taxes you owe, plus interest.
But, there are some tax audits that are far more confusing 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 San Mateo County, California tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.