Tax Audit Lawyers in Tustin
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 unexpected audits, where they audit taxpayers at random, without necessarily suspecting them of any wrongdoing.
The process of a Tustin, 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. Nonetheless, 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 made sure that your audit is indeed real, you can do a few things to get prepared for it. Most notably, you should collect all of the documents that the auditor has asked for, as well as any further 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 Tustin, California
Tax Audits in California can happen for a wide variety of various reasons.
As considered earlier, an audit might happen due to a taxpayer being randomly selected. If this happens to you, and you have been honest on your tax returns, it's unlikely that you'll have much to worry about.
On the other hand, there are also specific reasons why the tax authorities in Tustin, California might want to conduct a tax audit. The most common reason for a tax audit is suspicion that a taxpayer has not reported all of the income they earned in a particular year. This suspicion often arises when a taxpayer buys a large number of expensive luxury items, but only claims a small amount of income on their tax return. Obviously, the tax man will be very interested in learning where someone who is claiming a minimum-wage level income on their taxes got the money to buy a sports car.
Claiming an unusually-high number of deductions is another common reason for tax audits in Tustin, California. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a large 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.
How Can A Tustin, California Tax Lawyer Help?
If you are audited in Tustin, California, and believe that you have done everything right in preparing and filing your tax return, you likely don't have much to worry about. If there is anything wrong with your tax return, it was likely the result of an honest mistake, which will result in light penalties - usuallyy 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 significant issues. If you find yourself facing allegations from the IRS of serious wrongdoing, and believe yourself to be innocent, you should seek the advice of a Tustin, California tax attorney immediately.