Tax Audit in Newark, Delaware

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Tax Audit Lawyers in Newark

A "tax audit" in Delaware 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 actual process involved in a tax audit in Newark, Delaware is usually fairly straightforward. If you hare chosen for an audit, you will receive a letter in the mail telling you as much. Before responding, it's essential for you to make sure that the letter is authentic, because there are scammers who send fake audit letters to innocent victims, in an attempt to extort money out of them. You should search the Internet for the name of the organization that the letter claims to represent, and call them using the contact information on their website, and confirm that you are actually being audited.

Once you have confirmed that your audit is authentic, you will be obligated to meet the auditor at an agreed-upon time and place. The auditor will usually inform you about what documents and other proof 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 Newark, Delaware

There are numerous different reasons why the federal government, or the tax authorities of Delaware might decide that a tax audit is warranted in your case.

As mentioned earlier, you might get audited just because you were chosen at random. If this is the case, and you know that your tax return was totally truthful, and have the documentation to back it up, you shouldn't have anything to worry about.

On the other hand, some taxpayers in Newark, Delaware are audited for a specific reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very typical reason for a tax audit. For example, if you claim on your tax return that you make ,000 per year, and, in the same year, buy 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 large number of deductions that your tax liability is unusually low, you may well be subject to an audit in Newark, Delaware. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Certain business expenses and charitable donations are common 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 proper documentation to back them up.

How Can A Newark, Delaware 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 Newark, Delaware. 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 little bit of interest, without incurring any additional penalties.

But, in more convoluted cases, chances are you would be well-served by a tax lawyer in Newark, Delaware, to ensure that your tax audit goes smoothly.

Talk to a Tax Law Attorney now!

Life in Newark

Newark, Delaware is a city in New Castle County, and is located just miles away from Wilmington, the largest city in Delaware. As of a 2006 estimate by the Census Bureau, Newark has a population of just over 30,000 people.

Newark was founded by Scots-Irish and Welshsettlers in the late 1600s. However, the town was not officially chartered until 1758, when King George II issued a charter.

Throughout its history, Newark, Delaware has been a center for education, and educational institutions have played an important role in its development over the last few hundred years.

A grammar school was established in the town in 1765, as the Newark Academy. 3 signers of the Declaration of Independence were among the school's first graduates. Newark is also home to the University of Delaware, which was founded in 1833 as Newark College. Today, the University of Delaware is well regarded for many of its programs, particularly in the life sciences.

Newark, Delaware attorneys have to be ready to handle a wide variety of cases, given the unique demographics of the college town. Newark, Delaware has a large number of college students, as well as affluent families. The legal issues that these two groups are likely to face are very different from one another. Accordingly, Newark, Delaware lawyers have to be very well-rounded, making it very likely that they can handle just about any legal issue you might face.

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