Tax Audit Lawyers in Dyersville

A "tax audit" in Iowa 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.

In Dyersville, Iowa, the process of a tax audit is usually not perplexing. If you get a letter saying that you have been chosen for an audit, you should still take it seriously, however. The first thing you need to do is confirm that you are truly being audited, because there are fraudsters who impersonate tax collectors, attempting to squeeze money out of innocent victims. When you receive such a letter, you should use the phone book or Internet to find the contact info for the government agency that the letter claims to be from, and contact them. Do not rely on any contact information provided in the letter, as it may direct you to the scammer, who will just pretend to be a representative of the IRS.

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 typically 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 Dyersville, Iowa

A tax audit in Iowa can be performed for almost any reason at all

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 Dyersville, Iowa are audited for a particular 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 considerable number of deductions that your tax liability is unusually low, you may well be subject to an audit in Dyersville, Iowa. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Specific business expenses and charitable donations are customary 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 appropriate documentation to back them up.

How Can A Dyersville, Iowa 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 Dyersville, Iowa. 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.

However, there are some tax audits where the underlying facts are much more complicated than a simple misunderstanding. In these cases, a good tax attorney in Dyersville, Iowa may be necessary to ensure that the process is as painless as it can possibly be.