Tax Audit Lawyers in Jerome

A "tax audit" in Idaho 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.

In Jerome, Idaho, the process of a tax audit is generally not confusing. 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 actually 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 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 Jerome, Idaho

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

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.

But, some Jerome, Idaho tax audits happen for a specific reason. This is usually because the IRS or your local tax authority suspects that you have not reported all of your income on your tax return. For instance, 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 very 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.

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 Jerome, Idaho. 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 Jerome, Idaho Tax Lawyer Help?

If you experience an audit in Jerome, Idaho, and believe that you have properly reported all of your income on your tax filings, it will probably go fine. And if there is anything wrong with your filings, it was likely the result of an honest mistake, and auditors are generally sensitive to this fact. In such cases, the penalty is usually light. It will probably be little more than a requirement that you pay back taxes and interest.

Nonetheless, if the situation is more confusing, you may need to hire a Jerome, Idaho tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.