Tax Audit Lawyers in East Alton
A "tax audit" in Illinois 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 random audits, where they audit taxpayers at random, without necessarily suspecting them of any wrongdoing.
In East Alton, Illinois, 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 simply 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 ready for it. Most importantly, 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 East Alton, Illinois
There are many different reasons why the federal government, or the tax authorities of Illinois might decide that a tax audit is warranted in your case.
As discussed earlier, an audit might occur 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 East Alton, Illinois 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 given 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 East Alton, Illinois. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a huge 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 valid.
How Can A East Alton, Illinois 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 East Alton, Illinois. 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 probably just be made to pay the balance due, plus a little bit of interest, without incurring any additional penalties.
However, if the situation is more confusing, you may need to hire an East Alton, Illinois tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.