Tax Audit Lawyers in Harwood Heights
In Harwood Heights, Illinois, a "tax audit" is a procedure in which the IRS or local tax authorities conduct an investigation of a taxpayer's tax filings, looking at them in more detail than they ordinarily do. Usually, they do this because there is something suspicious in the tax return. State and federal tax authorities also do a some number of random audits each year, without necessarily suspecting that an individual auditee has done anything wrong.
In Harwood Heights, Illinois the procedure of being audited is relatively simple. If you are chosen to be audited, you will receive a letter in the mail telling you as much. It's important to verify the authenticity of this letter, because sometimes con-artists will pose as tax authorities, and conduct fake audits of unsuspecting taxpayers, then claim that they owe the government more money. If the victim pays, the scammer takes the money and runs. To verify that a letter is authentic, you should contact the nearest branch of the relevant tax authority. Do not simply call the number provided to you in the letter, since it will probably lead to the scammer. Use a phonebook or the Internet to find the actual number you should call.
After confirming that the audit you're facing is actually legitimate, there are a few things you can do to prepare. Initially, you should assemble all of the relevant documents you have in your possession. This should include your tax return, W-2 forms, and records of any expenses that you claim as deductions. You should bring these documents, and any others that the auditor requests, to the meeting. At the meeting, the auditor will ask you a series of questions, which you should answer honestly and to the best of your knowledge.
Reasons For a Tax Audit in Harwood Heights, Illinois
There are plethora of reasons why Illinois's government, or the federal government, might conduct a tax audit.
As considered earlier, tax audits can be conducted at random. Obviously, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a significant number of random audits each year, taxpayers are, in theory, discouraged from cheating on their taxes, because they know that they might be audited randomly. If you are chosen for a random audit, and have done everything right, you almost definately have nothing to worry about.
But, some Harwood Heights, Illinois 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.
Likewise, attempting to deduct a large percentage of your income is likely to raise suspicions. A tax deduction is a way to lower one's tax liability by making some of one's income non-taxable. Some common sources of tax deductions in Harwood Heights, Illinois are business expenses and charitable donations. Some people, nonetheless, try to include incorrect deductions in their tax returns (attempting to deduct charitable donations they never actually gave, for example). A wide number of deductions will be highly suspicious to the tax authorities, and they will want to see evidence to support every deduction you claim, if you're audited.
How Can A Harwood Heights, Illinois Tax Lawyer Help?
If you are audited in Harwood Heights, Illinois, 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 some tax audits where the underlying facts are much more perplexing than a simple misunderstanding. In these cases, a good tax attorney in Harwood Heights, Illinois may be necessary to ensure that the process is as painless as it can possibly be.