Tax Audit Lawyers in Lebanon

In Lebanon, 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. Normally, they do this because there is something suspicious in the tax return. State and federal tax authorities also do a certain number of random audits each year, without necessarily suspecting that an individual auditee has done anything wrong.

In Lebanon, 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 really legitimate, there are a few things you can do to prepare. First, you should assemble all of the appropriate 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 number of questions, which you should answer honestly and to the best of your knowledge.

Reasons For a Tax Audit in Lebanon, Illinois

A tax audit in Illinois can be done for almost any reason at all

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

However if the IRS or other tax agency suspects actual wrongdoing by a Lebanon, Illinois taxpayer, that's a different matter. There are many different reasons why a government might decide to audit a taxpayer. The most frequent one is suspicion that they have underreported their income. If a taxpayer buys a massive number of expensive luxury items, but reports little or no income on their tax returns, the government will definitely want to know where the money to buy all those things came from, and why it hasn't been declared as taxable income.

It is also common to be audited in Lebanon, Illinois if you claim a huge number of deductions. A tax deduction is simply a legal subtraction from one's taxable income. Many different expenses, including charitable donations, interest paid on mortgages, and others, are deductible from one's taxes. If you claim so many deductions that you have negated almost all of your tax liability, you can bet that the government is going to be suspicious.

How Can A Lebanon, Illinois Tax Lawyer Help?

If you find yourself being audited in Lebanon, Illinois, and are certain that you have done everything right in preparing your taxes, then the audit will probably be over quickly, with no penalties imposed. In cases like this, if anything is found to be wrong with your tax return, it is likely the result of an honest mistake, and the auditor will be aware of this, and will probably give you an opportunity to correct your mistake, without suffering any penalties, with the possible exception of being made to pay interest on any back taxes you owe.

However, there are times when an audit is conducted to investigate far more serious issues. If you find yourself facing allegations from the IRS of serious wrongdoing, and believe yourself to be innocent, you should obtain the advice of a Lebanon, Illinois tax attorney immediately.