Tax Audit Lawyers in Lisle
In Lisle, 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 certain number of random audits each year, without necessarily suspecting that an individual auditee has done anything wrong.
In Lisle, 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. First, 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 Lisle, Illinois
A tax audit in Illinois can be conducted 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 Lisle, Illinois taxpayer, that's a different matter. There are several different reasons why a government might decide to audit a taxpayer. The most common one is suspicion that they have underreported their income. If a taxpayer buys a large 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.
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 Lisle, Illinois. 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 Lisle, Illinois Tax Lawyer Help?
If you find yourself being audited in Lisle, 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 seek the advice of a Lisle, Illinois tax attorney immediately.