Tax Audit Lawyers in Marengo
In Marengo, 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 Marengo, 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 Marengo, Illinois
A tax audit in Illinois can be done for almost any reason at all
As discussed earlier, an audit might occur due to a taxpayer being randomly selected. If this happens to you, and you have been straightforward on your tax returns, it's unlikely that you'll have much to worry about.
However if the IRS or other tax agency suspects actual wrongdoing by a Marengo, Illinois taxpayer, that's a different matter. There are several 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.
Claiming an unusually-high number of deductions is another frequent reason for tax audits in Marengo, 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 massive 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 Marengo, Illinois Tax Lawyer Help?
If you experience an audit in Marengo, Illinois, 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 normally light. It will probably be little more than a requirement that you pay back taxes and interest.
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 Marengo, Illinois tax attorney immediately.