Mchenry, Illinois follows a relatively simple procedure for tax audit. If you are selected for audit by a government entity, first thing you will receive is information through mail.

You should verify the mail’s authenticity, as there scams that pretend to be as tax officials on behalf of the IRS. These fake personas conduct false audits on unaware taxpayers claiming that money is owed to the government.

With that being said, it is imperative that the receiver of the letter initiates contact with the nearest tax office branch. The letter will reference your specific returns and will be sure to include necessary information that can help you determine if it’s a real letter or a fake.

To make sure you are calling the right people, by using a phone directory or browsing through the Internet to get the real number is best.

Once the audit is found to be legitimate, you can now start preparing for it. You may now gather all the necessary documents for the tax audit. These documents should include W-2 forms, records of expenses you can use to claim for deductions, and your tax return.

These documents should be brought to your meeting with the auditor who may request for other accompanying papers. During the meeting, you will be asked several questions. It is important to answer those questions as honestly as possible.

Reasons Why a Tax Audit is Conducted in Mchenry County, Illinois

The tax audit procedure involves local tax authorities or the IRS conducting investigation on taxpayers’ tax filings. This can happen also in Mchenry County in Illinois.

Either of the two government entities looks at the filings in a more detailed approach than what is usually done.

Conducting a tax audit procedure takes place when there is an apparent suspicion in a property owner’s tax return. Some may be audited due to instances where there is underreporting of income.

In instances where the income reported totaled to an annual minimum of $20,000 and there was a purchase of an expensive household item or vehicle, tax authorities may have a reason to doubt a low tax return. The authorities may want to know where the money came from.

It is understood that tax deductions are expenditures that can be subtracted from a taxpayer’s taxable income. Some taxpayers may also provide data with dubious deductions. This will be another reason for tax audits to come to play.

With a relatively high tax deduction, your claim may be challenged by the IRS, especially if your tax liability goes down to almost nothing at all. This situation makes your filed tax return suspicious in the eyes of the auditor.

The federal and state tax authorities also conduct yearly random audits even if there are no suspicious instances and there are times when there is no apparent wrongdoing at all.

The reason is to enable more vigilance on the part of the taxpayers. For people who think they have thoroughly done everything and have followed all the instructions, they will have nothing to fear.

How Can A Mchenry County, Illinois Tax Lawyer Help

If ever you end up in a tax audit meeting and you think that you haven’t engaged in any dubious tax filing activity, it means that you have just been picked for a random Mchenry County audit. This should not be a case to worry about.

In cases where there was a mistake in your tax return filing for the previous year, or have paid a lesser amount than what you owed the government, you can pay the due balance with an additional amount as interest. This act can guarantee you of no incurred penalties.

For the more complicated cases, you need to ask for legal advice from the best lawyers within Mchenry, Illinois. You can always find one that suits your type of issue. In order to get past your tax audit, it is better to consult with a tax lawyer prior to going to a meeting. That way, you will be prepared to speak and answer questions hurled at you by an auditor.

LegalMatch is a site where you can find topnotch attorneys for your tax issues. There is always an attorney in Mchenry County, Illinois who can be paired with your legal problems. To ensure a smooth tax audit, waste no time now.