Tax Audit Lawyers in Riverdale

In Riverdale, 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 Riverdale, 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 Riverdale, Illinois

Tax Audits in Illinois can happen for a wide variety of various reasons.

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 Riverdale, 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.

It is also typical to be audited in Riverdale, Illinois if you claim a wide number of deductions. A tax deduction is simply a legal subtraction from one's taxable income. Various 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 Riverdale, Illinois Tax Lawyer Help?

If you find yourself on the business end of a tax audit in Riverdale, Illinois, and you are sure that you have reported all of your income, and not claimed any invalid deductions, chances are you were just chosen at random for an audit, and you likely don't have any cause for concern, other than the inconvenience that an audit represents. If you are deemed to owe any back taxes, and your failure to pay in the past was the result of an honest mistake, you'll likely be afforded a chance to pay any taxes you owe from past years, with the possible addition of interest.

However, there are times when an audit is conducted to investigate far more significant 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 Riverdale, Illinois tax attorney immediately.