Tax Audit Lawyers in Holliston
In Holliston, Massachusetts, 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.
The actual procedure involved in a tax audit in Holliston, Massachusetts is normally fairly straightforward. If you hare chosen for an audit, you will receive a letter in the mail telling you as much. Before responding, it's crucial for you to make sure that the letter is authentic, because there are scammers who send fake audit letters to innocent victims, in an attempt to extort money out of them. You should search the Internet for the name of the organization that the letter claims to represent, and call them using the contact information on their website, and confirm that you are really being audited.
Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place mentioned in the letter, and subsequent communications with the auditor. The auditor will tell you what documents and records you need to bring to the meeting. They will then ask you some questions to clear up whatever discrepancy they found in your tax return.
Reasons For a Tax Audit in Holliston, Massachusetts
There are several different reasons why the federal government, or the tax authorities of Massachusetts might decide that a tax audit is warranted in your case.
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.
On the other hand, there are also certain reasons why the tax authorities in Holliston, Massachusetts might want to conduct a tax audit. The most frequent reason for a tax audit is suspicion that a taxpayer has not reported all of the income they earned in a given year. This suspicion often arises when a taxpayer buys a massive number of expensive luxury items, but only claims a small amount of income on their tax return. Obviously, the tax man will be extremely interested in learning where someone who is claiming a minimum-wage level income on their taxes got the money to buy a sports car.
Claiming an unusually-high number of deductions is another frequent reason for tax audits in Holliston, Massachusetts. 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 Holliston, Massachusetts Tax Lawyer Help?
If you end up being tax audited, and you believe that you have not engaged in any wrongdoing, it's likely that you've been chosen randomly for an audit in Holliston, Massachusetts. If this is the case, you shouldn't be worried. If you are found to have made a mistake on a past tax return, and paid less than you owed, you'll probably just be made to pay the balance due, plus a minimal bit of interest, without incurring any additional penalties.
However, if the situation is more perplexing, you may need to hire a Holliston, Massachusetts tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.