Tax Audit in Needham, Massachusetts

Find the right Tax Audit attorney in Needham, MA

Tax Audit Lawyers in Needham

In Needham, 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. Typically, 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 Needham, Massachusetts is typically 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 truly being audited.

Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place stated 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 Needham, 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, tax audits can be conducted at random. Apparently, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a substantial 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 certainly have nothing to worry about.

However if the IRS or other tax agency suspects actual wrongdoing by a Needham, Massachusetts taxpayer, that's a different matter. There are several different reasons why a government might decide to audit a taxpayer. The most typical one is suspicion that they have underreported their income. If a taxpayer buys a considerable 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.

It is also common to be audited in Needham, Massachusetts if you claim a massive number of deductions. A tax deduction is simply a legal subtraction from one's taxable income. Several 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 Needham, Massachusetts Tax Lawyer Help?

If you find yourself being audited in Needham, Massachusetts, 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 pursue the advice of a Needham, Massachusetts tax attorney immediately.

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Life in Needham

Needham, Massacheutts is considered one of the more desireable suburbs of the state's capital of Boston because of the great school system, thriving professional community, and strong sense of community that Needham fosters in its 30,000 residents. Originally founded in 1680, Needham was a rather unsuccessful farming community before realizing success in other industries. There is still some colonial charm in the city-- it still governs itself with a representative town meeting. With only one public high school and middle school, the small town feel is also felt in the city's education. A commuter suburb of Boston, many successful professionals have also set-up office in Needham. For instance,Needham is home to a packing plant for popular market chain Trader Joes. In addition to great supermarkets,Needham also has great lawyers. Lawyers specializing in a range of legal practices are available to help their fellow citizen with any issue he or she may find find themselves confronted with.

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