Tax Audit in Frederick, Maryland

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Tax Audit Lawyers in Frederick

In Frederick, Maryland, 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 Frederick, Maryland 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 important 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.

After confirming that the audit you're facing is truly legitimate, there are a few things you can do to prepare. First, you should assemble all of the proper 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 list of questions, which you should answer honestly and to the best of your knowledge.

Reasons For a Tax Audit in Frederick, Maryland

There are many reasons why the federal government, or the government of Maryland may want to audit a taxpayer.

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 Frederick, Maryland taxpayer, that's a different matter. There are many 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.

Claiming an unusually-high number of deductions is another prevalent reason for tax audits in Frederick, Maryland. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a huge 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 Frederick, Maryland Tax Lawyer Help?

If you experience an audit in Frederick, Maryland, 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 typically light. It will probably be little more than a requirement that you pay back taxes and interest.

However, if the situation is more confusing, you may need to hire a Frederick, Maryland tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.

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Life in Frederick

Frederick is located in Frederick County, Maryland. Specifically, it is in the central north of Maryland. Frederick is Maryland's largest county. Overall, the city has a population of around 65,239 people.

Frederick's largest employer is the U.S. Army's Fort Detrick. Next in line is BP Solar. Unfortunately, after March 2010, BP had to lay off many employees. Frederick is also home to a few attorneys that practice actively and do their best to tend to the legal needs of residents.

Some popular attractions include Cityscape, The Frederick Arts Council, and The Maryland Ensemble Theatre (MET).

Famous past and present residents include Joe Alexander, Michael Beasley, Lester Bowie, Fred Carter, Chuck Foreman, David Gallaher, Sam Hinds MLB, Bradley Tyler Johnson, Charles Mathias, Florence Roberts, Winfield Scott Schley, and Bryan Voltaggio.

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