Tax Audit Lawyers in Harpswell

In Harpswell, Maine, 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 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 Harpswell, Maine is usually 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 actually being audited.

After confirming that the audit you're facing is actually legitimate, there are a few things you can do to prepare. First, 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 Harpswell, Maine

Tax Audits in Maine can occur for a wide variety of different reasons.

As discussed 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 certainly have nothing to worry about.

But, some Harpswell, Maine tax audits occur 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 example, 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 common to be audited in Harpswell, Maine 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 Harpswell, Maine Tax Lawyer Help?

If you are audited in Harpswell, Maine, and believe that you have done everything right in preparing and filing your tax return, you probably don't have much to worry about. If there is anything wrong with your tax return, it was probably the result of an honest mistake, which will result in light penalties - usuallyy just an order to pay any back taxes you owe, plus interest.

However, there are some tax audits where the underlying facts are much more complex than a simple misunderstanding. In these cases, a good tax attorney in Harpswell, Maine may be necessary to ensure that the process is as painless as it can possibly be.