Tax Audit Lawyers in Mendota Heights
In Mendota Heights, Minnesota, 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 some number of random audits each year, without necessarily suspecting that an individual auditee has done anything wrong.
In Mendota Heights, Minnesota, the process of a tax audit is typically not convoluted. If you get a letter saying that you have been chosen for an audit, you should still take it seriously, however. The first thing you need to do is confirm that you are really being audited, because there are fraudsters who impersonate tax collectors, attempting to squeeze money out of innocent victims. When you receive such a letter, you should use the phone book or Internet to find the contact info for the government agency that the letter claims to be from, and contact them. Do not rely on any contact information provided in the letter, as it may direct you to the scammer, who will just pretend to be a representative of the IRS.
After confirming that the audit you're facing is really legitimate, there are a few things you can do to prepare. Initially, you should assemble all of the appropriate 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 number of questions, which you should answer honestly and to the best of your knowledge.
Reasons For a Tax Audit in Mendota Heights, Minnesota
A tax audit in Minnesota can be done for almost any reason at all
A taxpayer can be chosen for an audit at random, even if the tax authorities don't suspect any wrongdoing. The idea behind these random audits is to keep taxpayers on their toes. So, if you are audited for this reason, and know that you've done everything thoroughly in filing your taxes, you will likely be fine.
Nonetheless, some people in Mendota Heights, Minnesota are audited because the government suspects that they are underreporting their income. For instance, if you report that you only make ,000 per year, and then go out and buy an expensive sports car, the IRS and state tax authorities are going to want to discover where the money to buy that car came from.
Claiming an unusually-high number of deductions is another frequent reason for tax audits in Mendota Heights, Minnesota. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a wide 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 legitimate.
How Can A Mendota Heights, Minnesota Tax Lawyer Help?
If you find yourself on the business end of a tax audit in Mendota Heights, Minnesota, 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 obtain the advice of a Mendota Heights, Minnesota tax attorney immediately.