Tax Audit Lawyers in St. Cloud
In St. Cloud, 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. Typically, 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 St. Cloud, Minnesota, the process of a tax audit is usually not complicated. 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 truly 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.
Once you have made sure that your audit is indeed real, you can do a few things to get prepared for it. Most especially, you should collect all of the documents that the auditor has asked for, as well as any further documents and evidence that you think might help clear up any confusion about your tax return. You should bring these to the meeting with the auditor, and truthfully (to the best of your knowledge) answer all of the questions that the auditor asks.
Reasons For a Tax Audit in St. Cloud, Minnesota
There are various reasons why the federal government, or the government of Minnesota may want to audit a taxpayer.
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.
But, some St. Cloud, Minnesota tax audits happen for a particular reason. This is typically because the IRS or your local tax authority suspects that you have not reported all of your income on your tax return. For instance, 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 quite 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.
If you claim such a considerable number of deductions that your tax liability is unusually low, you may well be subject to an audit in St. Cloud, Minnesota. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Specific business expenses and charitable donations are customary sources of tax deductions. However, some people add invalid deductions to their tax returns to reduce their tax burden. If the IRS is suspicious about your deductions, you should make sure you have appropriate documentation to back them up.
How Can A St. Cloud, Minnesota Tax Lawyer Help?
If you are audited in St. Cloud, Minnesota, and believe that you have done everything right in collecting and filing your tax return, you likely don't have much to worry about. If there is anything wrong with your tax return, it was likely the result of an honest mistake, which will result in light penalties - typicallyy just an order to pay any back taxes you owe, plus 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 pursue the advice of a St. Cloud, Minnesota tax attorney immediately.