Tax Audit Lawyers in Glendive

A "tax audit" is a procedure in Glendive, Montana where the tax authorities investigate a taxpayer's (whether the taxpayer is a person or corporation) filings when it looks like there's some kind of discrepancy. However, many state and federal tax audits are the result of random selection, when the authorities don't necessarily think that a taxpayer has deliberately evaded their taxes.

In Glendive, Montana the procedure of being audited is relatively simple. If you are chosen to be audited, you will receive a letter in the mail telling you as much. It's important to verify the authenticity of this letter, because sometimes con-artists will pose as tax authorities, and conduct fake audits of unsuspecting taxpayers, then claim that they owe the government more money. If the victim pays, the scammer takes the money and runs. To verify that a letter is authentic, you should contact the nearest branch of the relevant tax authority. Do not simply call the number provided to you in the letter, since it will probably lead to the scammer. Use a phonebook or the Internet to find the actual number you should call.

After confirming that the letter informing you of your audit is authentic, there are several things you can do to prepare for your meeting with the auditor. The initial thing you need to do is call them and arrange to meet at a time that's mutually convenient. You should bring any documents and records that the auditor requests, as well as any proof that you think might be helpful in answering the auditor's questions. The auditor will ask you any questions that he or she believes will clear up whatever issues they have with your return. You should answer all of these questions truthfully, as it is illegal to lie to a tax auditor.

Reasons For a Tax Audit in Glendive, Montana

There are plethora of reasons why Montana's government, or the federal government, might conduct a tax audit.

As mentioned above, an audit can happen simply because a person was chosen for an audit at random. If you are randomly chosen for a tax audit, and you have been honest and diligent in preparing your tax documents, it will probably be a quick, painless process, and you likely don't have anything to worry about.

On the other hand, there are also specific reasons why the tax authorities in Glendive, Montana might want to conduct a tax audit. The most common reason for a tax audit is suspicion that a taxpayer has not reported all of the income they earned in a particular year. This suspicion often arises when a taxpayer buys a large number of expensive luxury items, but only claims a small amount of income on their tax return. Obviously, the tax man will be very interested in learning where someone who is claiming a minimum-wage level income on their taxes got the money to buy a sports car.

Another common reason for tax audits in Glendive, Montana is when a taxpayer claims a large number of deductions. A deduction is just a legally-allowed subtraction from a person's taxable income. For example, charitable donations can be deducted from one's income in the full amount of the donation. Nonetheless, if a person claims a very large number of deductions, to the point that they claim little or no tax liability, the tax authorities are going to take a closer look.

How Can A Glendive, Montana Tax Lawyer Help?

If you find yourself being audited in Glendive, Montana, and are sure that you have done everything right in preparing your taxes, then the audit will likely be over rapidly, 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 likely 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 significant issues. If you find yourself facing allegations from the IRS of serious wrongdoing, and believe yourself to be innocent, you should seek the advice of a Glendive, Montana tax attorney immediately.