Tax Audit Lawyers in Albemarle

A "tax audit" is a procedure in Albemarle, North Carolina 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 Albemarle, North Carolina 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 many things you can do to prepare for your meeting with the auditor. The first 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 evidence 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 contentions 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 Albemarle, North Carolina

There are several different reasons why the federal government, or the tax authorities of North Carolina might decide that a tax audit is warranted in your case.

As discussed earlier, an audit might occur due to a taxpayer being randomly selected. If this happens to you, and you have been straightforward on your tax returns, it's unlikely that you'll have much to worry about.

However if the IRS or other tax agency suspects actual wrongdoing by an Albemarle, North Carolina taxpayer, that's a different matter. There are several different reasons why a government might decide to audit a taxpayer. The most frequent one is suspicion that they have underreported their income. If a taxpayer buys a massive 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.

If you claim such a massive number of deductions that your tax liability is unusually low, you may well be subject to an audit in Albemarle, North Carolina. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Particular business expenses and charitable donations are frequent 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 relevant documentation to back them up.

How Can A Albemarle, North Carolina Tax Lawyer Help?

If you are audited in Albemarle, North Carolina, and believe that you have done everything right in gathering 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 - normallyy 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 serious 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 an Albemarle, North Carolina tax attorney immediately.