Tax Audit Lawyers in Hendersonville

A "tax audit" is a procedure in Hendersonville, 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.

The procedure of being audited in Hendersonville, North Carolina is typically pretty simple. If and when the tax authorities decide to audit you, they'll send you a letter in the mail detailing what's about to happen. If you receive such a letter, it's extremely important that you make sure it's authentic. Sometimes, scam artists will send fake audit notices to people, claiming that they owe the government money. They will then collect their "taxes" and disappear. You should do an internet search for the name of the tax authority that the letter claims to represent, and call them to verify that you are being audited.

Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place stated in the letter, and subsequent communications with the auditor. The auditor will tell you what documents and records you need to bring to the meeting. They will then ask you some questions to clear up whatever discrepancy they found in your tax return.

Reasons For a Tax Audit in Hendersonville, North Carolina

There are numerous 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 considered earlier, an audit might happen due to a taxpayer being randomly selected. If this happens to you, and you have been forthright on your tax returns, it's unlikely that you'll have much to worry about.

Nonetheless if the IRS or other tax agency suspects actual wrongdoing by a Hendersonville, North Carolina taxpayer, that's a different matter. There are numerous different reasons why a government might determine to audit a taxpayer. The most typical one is suspicion that they have underreported their income. If a taxpayer buys a considerable number of expensive luxury items, but reports little or no income on their tax returns, the government will definitely want to discover 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 considerable number of deductions that your tax liability is unusually low, you may well be subject to an audit in Hendersonville, North Carolina. 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 Hendersonville, North Carolina Tax Lawyer Help?

If you are audited in Hendersonville, North Carolina, 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 Hendersonville, North Carolina tax attorney immediately.