Tax Audit Lawyers in Lumberton
A "tax audit" is a procedure in Lumberton, 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 Lumberton, North Carolina is usually 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 specified 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 Lumberton, 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.
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.
On the other hand, some taxpayers in Lumberton, North Carolina are audited for a specific reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very typical reason for a tax audit. For example, if you claim on your tax return that you make ,000 per year, and, in the same year, buy an expensive luxury item, the tax authorities will wonder where you got that extra money, and why you're not paying taxes on it.
If you claim such a large number of deductions that your tax liability is unusually low, you may well be subject to an audit in Lumberton, North Carolina. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Certain business expenses and charitable donations are common 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 proper documentation to back them up.
How Can A Lumberton, North Carolina Tax Lawyer Help?
If you find yourself being audited in Lumberton, North Carolina, 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.
Nonetheless, if the situation is more confusing, you may need to hire a Lumberton, North Carolina tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.