Tax Audit Lawyers in Newton
A "tax audit" is a procedure in Newton, New Hampshire 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 Newton, New Hampshire is normally 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.
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 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 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 Newton, New Hampshire
A tax audit in New Hampshire can be done for almost any reason at all
As mentioned earlier, you might get audited just because you were chosen at random. If this is the case, and you know that your tax return was totally truthful, and have the documentation to back it up, you shouldn't have anything to worry about.
On the other hand, some taxpayers in Newton, New Hampshire are audited for a certain reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very frequent 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.
Likewise, attempting to deduct a large percentage of your income is likely to raise suspicions. A tax deduction is a way to lower one's tax liability by making some of one's income non-taxable. Some frequent sources of tax deductions in Newton, New Hampshire are business expenses and charitable donations. Some people, nonetheless, try to include incorrect deductions in their tax returns (attempting to deduct charitable donations they never really gave, for example). A wide number of deductions will be highly suspicious to the tax authorities, and they will want to see evidence to support every deduction you claim, if you're audited.
How Can A Newton, New Hampshire Tax Lawyer Help?
If you find yourself on the business end of a tax audit in Newton, New Hampshire, and you are sure that you have reported all of your income, and not claimed any invalid deductions, chances are you were just chosen at random for an audit, and you likely don't have any cause for concern, other than the inconvenience that an audit represents. If you are deemed to owe any back taxes, and your failure to pay in the past was the result of an honest mistake, you'll likely be afforded a chance to pay any taxes you owe from past years, with the possible addition of interest.
But, in more complicated cases, chances are you would be well-served by a tax lawyer in Newton, New Hampshire, to ensure that your tax audit goes smoothly.