Tax Audit Lawyers in Neptune

A "tax audit" is a procedure in Neptune, New Jersey 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 actual process involved in a tax audit in Neptune, New Jersey is typically fairly straightforward. If you hare chosen for an audit, you will receive a letter in the mail telling you as much. Before responding, it's essential for you to make sure that the letter is authentic, because there are scammers who send fake audit letters to innocent victims, in an attempt to extort money out of them. You should search the Internet for the name of the organization that the letter claims to represent, and call them using the contact information on their website, and confirm that you are truly 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 Neptune, New Jersey

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

As considered earlier, tax audits can be conducted at random. Apparently, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a substantial number of random audits each year, taxpayers are, in theory, discouraged from cheating on their taxes, because they know that they might be audited randomly. If you are chosen for a random audit, and have done everything right, you almost definately have nothing to worry about.

Nonetheless, some people in Neptune, New Jersey are audited because the government suspects that they are underreporting their income. For instance, if you report that you only make ,000 per year, and then go out and buy an expensive sports car, the IRS and state tax authorities are going to want to discover where the money to buy that car came from.

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 customary sources of tax deductions in Neptune, New Jersey 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 truly gave, for example). A large 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 Neptune, New Jersey Tax Lawyer Help?

If you experience an audit in Neptune, New Jersey, and believe that you have properly reported all of your income on your tax filings, it will probably go fine. And if there is anything wrong with your filings, it was likely the result of an honest mistake, and auditors are generally sensitive to this fact. In such cases, the penalty is typically light. It will probably be little more than a requirement that you pay back taxes and interest.

But, there are some tax audits that are far more convoluted and serious than a tax return having a few more deductions than usual. If this is the situation you're in, you should contact a Neptune, New Jersey tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.