Tax Audit Lawyers in Saddle Brook

A "tax audit" is a procedure in Saddle Brook, 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 procedure involved in a tax audit in Saddle Brook, New Jersey is usually 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 crucial 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 actually 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 Saddle Brook, New Jersey

Tax Audits in New Jersey can occur for a wide variety of different reasons.

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

However, some people in Saddle Brook, New Jersey are audited because the government suspects that they are underreporting their income. For example, 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 know where the money to buy that car came from.

Likewise, trying to deduct a large percentage of your income is likely to raise suspicions. A tax deduction is a way to reduce one's tax liability by making some of one's income non-taxable. Some common sources of tax deductions in Saddle Brook, New Jersey are business expenses and charitable donations. Some people, however, try to include false deductions in their tax returns (trying to deduct charitable donations they never actually gave, for example). A massive 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 Saddle Brook, New Jersey Tax Lawyer Help?

If you find yourself on the business end of a tax audit in Saddle Brook, New Jersey, 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 probably don't have any cause for concern, other than the inconvenience that an audit represents. If you are found 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.

However, there are some tax audits where the underlying facts are much more complex than a simple misunderstanding. In these cases, a good tax attorney in Saddle Brook, New Jersey may be necessary to ensure that the process is as painless as it can possibly be.