Tax Audit Lawyers in Spring Lake Heights

A "tax audit" is a procedure in Spring Lake Heights, 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 Spring Lake Heights, 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 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 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 Spring Lake Heights, 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 forthright on your tax returns, it's unlikely that you'll have much to worry about.

On the other hand, there are also particular reasons why the tax authorities in Spring Lake Heights, New Jersey might want to conduct a tax audit. The most prevalent reason for a tax audit is suspicion that a taxpayer has not reported all of the income they earned in a given year. This suspicion often arises when a taxpayer buys a considerable number of expensive luxury items, but only claims a small amount of income on their tax return. Obviously, the tax man will be quite interested in learning where someone who is claiming a minimum-wage level income on their taxes got the money to buy a sports car.

Another typical reason for tax audits in Spring Lake Heights, New Jersey is when a taxpayer claims a large number of deductions. A deduction is simply a legally-permitted subtraction from a person's taxable income. For instance, charitable donations can be deducted from one's income in the full amount of the donation. However, if a person claims a very large number of deductions, to the point that they claim little or no tax liability, the tax authorities are going to take a closer look.

How Can A Spring Lake Heights, New Jersey Tax Lawyer Help?

If you end up being tax audited, and you believe that you have not engaged in any wrongdoing, it's likely that you've been chosen randomly for an audit in Spring Lake Heights, New Jersey. If this is the case, you shouldn't be worried. If you are found to have made a mistake on a past tax return, and paid less than you owed, you'll probably just be made to pay the balance due, plus a slight bit of interest, without incurring any additional penalties.

But, there are some tax audits that are far more perplexing 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 Spring Lake Heights, New Jersey tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.