Tax Audit Lawyers in Bloomfield
A "tax audit" is a procedure in Bloomfield, New Mexico 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 Bloomfield, New Mexico is normally 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 really being audited.
Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place mentioned 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 Bloomfield, New Mexico
Tax Audits in New Mexico can occur for a wide variety of different reasons.
As discussed earlier, tax audits can be conducted at random. Evidently, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a considerable 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 certainly have nothing to worry about.
On the other hand, some taxpayers in Bloomfield, New Mexico 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 recognized reason for a tax audit. For instance, if you claim on your tax return that you make ,000 per year, and, in the same year, purchase 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, 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 frequent sources of tax deductions in Bloomfield, New Mexico 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 really 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 Bloomfield, New Mexico Tax Lawyer Help?
If you are audited in Bloomfield, New Mexico, and believe that you have done everything right in gathering and filing your tax return, you probably don't have much to worry about. If there is anything wrong with your tax return, it was probably the result of an honest mistake, which will result in light penalties - normallyy just an order to pay any back taxes you owe, plus interest.
But, there are some tax audits that are far more difficult 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 Bloomfield, New Mexico tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.