Tax Audit Lawyers in Centereach

A "tax audit" is a procedure in Centereach, New York 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 Centereach, New York 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 critical 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.

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 Centereach, New York

There are various reasons why the federal government, or the government of New York may want to audit a taxpayer.

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

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

Claiming an unusually-high number of deductions is another frequent reason for tax audits in Centereach, New York. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a wide number of deductions that your tax liability has been reduced to almost nothing, the IRS will probably want to make sure that all of these deductions are legitimate.

How Can A Centereach, New York 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 Centereach, New York. 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 likely just be made to pay the balance due, plus a minimal bit of interest, without incurring any additional penalties.

Nonetheless, if the situation is more confusing, you may need to hire a Centereach, New York tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.