Tax Audit Lawyers in Gloversville

A "tax audit" is a procedure in Gloversville, 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 Gloversville, 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 Gloversville, New York

There are plethora of reasons why New York's government, or the federal government, might conduct a tax audit.

As considered 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 definately have nothing to worry about.

But, some Gloversville, New York tax audits happen for a certain reason. This is normally because the IRS or your local tax authority suspects that you have not reported all of your income on your tax return. For instance, suppose that, last year, you bought an expensive new luxury car. But say you only claimed ,000 in total income that year. As you might imagine, the IRS is going to be extremely interested in finding out where the money for that car came from, and, if you have enough money to buy it, why you aren't paying taxes on that money.

Another frequent reason for tax audits in Gloversville, New York is when a taxpayer claims a large number of deductions. A deduction is just a legally-authorized subtraction from a person's taxable income. For example, charitable donations can be deducted from one's income in the full amount of the donation. Nonetheless, 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 Gloversville, 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 Gloversville, 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.

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