Tax Audit Lawyers in Enid
An "audit" is an administrative proceeding in Enid, Oklahoma whereby the IRS, or a local tax-collection agency looks at a person's (or business's) tax filings in more detail than they do in ordinary cases. This is normally done when the tax return has a suspicious discrepancy on it, or if the taxpayer was simply picked at random. It's not uncommon for tax authorities to conduct random audits, providing people with an incentive to be honest on their taxes, knowing that they could be audited at random.
In Enid, Oklahoma the procedure of being audited is relatively simple. If you are chosen to be audited, you will receive a letter in the mail telling you as much. It's important to verify the authenticity of this letter, because sometimes con-artists will pose as tax authorities, and conduct fake audits of unsuspecting taxpayers, then claim that they owe the government more money. If the victim pays, the scammer takes the money and runs. To verify that a letter is authentic, you should contact the nearest branch of the relevant tax authority. Do not simply call the number provided to you in the letter, since it will probably lead to the scammer. Use a phonebook or the Internet to find the actual number you should call.
Once you have confirmed that your audit is authentic, you will be required to meet the auditor at an agreed-upon time and place. The auditor will normally inform you about what documents and other evidence you need to take to the meeting. At the meeting, they will ask you a long series of questions about your taxes, to clear up the thing they're uncertain about.
Reasons For a Tax Audit in Enid, Oklahoma
Tax Audits in Oklahoma can occur for a wide variety of different reasons.
As mentioned earlier, you might get audited simply because you were chosen at random. If this is the case, and you know that your tax return was completely truthful, and have the documentation to back it up, you shouldn't have anything to worry about.
On the other hand, there are also certain reasons why the tax authorities in Enid, Oklahoma 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 given 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 Enid, Oklahoma. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a huge 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 valid.
How Can A Enid, Oklahoma Tax Lawyer Help?
If you experience an audit in Enid, Oklahoma, and believe that you have properly reported all of your income on your tax filings, it will probably go fine. And if there is anything wrong with your filings, it was likely the result of an honest mistake, and auditors are generally sensitive to this fact. In such cases, the penalty is normally light. It will probably be little more than a requirement that you pay back taxes and interest.
But, there are some tax audits that are far more convoluted and serious than a tax return having a few more deductions than usual. If this is the situation you're in, you should contact an Enid, Oklahoma tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.