Tax Audit Lawyers in Franklin Park

An "audit" is an administrative proceeding in Franklin Park, Pennsylvania 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 typically 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.

The procedure of being audited in Franklin Park, Pennsylvania is typically pretty simple. If and when the tax authorities decide to audit you, they'll send you a letter in the mail detailing what's about to happen. If you receive such a letter, it's extremely important that you make sure it's authentic. Sometimes, scam artists will send fake audit notices to people, claiming that they owe the government money. They will then collect their "taxes" and disappear. You should do an internet search for the name of the tax authority that the letter claims to represent, and call them to verify that you are 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 Franklin Park, Pennsylvania

There are many different reasons why the federal government, or the tax authorities of Pennsylvania might decide that a tax audit is warranted in your case.

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.

However if the IRS or other tax agency suspects actual wrongdoing by a Franklin Park, Pennsylvania taxpayer, that's a different matter. There are many different reasons why a government might decide to audit a taxpayer. The most typical one is suspicion that they have underreported their income. If a taxpayer buys a considerable number of expensive luxury items, but reports little or no income on their tax returns, the government will definitely want to know where the money to buy all those things came from, and why it hasn't been declared as taxable income.

If you claim such a considerable number of deductions that your tax liability is unusually low, you may well be subject to an audit in Franklin Park, Pennsylvania. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Specific business expenses and charitable donations are customary sources of tax deductions. However, some people add invalid deductions to their tax returns to reduce their tax burden. If the IRS is suspicious about your deductions, you should make sure you have appropriate documentation to back them up.

How Can A Franklin Park, Pennsylvania Tax Lawyer Help?

If you find yourself being audited in Franklin Park, Pennsylvania, and are certain that you have done everything right in preparing your taxes, then the audit will probably be over quickly, with no penalties imposed. In cases like this, if anything is found to be wrong with your tax return, it is likely the result of an honest mistake, and the auditor will be aware of this, and will probably give you an opportunity to correct your mistake, without suffering any penalties, with the possible exception of being made to pay interest on any back taxes you owe.

However, if the situation is more confusing, you may need to hire a Franklin Park, Pennsylvania tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.