Tax Audit Lawyers in Wyomissing
An "audit" is an administrative proceeding in Wyomissing, 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 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.
The procedure of being audited in Wyomissing, Pennsylvania is normally 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.
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 first 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 evidence 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 Wyomissing, Pennsylvania
There are several reasons why the federal government, or the government of Pennsylvania may want to audit a taxpayer.
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.
However if the IRS or other tax agency suspects actual wrongdoing by a Wyomissing, Pennsylvania taxpayer, that's a different matter. There are several different reasons why a government might decide to audit a taxpayer. The most frequent one is suspicion that they have underreported their income. If a taxpayer buys a massive 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.
Claiming an unusually-high number of deductions is another frequent reason for tax audits in Wyomissing, Pennsylvania. A tax deduction is some expenditure that you can subtract from your taxable income, thereby reducing your tax liability. If you claim such a massive 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 Wyomissing, Pennsylvania Tax Lawyer Help?
If you experience an audit in Wyomissing, Pennsylvania, 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 a Wyomissing, Pennsylvania tax attorney as soon as possible, to help make sure that your tax audit goes smoothly.