Tax Audit in Bristol, Rhode Island

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Tax Audit Lawyers in Bristol

An "audit" is an administrative proceeding in Bristol, Rhode Island 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 Bristol, Rhode Island 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.

After confirming that the letter informing you of your audit is authentic, there are various 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 concerns 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 Bristol, Rhode Island

There are several different reasons why the federal government, or the tax authorities of Rhode Island 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.

On the other hand, there are also particular reasons why the tax authorities in Bristol, Rhode Island might want to conduct a tax audit. The most prevalent 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 considerable number of expensive luxury items, but only claims a small amount of income on their tax return. Obviously, the tax man will be quite interested in learning where someone who is claiming a minimum-wage level income on their taxes got the money to buy a sports car.

Likewise, trying to deduct a large percentage of your income is likely to raise suspicions. A tax deduction is a way to reduce one's tax liability by making some of one's income non-taxable. Some customary sources of tax deductions in Bristol, Rhode Island are business expenses and charitable donations. Some people, however, try to include false deductions in their tax returns (trying to deduct charitable donations they never truly gave, for example). A massive number of deductions will be highly suspicious to the tax authorities, and they will want to see evidence to support every deduction you claim, if you're audited.

How Can A Bristol, Rhode Island Tax Lawyer Help?

If you experience an audit in Bristol, Rhode Island, 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 typically light. It will probably be little more than a requirement that you pay back taxes and interest.

However, if the situation is more difficult, you may need to hire a Bristol, Rhode Island tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.

Talk to a Tax Law Attorney now!

Life in Bristol

Bristol is located in Bristol County, Rhode Island. It is a small city with a population of around 23,000 people. It is a seaport that is named after Bristol, England. In fact, the atmosphere at Bristol Harbor is very serene and peaceful. It is one of Bristol's most beautiful spots!

Major industries that drive Bristol's economy include boat building, manufacturing and tourism. Some great attractions include America's Cup Hall of Fame, Blithewold Mansion, Gardens and Arboretum, Bristol County Jail, Bristol County Courthouse, Bristol Ferry Lighthouse, Colt State Park, Gillary's Tavern, Herreshoff Marine Museum, Linden Place, Mount Hope Bridge, Poppasquash Farms Historic District, Joseph Reynolds House, and Coggeshall Farm Museum. As evident, Bristol is a history-lover's delight!

Bristol is also home to many law offices established by competent attorneys. These attorneys are well-experienced in many areas of law, making them easily able to handle the legal needs of residents and local businesses.

All in all, Bristol has it all--beauty, history, charm, and serenity!

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