Tax Audit in East Providence, Rhode Island

Find the right Tax Audit attorney in East Providence, RI

Tax Audit Lawyers in East Providence

An "audit" is an administrative proceeding in East Providence, 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 East Providence, 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 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 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 East Providence, Rhode Island

There are various 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 considered earlier, an audit might happen 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.

Nonetheless if the IRS or other tax agency suspects actual wrongdoing by an East Providence, Rhode Island taxpayer, that's a different matter. There are various different reasons why a government might determine 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 discover where the money to buy all those things came from, and why it hasn't been declared as taxable income.

Another typical reason for tax audits in East Providence, Rhode Island is when a taxpayer claims a large number of deductions. A deduction is just a legally-permitted 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 East Providence, Rhode Island Tax Lawyer Help?

If you find yourself on the business end of a tax audit in East Providence, Rhode Island, and you are sure that you have reported all of your income, and not claimed any invalid deductions, chances are you were just chosen at random for an audit, and you likely don't have any cause for concern, other than the inconvenience that an audit represents. If you are deemed to owe any back taxes, and your failure to pay in the past was the result of an honest mistake, you'll likely be afforded a chance to pay any taxes you owe from past years, with the possible addition of interest.

However, there are times when an audit is conducted to investigate far more significant issues. If you find yourself facing allegations from the IRS of serious wrongdoing, and believe yourself to be innocent, you should pursue the advice of an East Providence, Rhode Island tax attorney immediately.

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Life in East Providence

East Providence, Rhode Island is a city of approximately 50,000 in Providence County. It is the 5th largest city in the state of Rhode Island.

East Providence is considered a major suburb of Providence. Although it is a relatively small city by national standards, it is fairly large Rhode Island standards, and it has dozens of sites and buildings in the National Register of Historic Places. Because of its many historical sites, it is fairly popular among tourists visiting the New England region.

East Providence, Rhode Island also boasts a large number of parks for outdoor recreation.

It has been designated an "enterprise zone" by the state of Rhode Island. In an effort to promote economic growth in particular need of it, the state has a program to incentivize the establishment of businesses in designated enterprise zones, such as East Providence. For example, such as tax credits for hiring new employees, and continuing to increase the number of employees each year. Some permit fees are also waived, and the process of acquiring business permits is streamlined.

If you live in East Providence, and find yourself in need of legal representation, an East Providence, Rhode Island attorney can help.

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