Tax Audit Lawyers in Woodruff

An "audit" is an administrative proceeding in Woodruff, South Carolina 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 usually 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 process of a Woodruff, South Carolina tax audit is usually pretty straightforward. If and when you are faced with a tax audit, you'll receive a letter from the IRS, or its state equivalent, telling you that you're being audited. However, you should not assume that this letter is authentic, because con artists will sometimes send fake audit letters to squeeze money out of innocent taxpayers. You should seek independent confirmation of the letter's authenticity by searching the Internet for the name of the government agency in question, and contact them for more information.

Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place specified 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 Woodruff, South Carolina

A tax audit in South Carolina can be conducted for almost any reason at all

As discussed earlier, an audit might occur due to a taxpayer being randomly selected. If this happens to you, and you have been honest on your tax returns, it's unlikely that you'll have much to worry about.

However, some people in Woodruff, South Carolina are audited because the government suspects that they are underreporting their income. For example, if you report that you only make ,000 per year, and then go out and buy an expensive sports car, the IRS and state tax authorities are going to want to know where the money to buy that car came from.

Claiming an unusually-high number of deductions is another common reason for tax audits in Woodruff, South Carolina. 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 Woodruff, South Carolina Tax Lawyer Help?

If you end up being tax audited, and you believe that you have not engaged in any wrongdoing, it's likely that you've been chosen randomly for an audit in Woodruff, South Carolina. If this is the case, you shouldn't be worried. If you are found to have made a mistake on a past tax return, and paid less than you owed, you'll probably just be made to pay the balance due, plus a little bit of interest, without incurring any additional penalties.

However, if the situation is more perplexing, you may need to hire a Woodruff, South Carolina tax attorney. A tax attorney can help you through your audit, and make sure it goes as smoothly as possible.