Tax Audit Lawyers in Pulaski

An "audit" is an administrative proceeding in Pulaski, Tennessee 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 process of a Pulaski, Tennessee tax audit is normally 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. Nonetheless, 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 obtain 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 have confirmed that your audit is authentic, you will be obligated to meet the auditor at an agreed-upon time and place. The auditor will normally inform you about what documents and other proof you need to take to the meeting. At the meeting, they will ask you a long series of questions about your taxes, to clear up the thing they're uncertain about.

Reasons For a Tax Audit in Pulaski, Tennessee

Tax Audits in Tennessee can happen for a wide variety of various reasons.

As mentioned earlier, you might get audited just because you were chosen at random. If this is the case, and you know that your tax return was totally truthful, and have the documentation to back it up, you shouldn't have anything to worry about.

On the other hand, some taxpayers in Pulaski, Tennessee are audited for a certain reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very frequent reason for a tax audit. For example, if you claim on your tax return that you make ,000 per year, and, in the same year, buy an expensive luxury item, the tax authorities will wonder where you got that extra money, and why you're not paying taxes on it.

If you claim such a massive number of deductions that your tax liability is unusually low, you may well be subject to an audit in Pulaski, Tennessee. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Particular business expenses and charitable donations are frequent 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 relevant documentation to back them up.

How Can A Pulaski, Tennessee Tax Lawyer Help?

If you are audited in Pulaski, Tennessee, and believe that you have done everything right in gathering and filing your tax return, you likely don't have much to worry about. If there is anything wrong with your tax return, it was likely the result of an honest mistake, which will result in light penalties - normallyy just an order to pay any back taxes you owe, plus interest.

But, in more confusing cases, chances are you would be well-served by a tax lawyer in Pulaski, Tennessee, to ensure that your tax audit goes smoothly.