Tax Audit Lawyers in Cibolo

An "audit" is an administrative proceeding in Cibolo, Texas 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 Cibolo, Texas 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. 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 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.

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 Cibolo, Texas

There are plenty of reasons why Texas's government, or the federal government, might conduct a tax audit.

As mentioned above, an audit can happen simply because a person was chosen for an audit at random. If you are randomly chosen for a tax audit, and you have been straightforward and diligent in gathering your tax documents, it will probably be a quick, painless process, and you likely don't have anything to worry about.

However, some people in Cibolo, Texas 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.

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 Cibolo, Texas. 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 Cibolo, Texas Tax Lawyer Help?

If you experience an audit in Cibolo, Texas, 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.

However, there are some tax audits where the underlying facts are much more difficult than a simple misunderstanding. In these cases, a good tax attorney in Cibolo, Texas may be necessary to ensure that the process is as painless as it can possibly be.