Tax Audit in Grand Prairie, Texas

Find the right Tax Audit attorney in Grand Prairie, TX

Tax Audit Lawyers in Grand Prairie

An "audit" is an administrative proceeding in Grand Prairie, 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.

In Grand Prairie, Texas, the process of a tax audit is typically not difficult. If you get a letter saying that you have been chosen for an audit, you should still take it seriously, however. The first thing you need to do is confirm that you are really being audited, because there are fraudsters who impersonate tax collectors, attempting to squeeze money out of innocent victims. When you receive such a letter, you should use the phone book or Internet to find the contact info for the government agency that the letter claims to be from, and contact them. Do not rely on any contact information provided in the letter, as it may direct you to the scammer, who will simply pretend to be a representative of the IRS.

Once you receive the letter, and confirm its authenticity, you will have to meet with an auditor at the time and place mentioned 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 Grand Prairie, Texas

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

As discussed earlier, tax audits can be conducted at random. Evidently, the government doesn't have the resources to audit every taxpayer under their jurisdiction. But, by conducting a considerable number of random audits each year, taxpayers are, in theory, discouraged from cheating on their taxes, because they know that they might be audited randomly. If you are chosen for a random audit, and have done everything right, you almost certainly have nothing to worry about.

However, some people in Grand Prairie, 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.

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 frequent sources of tax deductions in Grand Prairie, Texas 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 really gave, for example). A huge 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 Grand Prairie, Texas Tax Lawyer Help?

If you find yourself on the business end of a tax audit in Grand Prairie, Texas, 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 probably don't have any cause for concern, other than the inconvenience that an audit represents. If you are found 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 some tax audits where the underlying facts are much more difficult than a simple misunderstanding. In these cases, a good tax attorney in Grand Prairie, Texas may be necessary to ensure that the process is as painless as it can possibly be.

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Life in Grand Prairie

Grand Prairie is a city located in three counties--Dallas, Ellis and Tarrant. Grand Prairie is considered to be a suburb of both Dallas and Fort Worth. Per the 2010 census it has a population of 175,396 people.

Top employers include Lockheed Martin, Grand Prairie Independent School District, Vought Aircraft Industries, Lone Star Park, Hanson Pipe Products and Siemens Energy Automation, Inc. Although law firms are not included in the list, many small law firms and offices call Grand Prairie home. Therefore, residents and businesses have excellent legal services awaiting at their doorstep.

When visiting Grand Prairie, must-see attractions include the Lone Star Park, GPX Skate Park, Verizon Theatre, Prairie Lights, Traders Village, Quiktrip Park, and Grand Prairie AirHogs.

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