Tax Audit Lawyers in Christiansburg
A "tax audit" is a procedure in Christiansburg, Virginia where a taxpayer's tax return is investigated in detail, to ensure that everything on it is accurate. There are many different reasons why you might be audited, but it's typically because there is something suspicious about your tax return. This doesn't necessarily mean that you did anything wrong; it just means that the tax authorities aren't clear about what is going on with your financial situation, and want to investigate further to clear things up, and ensure that nothing illegal has happened.
In Christiansburg, Virginia the procedure of being audited is relatively simple. If you are chosen to be audited, you will receive a letter in the mail telling you as much. It's important to verify the authenticity of this letter, because sometimes con-artists will pose as tax authorities, and conduct fake audits of unsuspecting taxpayers, then claim that they owe the government more money. If the victim pays, the scammer takes the money and runs. To verify that a letter is authentic, you should contact the nearest branch of the relevant tax authority. Do not simply call the number provided to you in the letter, since it will probably lead to the scammer. Use a phonebook or the Internet to find the actual number you should call.
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 typically 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 Christiansburg, Virginia
There are numerous different reasons why the federal government, or the tax authorities of Virginia might decide that a tax audit is warranted in your case.
A taxpayer can be chosen for an audit at random, even if the tax authorities don't suspect any wrongdoing. The idea behind these random audits is to keep taxpayers on their toes. So, if you are audited for this reason, and know that you've done everything thoroughly in filing your taxes, you will likely be fine.
On the other hand, some taxpayers in Christiansburg, Virginia are audited for a particular reason, rather than being drawn at random. If the tax authorities believe that you have underreported your income, that is a very typical 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 considerable number of deductions that your tax liability is unusually low, you may well be subject to an audit in Christiansburg, Virginia. A deduction is an allowable reduction in your taxable income, requiring you to pay taxes on a smaller portion of your income. Specific business expenses and charitable donations are customary 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 appropriate documentation to back them up.
How Can A Christiansburg, Virginia Tax Lawyer Help?
If you find yourself being audited in Christiansburg, Virginia, and are sure that you have done everything right in preparing your taxes, then the audit will likely be over rapidly, with no penalties imposed. In cases like this, if anything is found to be wrong with your tax return, it is likely the result of an honest mistake, and the auditor will be aware of this, and will likely give you an opportunity to correct your mistake, without suffering any penalties, with the possible exception of being made to pay interest on any back taxes you owe.
But, in more perplexing cases, chances are you would be well-served by a tax lawyer in Christiansburg, Virginia, to ensure that your tax audit goes smoothly.