Tax Audit Lawyers in Burlington
A "tax audit" is a procedure in Burlington, Wisconsin 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 normally 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.
The procedure of being audited in Burlington, Wisconsin is normally pretty simple. If and when the tax authorities decide to audit you, they'll send you a letter in the mail detailing what's about to happen. If you receive such a letter, it's extremely important that you make sure it's authentic. Sometimes, scam artists will send fake audit notices to people, claiming that they owe the government money. They will then collect their "taxes" and disappear. You should do an internet search for the name of the tax authority that the letter claims to represent, and call them to verify that you are being audited.
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 Burlington, Wisconsin
There are many different reasons why the federal government, or the tax authorities of Wisconsin might decide that a tax audit is warranted in your case.
As discussed earlier, an audit might occur due to a taxpayer being randomly selected. If this happens to you, and you have been straightforward on your tax returns, it's unlikely that you'll have much to worry about.
However, some people in Burlington, Wisconsin 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 Burlington, Wisconsin. 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 Burlington, Wisconsin 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 Burlington, Wisconsin. 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 minimal bit of interest, without incurring any additional penalties.
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 Burlington, Wisconsin may be necessary to ensure that the process is as painless as it can possibly be.