Tax Audit Lawyers in Holmen
A "tax audit" is a procedure in Holmen, 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 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.
The procedure of being audited in Holmen, Wisconsin is typically 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 stated 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 Holmen, Wisconsin
A tax audit in Wisconsin can be performed for almost any reason at all
As considered earlier, an audit might happen due to a taxpayer being randomly selected. If this happens to you, and you have been forthright on your tax returns, it's unlikely that you'll have much to worry about.
But, some Holmen, Wisconsin tax audits happen for a particular reason. This is typically because the IRS or your local tax authority suspects that you have not reported all of your income on your tax return. For instance, suppose that, last year, you bought an expensive new luxury car. But say you only claimed ,000 in total income that year. As you might imagine, the IRS is going to be quite interested in finding out where the money for that car came from, and, if you have enough money to buy it, why you aren't paying taxes on that money.
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 Holmen, Wisconsin. 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 Holmen, Wisconsin Tax Lawyer Help?
If you experience an audit in Holmen, Wisconsin, 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 typically 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 complicated than a simple misunderstanding. In these cases, a good tax attorney in Holmen, Wisconsin may be necessary to ensure that the process is as painless as it can possibly be.