Audit, Tax

Top 3 Basics About Income Tax Audits

Our fears can be overwhelming when a letter received comes from Internal Revenue Service (IRS). Getting a letter of notice doesn’t mean you’ve done something against the law. The IRS would only want to review the tax returns you have filed.

Upon receiving the notice, contact IRS immediately to avoid the second letter. Coordinate with the IRS and State department of taxation.

Failure to respond to the second notice could lead the IRS to make legal actions. Your account could be frozen, or you can go behinds bars. Avoiding income tax audits would not help.

 Top 3 Basics About Income Tax Audits

What Are Income Tax Audits?

In an income tax audit, IRS wants to confirm and verify your tax returns. Tax audits like to make sure that deductions from income are accurate. However, reports show that three-fourths of taxpayers paid more taxes and penalties after an audit.

Penalties include additional interests, civil penalty, and civil fraud penalty. The IRS will determine what sanctions would you incur during the process.

Additional interests may incur for that individual who failed to file tax returns on time. Taxpayers who also pay taxes late could have this type of penalty.

A civil penalty is for a person, business or a corporate entity. The Civil penalty incurred due to the incorrectness of data on their tax returns. The civil fraud penalty is for the underpaid taxpayers resulting in fraudulent activity.

Lastly, the criminal penalties like convictions for tax evasion after income tax audits.

How Are Your Tax Returns Selected for an Audit?

The odds of being selected if you are earning millions of dollars is 16 percent. Chances of being chosen for zero income is 5 percent. Selection may be through computer programs and statistical analysis.

Discriminant Function System is a computer program. Through the use of statistics, they determine the likelihood of accuracy of your tax return.

Unreported Income Discriminant Function is also a computer program. This system rate the possibility of having unreported incomes. The system would look into the income and spending habits of people.

The third is the Information Returns Processing System (IRP). The IRP is a computer system storing a tremendous amount of data from different stakeholders. IRP matches the report filed by the taxpayers.

Lastly, is the Audits of Related Entities. The IRS may audit related tax returns for your investors, business partners, and other individuals.

What Are the Three Basic Types of Tax Audits?

Maybe you have raised red flags that trigger an audit. Perhaps your personal income dropped abruptly or tremendous tax deduction from your business. There are three basic methods.

First is the correspondence audit. A correspondence audit is the most common type brought by a simple mistake.

Second is the field audit when the IRS comes to you. They may come to your home, workplace or related places.

Lastly, the office audit, when you are requested to pay a personal visit to IRS. You would likely meet the auditor and discuss some related matters.

 Everything You Need to Know About Income Tax Audits

Get Assistance and Help!

If you have an upcoming income tax audit and it’s stressing you, get help. Visit Sacramento Tax Attorney | Get Help Resolving Your Tax Issues | Rex Halverson & Associates. They have some lawyers with valuable experiences and offer a variety of services.

Don’t stress yourself out. Professional legal advice is vital for income tax audits. The initial consultation is free.

DUI, Employment Law

It can be a challenging situation if you’re ever caught driving under the influence of alcohol or drugs. You can get into a dire position and potentially cause a fatal accident. If ever caught at a checkpoint or pulled over in traffic, you’ll need someone to defend you.

Otherwise, you can have your driving privileges revoked or might even face jail time. Hiring a DUI attorney can be very beneficial for you. Attorneys know how to make a good defense for cases such as drunk driving.

But, what can a lawyer do for a DUI case? If you think hiring a lawyer isn’t necessary, you need to learn more about the advantages of having one on your side if you find yourself in the unenviable position of needing one.

What Can a Lawyer do for a DUI?

What Can a Lawyer do for a DUI?

So, what can a lawyer do for a DUI? Lawyers can do so much for you. In fact, they’ll be doing almost everything if not everything for you. The law is not easy to understand, and it’s challenging to get yourself out of the legalities.

It’s a very complicated system, one not easy to navigate, particularly without much knowledge about it. You might not know where to start. A DUI attorney can help guide you with what to do and what not to do.

They can help you prepare all the files and documents needed for your case. Most importantly, they can defend and refrain you from having severe charges. With an expert, you can be able to retain your driving privileges and freedom.


Where You Can Find Competent DUI Lawyers

There are many places where you can find competent DUI lawyers. You can ask questions of family or friends or search the internet. You can find many answers on the internet.

Search for those that have good reviews and can provide excellent services. Still, search for those that have affordable rates. RJ Harber Law Offices are noted examples of an agency that provides outstanding service at an affordable cost. Turn to them when you are charged with DUI.

Where You Can Find Competent DUI Lawyers

Don’t Do Everything on Your Own

There are many things to keep in mind when you are faced with a serious charge. An arrest can bring you to court. Know that all the people who are there will be well-prepared.

Meanwhile, if you are not prepared or have no one to represent you, the consequences can be very severe.

Hire a DUI attorney to work on all the legal matters for you. They are experienced in defending individuals charged with DUI.

A DUI lawyer can walk you through the entirety of the situation, from the moment you’re pulled over, arrest, booking, and all points beyond. They can help you with all the daunting paperwork to guiding you through the frequently confusing process.

A conviction can blindside you, and it’s even harder without an expert guiding and defending you. Don’t do everything on your own, be sure to hire a DUI attorney to help you out with your case.