Delaware County Tax Fraud Lawyers
Taxes are one of the few things that people all over the world have in common. Like other governments, the American government even has a specific department dedicated to collecting taxes. The IRS or Internal Revenue Service, keeps a close watch on each person’s tax returns. They do the same for companies. Taxes are due at certain times of the year. At some point in mid-April, private individuals and those who own companies are required to file federal taxes. For some people and business owners, filing a tax return is a relatively simple matter. In other instances, such as those who owe a great deal of taxes, people who live in one state and work in another or people with highly specific tax needs, filing taxes may be a highly complicated matter. It can take yards of paperwork and a great deal of effort to file their taxes properly.
Issues That Can Arise
IRS officials are careful to examine tax returns. Sometimes, they may choose to conduct what is known as an IRS audit. The audit may be conducted on a random basis purely by chance. However, in other instances, audits may be done for other reasons, such as officials suspecting there is issue with some kind of potential tax fraud.
Certain things can raise red flags when filing a tax return. For example, another company have reported income in your name but it is not listed on your returns. A person may be claiming to have made a large donation to a charity that is out of the ordinary for their personal financial circumstances. People can also run into possible closer scrutiny from the IRS because they are self employed and deducting a lot of losses or because they are claiming a home office deduction. Filers who make math errors may also be at risk from extra IRS attention.
The same issues can arise for people filing on behalf of a business. A business owner may make minor errors when reporting income or deciding which deductions to claim. IRS officials tend to look closely at certain companies if there’s been any sort of issue with fraud in the past or if those currently working there have a history of fiscal misconduct.
When being examined in this way, keep in mind that the IRS has power over this area of law. Officials can impose fines up to half a million dollars. People who are found to have deliberately engaged in tax fraud can face prison time. Professionals who engage in this form of fraud may be facing the loss of a professional work license. There are things that people can do in order to fight off charges and satisfy any potential accusations from the IRS.
An audit may sound scary but it doesn’t necessarily mean the person is guilty of anything. Bear in mind that most audits are purely by chance. The IRS will pick out a random person to audit and examine their refunds in greater detail. Now is not the time to panic or worry. However, it is time to be aware of your rights and your responsibilities. You may be asked to provide highly specific documentation. Have these documents on hand as soon as possible. The IRS will accept certain types of electronic documents as well as paper copies.
You can ask for additional time to get things together for the agency. In most cases, an audit will only go back no later than three years. If you are afraid there might be an issue of tax fraud, now is the time to seek immediate legal help from Delaware County tax fraud lawyers. They can help you make sure you are following all necessary rules and regulation that pertain to your case. Lawyers can also suggest a vigorous defense in the event there might be an issue with your tax returns.