Santa Clarita Tax Audit Lawyer

Santa Clarita Tax Audit Lawyer

Santa Clarita is officially designated as the City of Santa Clarita since it is Los Angeles County’s third largest city and the eighteenth largest in California. However, Santa Clarita was not incorporated as a designated place until 1987. In fact, Santa Clarita is an archetype of a U.S. edge city as Santa Clarita has annexed several unincorporated areas leading to a boom in population. In both a reflection of the desirability of the area and a motivating factor for further population gain, in 2006, Santa Clarita was ranked as the 18th best place to live in the United States.

Santa Clarita has rapidly become a hub of activity just a little over 30 miles from downtown L.A. While Santa Clarita is often associated with its largest employer, Six Flags, and the company’s Magic Mountain theme park, there are many other economic opportunities in the area for residents.  Princess cruises, the Henry Mayo Hospital, Quest Diagnostics, and the Master’s college are all major employers in the area.

As such an appealing place to live close to Los Angeles, Santa Clarita may be subject to additional scrutiny from the IRS because of the prosperity of its residents. If you have been contacted by the IRS about a tax audit the Hoffman Law Offices can help. To schedule a free consultation call us at 800-897-3915.

Why Would the IRS Choose to Audit Me? I Know Other People Have Tax Problems Too.

One of the most common questions that prospective clients often ask is some variation of, “Why me?” Some people may feel that they are being punished for an honest mistake or that their noncompliance, “wasn’t a big deal.” Others who may have suspected that something wasn’t quite right with their taxes may wonder why they were targeted when there are so many other people, with greater incomes, available for the IRS to audit.

paperwork tax

In truth, there are a broad array of reasons why a taxpayer might be selected for an audit. One of the most straightforward reasons is that a computer selected them for a random audit. In situations like these, the taxpayer may not have a specific fear or concern, but they may worry about what specially trained IRS agents can uncover. In any case, it is often prudent to have an experienced tax lawyer review your finances and guide you through the audit. Working with an experienced attorney can eliminate much of your anxiety about the process.

In other circumstances, a taxpayer may be selected for audit due to specific factors.  For instance, the taxpayer may have forgotten to include income from a 1099 on his or her taxes. The IRS would notice this missing document because it matches 1099s and other income reporting forms. The IRS is able to do this because an employer sends one copy of the form to the IRS and one copy to the employee or contractor. If the form’s counterpart is missing, then it is a clear sign that either the employer or employee failed to make a full disclosure. This type of situation can result in an audit for all parties connected to the filing failure.

What will happen during my audit?

The exact audit procession face will depend on whether you are facing a federal audit by the IRS or a state-level audit by the appropriate state agency. For federal tax audits, they can be held in-person or through the mail. Typically, more serious suspected problems are addressed through an in-person audit held at the location where your records or your business’ records are routinely stored. If you made a minor error or forgot to include some information, a mail-based audit is a possibility.

The taxpayer should locate and obtain all relevant financial records for the audit. The taxpayer should locate records related to his or her assets. These types of records must typically be retained for the duration of time where the taxpayer maintains ownership of the asset, plus an additional three years. If the audit concerns a business, payroll records are also necessary. Payroll records must be kept and stored in an accessible location for a minimum of four full years. Finally, the taxpayer should locate and obtain all tax records. Taxpayers are required to keep their tax files and records for a minimum of six years.  An experienced attorney can help you make sense of this information as it relates to the taxing authorities allegations.

Rely on my Tax Experience for a Tax Audit

If you have concerns or questions about your tax audit, the Hoffman Law Offices may be able to help. We fight on behalf of our clients and work to eliminate or mitigate serious tax consequences. To schedule a free tax consultation, call 800-897-3915 or contact us online today.