What are the Common Income Tax Audit Problems?
Many New Yorkers, who are accountable to an audit by the IRS, tend to face a lot of problems regarding managing their finances. In fact, these problems are very common and tend to occur time and again. Therefore, it is advisable to hire the help of New York tax attorneys to steer clear of them. If you are not aware of any of these problems, here is a quick list–
1. One of the most common problems is that people lose receipts that help in tax deductions. It is advisable to stock all the important receipts carefully since they help lower your tax liabilities significantly. In case you can’t find one, try to prove your expenses with an affidavit.
2. At times, even after appealing for the money that you owe, the IRS may not buy it. In that case, you can file a tax court petition in order to take the appeal process to the next level. Though this involves a lot of hassles, but it’s worth the effort as you won’t have to pay the money that you owe.
3. Sometimes, people pay the money that they didn’t owe. This usually happens due to lack of understanding of the appeal process. In situations like this, you can claim a refund within two years of making the mistake. If you don’t get the cash back, consider hiring professional New York tax attorneys as they will be able to get you a fair judgment.
4. If you have been told that your business is a hobby and therefore the tax deductions won’t be applicable for you, try to prove your motive for profit. You need to convince the IRS that yours is a business, and not only a mere hobby.
While these are some of the most common tax audit problems, there are many more unique problems as well, all of which can be best handled by experienced New York tax attorneys.
1. One of the most common problems is that people lose receipts that help in tax deductions. It is advisable to stock all the important receipts carefully since they help lower your tax liabilities significantly. In case you can’t find one, try to prove your expenses with an affidavit.
2. At times, even after appealing for the money that you owe, the IRS may not buy it. In that case, you can file a tax court petition in order to take the appeal process to the next level. Though this involves a lot of hassles, but it’s worth the effort as you won’t have to pay the money that you owe.
3. Sometimes, people pay the money that they didn’t owe. This usually happens due to lack of understanding of the appeal process. In situations like this, you can claim a refund within two years of making the mistake. If you don’t get the cash back, consider hiring professional New York tax attorneys as they will be able to get you a fair judgment.
4. If you have been told that your business is a hobby and therefore the tax deductions won’t be applicable for you, try to prove your motive for profit. You need to convince the IRS that yours is a business, and not only a mere hobby.
While these are some of the most common tax audit problems, there are many more unique problems as well, all of which can be best handled by experienced New York tax attorneys.