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Why Does the IRS Conduct Audits in Chicago?

— December 16, 2022

The government knows that there is the potential for giving to charities to be used as a way to avoid taxes.

Chicago, IL – Sometimes the Internal Revenue Service can look for more information about any taxes that were filed. This is especially true if the amount that was actually sent to the government seems to be much less than what they expected to collect. When these kinds of discrepancies happen, the government can conduct an audit and ask for a more thorough accounting of the individual or businesses’ financial situation. It is also more likely that people who are higher earners or large businesses will have to deal with an audit, as the government stands to lose more money in these situations if the proper tax amount is not paid. If the government thinks that the person should pay more after an audit or other actions, it is common for lawyers to negotiate a settlement to determine what amount will actually be sent.

When an audit is going to happen, it is beneficial to receive advice from local Chicago tax lawyers. They can provide advice about how to comply with the government’s request and any related legal issues. 

When the government notices mistakes

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It is possible that there are some kind of serious errors in the tax return that was sent to the IRS. This will cause the government to pay more attention to the return, as they do not want to risk losing money and letting the person get away with a much smaller tax burden just because of some kind of accounting or clerical error. The main problem with getting audited even after an honest mistake is that the government will likely be asking for more money through fines or other means. This makes it crucial for those who have the potential for tax errors to speak with Illinois tax lawyers. 

Issues with charities and donations

The government knows that there is the potential for giving to charities to be used as a way to avoid taxes. This is because giving to a charity can help with the overall amount of money that will be owed through certain types of deductions. In some situations, there have been individuals who have been dishonest about giving away large portions of their income to charity and this kind of excessive use of charity deductions can be potentially fraudulent. 

Other excessive work and business deductions

An easy way for both individuals and businesses to exploit the tax system is to claim large amounts of expenses for an office or other business needs. Tax lawyers can help review any claimed deductions so they do not seem excessive or unreasonable. 

Contacting a local attorney is a service that helps people find the right lawyer in their city or state. Anyone who needs assistance with the process of looking for estate planning lawyers or other attorneys can call 800-672-3103 for a referral.

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