Your Guide to Random Audits in Utah

Let’s say you have a bankruptcy case ongoing. Suddenly, you receive notice that the United States Bankruptcy Administrator has given a directive for you to undergo an audit. What do you do? In this instance, the best thing for you to do is to get in touch with a Utah bankruptcy attorney.

What is a Random Audit?

This type of audit is specifically designed to check for any fraud, abuse, and error within the system of bankruptcy cases. The goal is to be able to find any existing loopholes so that better deterrents can be created, with stronger criminal penalties.

A random audit is usually one case selected by the Bankruptcy Administrator out of every 250 active bankruptcy cases in each federal judicial district.

Being selected for a random audit during a bankruptcy case is generally few and far between, but the ones that do get selected usually turn out to have significant anomalies in their statements.

What happens in an audit?

In case you do get selected for a random audit, it is highly recommended that you get in touch with your bankruptcy attorney Taylorsville Utah at the soonest possible instance. Documents will need to be presented upon request by the audit firm, select items from which will then be compared with the bankruptcy papers you originally filed.

These documents may include, but are not limited to, tax returns, credit card statements, and bank statements. The audit must be completed within 21 days, and the findings will be filed with the Bankruptcy Court as a Report of Audit, or Report of No Audit. The Bankruptcy Administrator will also be given a copy.

How can a lawyer help if there are any issues?

A bankruptcy attorney Taylorsville can help ensure compliance, especially with the requirements that the auditors ask for.

Utah bankruptcy lawyers, such as Alta Legal, can help you pass the audit, and continue on with your bankruptcy case without any more complications. Not only can lawyers resolve problems related to your case, but they can also anticipate it, which should make things a whole lot easier for you.