Receiving a notice from the state that a sales and use tax audit is about to begin can be unsettling. Not only is there concern about potential exposure, but will you and your team have the time to dedicate to the audit when you are already stretched with day-to-day responsibilities?
At State Tax Resource, we view audit management as a process that is both an art and a science. The goal is to work with the auditor to verify that the correct amount of tax has been paid. This requires a thorough understanding of your business and systems, state tax laws applicable to your industry and audit methodology, including sampling techniques.
A relatively new development is the advent of self-audits, which require a taxpayer to review its own filings and to identify purchases made where no sales or use tax was paid. With expert advice, you can verify that you have correctly remitted tax due or take advantage of penalty or interest free opportunities to resolve outstanding liabilities.
There are opportunities for an audit to get off track from the first meeting with the auditor, through the sampling process, to a taxability determination and potential protest. Having an experienced sales tax consultant represent you provides the peace of mind that the audit will be conducted in a professional and time efficient manner and the result will fairly represent the tax due.