A Whitepaper by Scott Schwertner and David Dunn
Sales tax audits are inconvenient, overwhelming, and can possess the potential of additional sales tax bills if not properly navigated. Successful handling of these audits requires preparation and understanding of the audit process, which can be cumbersome when dealing with nuances from several different states. Overall, it is critical you understand your business, accounting systems, and the taxability of the products and services you sell. More importantly, knowledge of all local sales tax laws, tax policies, audit procedures, and sampling methodologies allows you to effectively manage audits and maintain a degree of control during the process. If you are prepared, professional, and knowledgeable, effectively communicate the audit process will be smooth with an increased likelihood of a favorable outcome.
If you are not confident, lack the requisite sales tax audit knowledge for the local taxing authority in question, or feel overwhelmed with the audit process, you should seek the advice of an experienced sales and use tax team for audit defense services. A qualified sales and use tax professional can help manage the audit process, reduce potential audit liabilities, and identify potential tax refunds.
From more than thirty years of successfully navigating sales tax audits in all 50 states, our team has figured out not only the simplest course of action to yield optimal audit defense results; we’ve also mastered how to best navigate the process in a way that both addresses our clients’ concerns and satisfies the local taxing authorities, providing a smooth sales tax audit process for all parties. When engaged early in the process our team of professionals can help ensure that our clients only pay what is legally due.
This whitepaper contains a simplified version of the sales tax audit process nationwide, followed by some recommended Do’s and Don’ts, from Invoke Tax Partners’ experienced team of Sales and Use Tax Consultants. Our goal with this document is to provide audit defense guidance from some of the nation’s most regarded sales and use tax consultants. For further questions and a detailed approach to audit defense for your sale tax audit, please contact our sales and use tax team.