Facing a state sales tax audit?
A state sales tax audit can happen to anyone, even the most tax-compliant among us. When people get a notice for sales tax audits, the first natural response is usually fear, as they don’t know what to expect.
A state sales tax audit can be random but it can also be very specific and intentional, due to discrepancies found in the information you provided on your tax return. This is why you need sales tax audit help as an individual taxpayer or business owner.
The job of a sales tax auditor is to examine and scrutinize the financial documents of your company to check if the right amount of sales tax was paid to the proper tax authority.
A good sales tax audit defense team understands how a sales tax auditor works and therefore, is in a better position to guide you through the process.
How should I prepare for a tax audit?
The best way to prepare for a State sales tax audit is to make a move even before you get an IRS notice for sales and use tax audit. Ensure that your calculations and records are accurate.
Isn’t that a no-brainer? You may ask. Yes, it is. However, we still have to mention it because many companies get into complicated audit issues over little errors here and there. A little miscalculation or minor error like charging the wrong rate on an invoice, or a serious mistake like not remitting taxes that were collected can land you in serious trouble.
Although, there is no sure way to ensure that you do not get audited, filing your tax with accuracy and precision greatly decreases the chances of that happening because auditing questions stem from the information on your records. You should know that a state sales tax audit can get more complicated and dramatic if the auditor finds more reason to probe you during the process of the state sales tax audit.
If you have problems filing your taxes the right way by yourself, you should definitely hire the service of a tax professional who will be responsible for ensuring that you remain tax-compliant.
It is not unnecessary to hire a professional to file your taxes; a good tax professional is worth his fee, and will save you from untold hardship. Contact us today if you’re in need of someone to help you with filing your taxes.
A few other ways to prepare for a tax audit
- Do your audit first.
If you have been selected for a sales and use tax audit, ensure that you do not sit before the auditor unprepared. If you filed your taxes yourself, then you’re the best person to analyze and scrutinize them. Check for adjustments and mistakes. It will be easier to answer questions and make explanations to a sales tax auditor when you already know what they’re talking about and have planned for it beforehand.
Doing your own audit before facing a sales tax auditor goes a long way to help. But you do not have to do it yourself if you don’t want to; you can get a sales tax audit defense team who will serve as your pre-auditor.
- Don’t volunteer information.
When you’re being audited by the state, you will be required to provide some information. Do not hesitate to grant the sales tax auditor access to whatever information they seek. You don’t want to seem like you’re hiding things, as this is will only raise more suspicions.
Nevertheless, the fact that the law demands that you give a sales tax auditor the information they ask for, does not mean that you have to give them everything or tell them anything they haven’t asked. Avoid oversharing; it can complicate your state sales tax audit.
- Know what you’re allowed to do.
The fact that you are being audited by the state does not mean you have zero control. There are things that you’re allowed to do to make the process easier for you. However, you can not take advantage of these windows you have if you do not know what they are.
One of the things you’re allowed to do during a sales tax audit is negotiating terms. You are allowed to negotiate the start date for the audit, the selected date range, and missing documents.
You can effectively use this to your advantage by getting help from a tax professional. This leads us to our next point.
- Get sales tax audit help
Getting help from a professional makes the whole state sales tax audit process easier. We at Souri, Gazda, & Co. are equipped with the right skills, and experience to help make your audit process easy. Call us now.
We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need to overcome your tax debts and be well on your way to financial freedom. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at [email protected].
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