Oh no! You’ve just received a notice from your state government, informing you that your business has been selected for a sales tax audit. Even if you’ve knowingly paid all your taxes, an audit is still an incredibly time consuming and stressful process. Upon receiving your notification of a sales tax audit, tax departments and business owners find themselves overwhelmed and asking themselves, “What do I do now?” The good news is that there are steps businesses can take to effectively prepare themselves and make the auditing process as painless as possible.
Dealing With Auditors
Sales tax auditors aren’t your enemy, but that doesn’t mean they’re your friend either. When dealing with sales tax auditors, always keep things professional. Dragging your feet or being hostile will only make things worse but business owners shouldn’t mistake their auditor for someone who’s just there to give them friendly advice, either. At the end of the day, the auditor’s job is to audit and assess monies for the state; monies that they’re going to be looking to take from your business.
Understanding the Auditing Process
As most corporate tax departments and business owners will tell you,state governmental tax regulations can be incredibly complicated. The auditing process is no exception: there are a lot of rules as to what type of sales and purchases constitute a tax exemption from sales and use taxes. what information business owners need to provide to auditors, what information they can request, the time limits in which appeals can be filed and the process for doing so, along many other details. An audit can be difficult for tax departments and business owners to manage; especially when they’re already feeling the stress of having tax auditors going through their books and records
If you’re facing a sales tax audit and you need help to make it through the process with your business and your sanity intact. An experienced sales and use tax practitioner can provide your business with the expertise that your company may be needing. A good tax practitioner will ensure the auditing process go as smoothly as possible, while at the same time protecting your business and your bottom line.
State Tax Group, LLC is the leader in sales and use tax laws for various industries, our firm specializes in audit representation. You don’t have to face an audit alone – contact us today at 972-239-5880 for a free consultation.