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Sales & Use Tax Tips for AUGUST 2007
Sales Tax Audits - Are you prepared?
Dealing with a Sales Tax audit can be intimidating and full of costly pitfalls. However, with proper representation, you can walk away from an audit with a favorable outcome. A field Sales Tax audit begins when an auditor contacts you by
letter or phone to schedule a pre-audit meeting. In this meeting, the auditor will typically:
- Present an audit authorization letter and other documents for you to sign.
- Explain what records are required to complete the audit.
- Ask you to provide additional information such as details of your accounting procedures.
To prepare for the scheduled audit, you will need to gather and organize various records that will be requested by the auditor. Auditors often request more than they actually need to see so it is best to have the information request
reviewed by a qualified Sales & Use Tax specialist.
Giving auditors too much or too little information is a quick way to get the audit off to a bad start. Too much information can potentially uncover liabilities that might otherwise have gone undetected and can also unnecessarily take up a
lot of your time; too little information might cause the auditor to be suspicious and increase the scope of the audit.
O&A can review the auditor's information request and help you narrow it down to what is absolutely essential. Also, prior to the audit meeting, it is generally a good idea to understand where you potentially have
Sales Tax Exposure and prepare associated defenses. This information will be useful for upcoming discussions about the audit approach (e.g., detail vs. sample), test period selection
criteria, projection methodology, etc.
Proper pre-audit planning will make the Sales Tax audit process move forward quickly and smoothly for everyone involved. Pre-audit planning can most efficiently be accomplished with the help of a Sales & Use Tax specialist. For more
information visit our Audit Assistance & Advocacy webpage.
* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.
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Should you have questions or require assistance please Contact us today or call 1-888-466-2829 to speak with an Olivier &
Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
