Once you involved in a sales tax audit, you must understand that the taxing authority has broad powers as it relates to what documents they can request. If a state tax auditor requests data, you should produce it. If you don’t, there are consequences that are very unpleasant. Find out how much power the auditor has and how to navigate the process.
- Auditors have broad powers to ask for various documents and accounting records.
- The auditor is trying to get a complete picture of your business.
- You want to the auditor to understand your business. That understanding will help them determine if you are in compliance.
- You don’t have to agree with the audit results. There are administrative remedies available if you disagree with the audit results.
More Tips in The Sales Tax Sisters Academy
Our mission to provide a resource so business owners, accountants and bookkeepers can understand sales & use tax compliance. We know that sales and use tax laws are not the easiest to understand. Our focus is on empowering you with a framework and general understanding, so you know what questions to ask and where to go to get the information you need to stay on the right side of sales and use tax compliance.