Best Practices for Managing a Sales Tax Audit

Free whitepaper that will help you prepare for any sales tax audit that may come your way.

Are You a Target for a Use Tax Audit?

Keeping track of and remitting use tax: it’s one of those items that can get pushed far down the list of priorities and disregarded. But it should not be!

So You’ve Been Notified of a Sales Tax Audit – Now What?

Being audited can be scary. But instead of feeling defenseless, there are steps you can take to manage the audit and take control of the process.

Record Retention Requirement Does Not Limit Authority to Obtain Audit Records in North Dakota

North Dakota issued an opinion stating that the record retention requirement imposed on a retailer doesn’t limit the Tax Commissioner’s authority to obtain the records necessary to audit a taxpayer.

New Jersey Releases Audit Procedure Manual

The New Jersey Division of Taxation released a manual of audit procedures providing general audit guidance for the Division’s Audit Branches and taxpayers . It will be updated periodically to reflect changes.

Rhode Island Introduces Self-Audit Program

Rhode Island introduced a self-audit program for consumer’s use tax. More…

Michigan Extends Statute of Limitations

Michigan has enacted legislation that provides additional time periods for extending the four-year statute of limitations during which the Department of Treasury can assess Michigan corporate income tax, personal income tax, sales and use tax, and miscellaneous tax deficiencies, interest,…

Louisiana to Phase Out Audit Protest Bureau

Effective June 30, 2013, the Louisiana Department of Revenue (DOR) will phase out its Audit Protest Bureau (APB) for purposes of all taxes administered by the DOR. In the upcoming months, the APB staff will continue to work on its…

Requirements Added for Third Party Audits of Sales and Use Tax in Louisiana.

New requirements have been added regarding contracts entered into with private agencies or auditing firms for the auditing of sales and use tax in Louisiana. Among the new requirements are the following: Upon the completion of an examination or audit…

New York City/State Allows for Unified Program

A revised Statement of Audit Procedure (“SAP”)has been issued by the New York City Department of Finance, discussing the Unified Program associated with the Voluntary Disclosure and Compliance Program (“VDCP”). The unified program allows taxpayers that are delinquent for both…

New York Upholds the Observation Test Audit Method

The observation test audit method was upheld against a restaurant taxpayer, who failed to provide any books or records for the audit. When the taxpayer did not provide sufficient records, the auditor notified the taxpayer that an observation test would…

New York Affirms Test Method Accuracy

A New York corporation petitioned the state over the methods used in the audit of their business. The Division of Taxation requested a number of documents for an audit and the corporation did not produce all of the documents requested,…

Wyoming upheld that audit estimates are legal.

In a recent Wyoming appeals case it was upheld that the Department of Audit’s use of estimates to determine tax owed was legal in some instances. Wyoming law states that if a taxpayer’s records are insufficient, an auditor can use…

Pennsylvania auditors have been given the authority to grant credits when it is found that the taxpayer has overpaid taxes.

For assessments issued on or after November 19, 2003, an auditor may grant a credit for overpayments. If the taxpayer believes that tax has been overpaid during the period under audit and the auditor will not grant a credit, the…

Connecticut explains its managed audit program and more.

Connecticut’s Department of Revenue Services has released a bulletin (IP 2004(11)) describing the department’s managed audit agreement, managed compliance agreement, and direct payment permit programs. Information included in the bulletin includes criteria for who qualifies for the programs, benefits, procedures,…

California has reenacted its Managed Audit Program.

It is scheduled to be operative January 1, 2004. At the discretion of the State Board of Equalization (SBE), and consistent with the efficient use of audit resources, taxpayers who meet the following criteria could be considered candidates for a…

Illinois Certified Audit Program uncertain.

There are distinct uncertainties regarding the future of the Illinois Certified Audit Program (CAP). The program is designed to allow Illinois firms to hire an outside firm to audit their sales and use tax returns, and in return, have the…

Florida is piloting a “”managed audit”” program.

The Florida Department of Revenue will allow taxpayers to choose an auditor trained through the Florida Institute of CPAs to conduct and audit of state and local sales and use taxes. The taxpayer pays for the audit, but the DOR…