Sales Tax Audits & Defense

Sales Tax Audits & Defense

With many states looking to close budget gaps, state taxing authorities look to audits as revenue sources. Audits can create resource burdens for any company. Even when you do everything right, you may still have to prove it, which takes time away from your employees.

Yet, there are ways for companies to reduce the risk of being audited, minimize the economic impacts of audits, and shrink compliance and defense costs.

You don’t have to get ready for a sales tax audit alone. The recovery specialists at PMBA help clients every day navigate the turbulent waters of a sales tax audit. With an expert and experienced team on your side, you’ll be able to quickly and successfully conclude a sales tax audit.

 

Why Companies Get Audited

It’s not uncommon to ask why the state selected your company for audit. Even businesses that prudently complete their tax filing requirements get audit notices from the state taxing authorities.

Although some businesses are selected due to random luck, often there are underlying reasons that are easy to point out. Sales tax audits commonly initiate when:

  • A company is large and completes a large volume of business in the state or experiences rapid growth;
  • There are indications of non-compliance that can include improper registration, past penalties or assessments, or failure to file returns on time;
  • An ongoing audit of a vendor or customer triggers an audit for your company;
  • Exempt sales volume increases quickly.
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    Sales Tax Audits for Small Companies

    Owners of small companies may panic when they receive an audit notice. Many owners may not know if their business is correctly complying since they rely on their bookkeeper to submit sales tax returns. Quickly enlisting professional help is your key to success.

    If time allows, our audit experts will visit you as soon as you’re notified of an upcoming audit. This gives us time to explain the audit process, review your returns and records, and develop recommendations for working with auditors before they arrive on site.

    During the audit, we’ll monitor the audit’s progress, address all questions asked by the auditors, and answer your questions as they arise while keeping you informed at every step along the way. You can continue to focus on your core business activities, knowing that our audit defense experts systematically work to minimize taxes and reduce or eliminate penalties.

    Sales Tax Audits for Medium-sized Companies

    If your company has survived sales tax audits unscathed, you’re already well aware of the audit process and how to handle state auditors. But when an assessment is levied, or a penalty is charged, our experts can negotiate to reduce or eliminate these fees. Obtaining exceptional results for clients is a hallmark of our practice.

    Our audit consultants have decades of experience uncovering sales tax refunds. We are experts at identifying, filing, and collecting refunds for clients. In the past 20 years, our team has completed over 300 sales tax examinations and successfully secured over $300 million in refunds for clients due to overpayment of sales tax.

    When the audit is complete, if our team identified any processes that could be improved, we’ll design an action plan that you can use to reduce the likelihood of future audits, saving you time and money.

    Sales Tax Audits for Large Companies

    Even with a dedicated tax department, large companies can still benefit from sales tax audit consultants’ expertise. Your tax team may be busy with their everyday tasks, leaving little time for the attention to detail required to navigate a sales tax audit successfully.

    Having a second set of eyes can provide confidence that your company isn’t overpaying and is receiving all eligible tax credits so you can protect assets and maximize cash flow. Using specialists with deep domain expertise in sales tax laws allows you to leverage on-demand tax resources, ensuring your audit defense is up-to-date with current rules and regulations.

    The best defense is a good offense. Being fully prepared before the auditors arrive, our consultants can help your team organize documents, including sales tax exemption or resale certificates, and assist in preparing any requested documents.

    Sales Tax Audit Defense and Support for You

    Our sales tax defense experts take the lead when it comes to your audit. We act as your single point of contact and work directly with the auditors, so you don’t have to. Drawing on our decades of experience, we know how auditors think and how to answer every question they ask, giving you peace of mind.

    We dive into the details using state of the art data analysis software and review all documents the state’s auditors prepare, recomputing liability and assessment values for accuracy and completeness. Since auditors tend to focus more on liabilities than refunds, we’ll comb through all your records to look for refunds or credits and provide our findings to the auditor.

    From the pre-audit review and planning through to the settlement or appeals process, you can trust our dedicated team to be by your side from start to finish.

    Uncovering Overpayments with a Reverse Sales and Use Tax Audit

    The complexity of state tax laws makes it challenging to know what’s taxable and what’s not. And erring on the side of caution and paying more tax to avoid costly penalties and interest strips your company of hard-earned profits.

    We start by understanding your business and use our comprehensive approach to break down your business into cost centers to ensure you’re benefiting from all available sales tax exemptions. This unobstructed approach and multi-state expertise ensure your company pays no more than it owes.

    Your Trusted Sales Tax Audit Specialists

    Whether this is your first sales tax audit or your twentieth, rely on the expert team of sales tax audit specialists that have helped hundreds of companies recover over $300 million in sales tax credits and refunds.  

    We’ll help you through your audit and provide recommendations to maintain future compliance for continued savings. And our flexible fee system offers cost-effective options to maximize value further.

     

    Discover the PMBA Difference

    Our sales tax experts combine decades of in-the-field experience to ensure 100% client satisfaction. We’re ready to solve your sales tax challenges with the professional, personalized, and attentive service you expect from a boutique firm.

    Contact us today for your complimentary 30-minute consultation where you’ll receivable actionable steps you can implement immediately. Let us be your trusted audit partner.

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