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Managing a sales and use taxaudit can be challenging. First, you should always anticipate an audit – even if you’ve never beenaudited before. While they are definitely becoming more frequent as states try to crack down on economic nexus laws, rarely are you given advanced notice as to when an audit will occur.
In years past, auditors could show up at your door asking to look at your records. Usually, you learn about an audit through a notice or letter from the state or jurisdiction in question with instructions on how the audit will proceed. Many audits are conducted remotely, and an auditor never visits your office.
sales taxaudits ?were sales taxaudits to become more common over the next two years. of respondents said they believe audit levels?will already seen an increase in the number of audits in the past two years. evidence of tax jurisdictions’?ramping ramping up audits remains?anecdotal,?but
What triggers a sales taxaudit and how do you reduce the risk of an audit? Almost all companies undergo a sales taxaudit at some point. This sales taxaudit guide can help indirect tax teams avoid common audit triggers and manage the sales taxaudit as smoothly as possible.
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