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How to Maintain Compliance Documentation for Sales Tax Audits | TaxConnex

TaxConnex

Proper documentation allows auditors to interpret and verify your financial transactions accurately. This can lead to auditors assuming transactions are taxable, or making historical projections or arbitrary assessments of taxable sales. This separation helps in clearly identifying and tracking sales tax amounts.

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The new breed of audit

TaxConnex

In years past, auditors could show up at your door asking to look at your records. Many audits are conducted remotely, and an auditor never visits your office. Auditors can tap different data sources to select audits more accurately based on the level of risk, and to use new tools to automate the repetitive tasks of an audit.

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Top Tips to Prepare for an eCommerce Audit

TaxConnex

Unfortunately, there’s no playbook for determining the company profile that will attract a state’s auditors, but there are measures you can take to assess your exposure: Understand physical and economic nexus. ?Physical Also be careful who the auditor has access to and what areas of your business they have access to. First moves.

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Common Accounting Mistakes: Government Edition - Issue #8 Unallowable Expenses

SMBAccountant

These costs must be recorded in separate general ledger accounts to be easily identified and excluded from any billing. DCAA provides an excellent online reference tool, the Selected Area of Cost Guidebook, for contractors and auditors alike to review costs for allowability.

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Lovesac to Pay SEC $1.5 Million to Settle Claims of Hidden Expenses

CPA Practice

The scheme included Dellomo’s submission of a “false and misleading” management representation letter to Lovesac’s outside auditor, according to the lawsuit. The employee’s report triggered an internal investigation, the lawsuit said.

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Half a dozen ways to mismanage sales tax | TaxConnex

TaxConnex

General ledger management Your GL is a key reconciliation point to make sure you’re capturing all sales tax that you’re remitting and that you get the credits and adjustments you have coming, such as vendors’ discounts. Auditors will ask for data and any replated invoices. Double-check the presentation of your invoices.

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Six tips to respond to a sales tax audit

TaxConnex

One of your customers undergoing their own sales tax audit might unearth one of your invoices, resulting in the auditor possibly contacting you for a certificate of exemption or other documents. An audit of one of your suppliers could turn up one of your exemption certificates for something the auditor may think is taxable.

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