Sales Tax Audit Representation Will Help You Mitigate Risk and Reduce Stress
Sales tax audits or use tax audits can be intimidating, undesirable, and time-consuming events. Having experienced sales tax audit representation is extremely helpful. Agile Consulting Group can mitigate the risk associated with sales tax audits and reduce the burden and stress on your in-house staff. We have extensive experience working with state revenue agencies and auditors and can frequently reduce or eliminate the assessment your company is facing.
Tax Audit Representation: Our Approach
At Agile Consulting Group, we believe that sales tax audit defense should have a two-pronged approach.
Review the State’s Workpapers & Schedules
First, you must review the state’s workpapers and schedules to be sure you’re in agreement with any liabilities or deficiencies that have been identified.
Quantify All Potential Sales & Use Tax Refunds
Second, all potential sales and use tax refunds should be quantified and included in the audit. Frequently, lack of documentation is the primary reason why items are erroneously taxed by state auditors.
Accounts payable records from several years ago often aren’t in perfect order – invoices or supporting documentation may be missing. If we can’t find what we need in your records, we will contact your suppliers and vendors to gather relevant documents that they may have available.
Agile Consulting Group: Our Impact
State auditors often do not look to identify overpayments that would yield sales tax refunds. In our sales tax audit representation, we work to identify those overpayments and have them included to offset liabilities and penalties. Refunds identified during the course of a sales tax audit are timely and valuable because of the offset they provide to any liabilities identified by the state.
We will handle all communications with auditors and work with you to develop an audit plan after performing our own initial audit review to identify both areas of exposure and opportunities. We have a proven track record of turning initial audit assessments into refund recoveries – what a great thing to go from owing the state for unpaid sales and use taxes to receiving a refund check from the state for overpaid taxes.