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Sales and Use Tax
Audit Defense FAQs

Your Sales Tax Audits questions, answered.

Sales and use tax audits can be complex and time-consuming.
Our audit defense services are designed to protect your business, minimize risk, and ensure compliance.

What is a Sales & Use Tax Audit?

A Sales & Use Tax Audit is a review by state taxing authorities to verify whether a business has properly collected, reported, and remitted sales and use taxes.

What triggers a sales tax audit?

Common triggers include late filings, missing exemption certificates, inconsistent reporting, large refund claims, or operating in multiple states with different nexus rules.

How do I prepare for a sales tax audit?

Preparation involves conducting a pre-audit review, organizing exemption certificates and invoices, reviewing nexus obligations, and having experienced professionals represent your business.

How long does a sales and use tax audit take?

Audits typically last from a few months to over a year, depending on the size of your business, the states involved, and the complexity of your transactions.

Can I reduce penalties or liabilities during an audit?

Yes. With proper documentation and experienced representation, businesses can often reduce or eliminate penalties and negotiate more favorable outcomes.

Should I hire a professional for audit defense?

Yes. Professional representation helps control the scope of the audit, manage communication with auditors, and reduce your potential tax exposure.

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