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Sales and Use Tax
Consulting FAQs

Your Sales and Use Tax Consulting questions, answered.

Our Sales & Use Tax Consulting FAQ provides clear answers to common questions businesses face when navigating complex tax rules and compliance requirements.

What triggers a sales and use tax audit?

A sales and use tax audit is often triggered by discrepancies in reporting, filing errors, or patterns that suggest underpayment. States may also target businesses based on industry, size, or information shared through vendor or customer audits.

How can I prepare for a state sales tax audit?

Preparation begins with accurate records. Maintain detailed invoices, exemption certificates, and proof of remittances. Many companies work with consultants like Source Advisors to conduct pre-audit reviews and identify potential risks before the state auditor does.

What’s the difference between sales tax and use tax?

Sales tax is charged at the point of sale on taxable goods and services. Use tax applies when taxable items are purchased without sales tax (for example, from out-of-state vendors) but are used, stored, or consumed in your state.

How do I know if my business has overpaid sales tax?

Overpayments are common in industries with complex transactions. Refund reviews conducted by tax consultants can uncover misapplied exemptions, duplicate payments, or misclassified purchases — often resulting in significant recoveries.

Can sales and use tax consultants help me recover refunds?

Yes. Consultants like Source Advisors not only identify overpayments but also file refund claims and work directly with state taxing authorities on your behalf to recover funds efficiently.

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