Various factors like discrepancies in returns, high sales volume, or changes in business activities. From to time-to-time tax jurisdictions focus on specific industries due to rates of non-compliance in the industry and ambiguity in the tax laws.
Depends on complexity but can range from weeks to months.
Sales records, invoices, purchase orders, exemption certificates, and sales & use tax returns supporting schedules and documentation.
Information about your business, sales records, tax calculations, and compliance procedures.
No, consult your tax professional first. You have the right to refuse unreasonable requests.
You can negotiate or appeal the assessment with documentation and justification.
Penalties depend on the nature and intent of the error. Cooperation and proactive correction can minimize penalties.
Audit assessments are typically charged interest on any assessment calculated. This amount can be negotiated down and often completed waived.
The auditor will issue a report with findings and potential tax adjustments.
Not immediately. You have the right to review, appeal, or negotiate the terms with the tax authority. If necessary, some states allow payment plans.
Maintain accurate records, comply with tax laws, and seek professional guidance for complex transactions.
