Sales Tax Audit

Join Dan Thompson, CPA, CMI, on August 13th to gain a better understanding of the intricacies of navigating a Sales and Use Tax audit from start to finish.

States rely on sales and use tax audits to ensure compliance among registered taxpayers. With the rise of remote sellers post-Wayfair, states are auditing more than ever to ensure applicable businesses are registered and are complying with sales and use tax collection rules and regulations.

It is now more important than ever to understand the entire process, from selection through appeals, and how to expertly navigate a sales and use tax audit. This webinar will give you the inside scoop on how to identify the important factors involved in state sales and use tax audits and how to communicate and work with taxing jurisdictions. 

Please join us! 

If interested, please contact Lori prior to registering at [email protected] for a 50% off discount code.

The Inside Scoop of Sales and Use Tax Audits – Live Webinar | Lorman Education Services

As a business owner in California, it is important to be aware of the upcoming deadline for the 135% sales and use tax prepayment, which is due on June 24th. This prepayment is meant to help the state manage its cash flow and ensure that its tax revenue is received in a timely manner.

Why Is It Important to Stay Updated with Tax Deadlines?

Staying informed about tax deadlines and requirements is essential to running a business. By meeting the obligations set forth by the state, companies can avoid unnecessary complications and maintain good standing with the tax authorities.

Next Steps

Eligible businesses should make the necessary arrangements and submit the prepayment on time to avoid penalties and interest. You can refer to the instructions provided by the California Department of Tax and Fee Administration (CDTFA) or consult with a tax professional, such as Thompson Tax, for guidance on calculating the prepayment amount.

Reach out to us today! We are your Trusted Tax Advisors and are always just a phone call away.

Colorado’s Retail Delivery Fee (RDF), which took effect on July 1st, 2022, will increase again on July 1st, 2024, from $0.28 to $0.29. The fee is imposed on retail sales of tangible personal property delivered to Colorado customers by motor vehicle. It applies only if an item in the order is subject to tax.

Exemptions

If your small business had retail sales of $500,000 or less during the previous calendar year, you are eligible for an exemption from the Retail Delivery Fee on retail deliveries made during the following year.

For more information on updates to the RDF in Colorado or the new $0.50 RDF taking effect on July 1st in Minnesota, please get in touch with Thompson Tax today. We are your one-stop shop for all your sales and use tax needs and are always just a phone call away.

Sales tax audits are standard for businesses and can be a source of stress and anxiety for many business owners. However, with proper knowledge and preparation, you can confidently navigate a sales tax audit.

What to Expect During a Sales Tax Audit

A sales tax audit examines a company’s financial records to ensure it has properly collected, reported, and remitted sales tax to the appropriate tax authorities. Auditors typically review sales records, purchase invoices, exemption certificates, and other financial documents to verify the accuracy of the business’s sales tax filings.

Auditors may also interview key personnel to better understand the company’s sales tax processes and procedures. Additionally, auditors may perform on-site inspections of the company’s facilities to verify the accuracy of the reported sales and ensure compliance with sales tax laws and regulations.

How to Prepare for a Sales Tax Audit

Preparation is vital when it comes to a sales tax audit. Here are some tips to help you prepare for an upcoming audit.

1. Maintain Accurate Records

Keep detailed records of all sales and purchases, including invoices, receipts, and exemption certificates. Having organized and accurate records will make the audit process much smoother.

2. Review Your Sales Tax Processes

Review your sales tax processes and procedures to ensure compliance with all applicable sales tax laws and regulations. If you identify any areas of concern, address them before the audit.

3. Understand The Audit Process

Familiarize yourself with the audit process and know your rights and responsibilities as a taxpayer. Understand the scope of the audit and what documents and information the auditors will be reviewing.

4. Cooperate with The Auditors

Be cooperative and transparent during the audit process. Provide the auditors with the requested documents and information promptly and be prepared to answer any questions they may have.

5. Seek Professional Assistance

A sales and use tax professional can provide the support and guidance you need to navigate the audit process effectively.

Let Thompson Tax Help

While a sales tax audit can be daunting, being prepared and knowing what to expect can help alleviate some of the stress. Remember, preparation is vital. By maintaining accurate records, reviewing your sales tax processes, understanding the audit process, cooperating with the auditors, and seeking professional assistance, you can confidently navigate a sales tax audit.

Contact Thompson Tax today and let us guide you confidently through the audit process. We are your Trusted Tax Advisors.