- Sales tax audits can be overwhelming for businesses, but with the right knowledge and preparation, they can be survived.
- These audits are conducted by state or local tax authorities to verify the accuracy of sales and use tax collection and remittance.
- Auditors review transaction records, invoices, and tax filings to identify discrepancies or underreporting.
- The goal is to ensure businesses correctly calculate the sales tax owed and to educate them on proper tax reporting and payment practices.
- Audits can be triggered by various factors, and the process can involve a comprehensive review of electronic and paper records, interviews with business personnel, and on-site visits.
Source Taxually
