Sales Tax Audits: A Comprehensive Guide

• 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

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