- The Texas Comptroller of Public Accounts has updated its guidelines on how to contest disagreed audits, examinations, and refund denials for sales and use tax
- The revised publication helps Texas taxpayers understand their rights and the procedures to follow when they disagree with audit findings or tax assessmentsKey Elements of the Revised Publication1. Pre-Audit or Pre-Examination Disagreements
- Taxpayers can have a Reconciliation Conference, an informal meeting to resolve issues before a formal audit
- Taxpayers can request Taxability Guidance to clarify the taxability of transactions and avoid future disagreements
- An Independent Audit Review Conference allows for a second opinion on taxpayer records by an experienced tax examiner2. After Receiving Audit or Examination Results
- Taxpayers can request a conference to discuss audit findings and present additional evidence or clarifications
- If unresolved, taxpayers can submit a Statement of Grounds for Administrative Hearing Requests to contest the audit results formally
- Taxpayers may opt to bypass the formal hearing process through a Notice of Intent if they believe a resolution can be reached through direct negotiation3. Penalties, Interest, and Waivers
- Additional taxes owed from audits may incur penalties and interest, with details on assessment and calculation provided in the publication
- Taxpayers eligible for refunds may receive credit interest compensating for the time between overpayment and refund
- Penalty waivers are available under specific conditions, which taxpayers can request if they meet the criteria
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
