Sales Tax Audit Defense
Receiving a Texas Sales & Use Tax
Audit Notice
Audit Notice
When you receive a Texas Sales and Use Tax Audit notice the first question you probably ask yourself is “Why my company?”
There are multiple reasons why your company could have been selected to be audited:
- A large taxpayer in terms of sales tax reported
- Your company has been previously audited and the audit revealed a tax due of $25,000 or more
- Random selection by specific industry
- Information-sharing programs with other state agencies and state governments
- Analyses of tax return information
- Business publications, periodicals, and directories
- Leads submitted to the agency by the public
Examination of Taxpayer Records
When the auditor shows up for the entrance conference, they have already become familiar with your account by reviewing your reporting history and any prior audits that may have been conducted.
By law, the auditor may examine your books and records to determine the accuracy of the tax that was reported and paid. Taxpayers must keep all records for a minimum of four years. Some records that may be requested are:
- Purchase and sales invoices
- Resale and exemption certificates
- General Ledgers
- Charts of accounts and financial statements
- Bank statements
- Federal income tax information
- Documentation supporting overpaid tax and supporting credits taken on returns
While the auditor is examining your records they will let you know of the work being conducted and will provide schedules that will identify any overpaid and/or underpaid tax. The taxpayer can now dispute any proposed adjustments and refunds should be issued if any are found. The taxpayer can also request a reconciliation conference or independent audit review to discuss any disagreements. It is important to note that the information on who is being audited is public information and therefore you may be solicited by consultants and attorneys regarding this information. For more information regarding the audit process click here.
How We Can Help You
While professional representation is not required we highly recommend it. Hiring us will let you focus on running your day-to-day business without having to worry about dealing with the auditor. You will have representation from the onset of the audit questionnaire through the hearing process.
- Perform tax research: We will review your records and provide an evaluation of your potential sales and use tax exposure
- Act as a buffer and handle communications with the Texas State Comptroller so you can focus on your day to day business activities
- Analyze and prepare business records. We will screen request that are made by the auditor to make sure they are appropriate record request.
- Correct the auditor in any inaccurate assessments.
- We make sure that any field audit test and sampling methods done on your business are correct.
- Protest results with the auditor
- Negotiate settlement options
- Represent you in an administrative hearing
Why Hire Us?
We are the only Texas family firm of all former Texas Comptroller Tax Auditors. When you hire us, you will receive 3 highly skilled tax consultants with a combined 75+ years of experience in Texas State Tax. Many companies choose to let their CPA’s handle the audit and while CPAs are knowledgeable in Federal Tax, we only focus on Texas State Tax which can often times be confusing. Our premier taxpayer representation services have resulted in millions of dollars reduced from audit assessments. In most cases, we overturn 100% of the tax adjustment to a No Tax Due or even a Tax Refund. Our company strives to make sure your audit results are under that $10,000 threshold so you don’t get audited again.
Confidentiality and Security: We are the only Texas Tax Consulting Group that is comprised of former Texas Comptroller Auditors that do not subcontract services. We have been extensively trained by the State Government to secure all taxpayer records and information. There are companies with claims of 300 years of combined experience, but they are hiring freelance auditors that have left the state with a few years of experience or on not-so-good terms. We at TTCG take safeguarding all documents provided by taxpayers seriously. If you hire a tax consultant, make sure to add in the contract that they will NOT subcontract your audit out.
