Audit Defense - General
The term “Audit” refers to a process where the State reviews your payment history looking for areas of underpayment that they hope leads to a significant liability. This involves a State Auditor identifying a sample they claim to be representative of your overall purchases, looking for taxes unpaid or underpaid, and an extrapolation of this sample multiplied to equal the statutory period of three or four years.
Some states are now requiring companies to perform self-audits, meaning requesting they review their own files and identify purchases made where no sales or use tax was paid.
From the initial notice through the sampling process, taxability determination, and extrapolation there are a multitude of opportunities for a company to incur unfair or inaccurate liabilities. Having an expert handle this process is vital to the outcome resulting minimal liabilities, if any at all.
SALT Solutions specializes in working with State Auditors to not only limit liability, but often identify refund opportunities through this process. Without expert representation and Audit Defense services, your organization could incur damaging liability, penalties, and interest.
We have been successful at saving our clients significant tax dollars through the audit process. We have followed behind other large firms who had the opportunity to reduce audit liabilities first, yet we still found six and seven figure savings after they had concluded their review.
If your organization has been selected for an audit, engage SALT Solutions as soon as possible.