If you've been notified by your state that your business or company is the lucky winner of a sales tax audit, don't press the panic button just yet. You can stay on top of the situation by taking control, and by hiring a professional California tax preparation and audit accountant team who can help you to be well prepared for the big day. An experienced tax professional can help you gather the needed records for the audit and will also know what the IRS is likely to be looking for in that situation. By being cooperative and proactive, and by having a financial professional at your side, you can ensure the best possible outcome for your sales tax audit. You may also learn something about money management in the process and can learn how to prevent future audits as well.
Common Sales Tax Audit Issues
The taxation rules and regulations that govern various industries and businesses can become very complex, and they do vary somewhat by industry. However, tax auditors are often looking for similar things when they do an audit on a business. Some of these things include invoices that are not clear or that do not show sales transactions thoroughly enough, tax charges being omitted on shipping, improper taxation of bundled transactions, or intercompany transactions that were not properly taxed. Since tax laws are often dynamic and continuously changing, it's not that hard for a business owner or manager to make a few honest mistakes, and that's why having the help of a professional sales tax preparation accountant can clear up any confusion or discrepancies at or even before an audit.
Preparing for a Sales Tax Audit
In preparing for a sales tax audit, the first step is to understand exactly what the auditor is asking for in that case. You can save time and energy by only addressing the questions that were actually asked, instead of giving the auditor an account of all your transactions for the entire year. A sales tax preparation professional can go over the audit request with you and help you find the pertinent records and information that are needed to satisfy the auditor. It is better to stick to the topic of the audit itself rather than to give out extra information that was not requested, as this may simply raise more questions and make the audit more complicated than it needs to be. Hiring a sales tax preparation and audit specialist can help you tailor your response to the audit so that it addresses the specific issues at hand.
Call to Schedule a Free Consultation with a Sales Tax Preparation and Audit Accounting Professional in California Today
If your company is facing a sales tax audit or needs help with tax preparation, call to schedule a free consultation with a sales tax preparation and audit accounting professional in California today. The tax and audit experts at Daleyn Accountancy will help you understand your audit letter and prepare you for the audit. We'll help you get through it quickly and efficiently. We serve those in Encino, Los Angeles, Thousand Oaks, Camarillo, Agoura Hills, Woodland Hills, Calabasas and surrounding communities. Don't let a sales tax audit scare you. Give us a call at 818-696-0866 and let us guide you through the sales tax audit process with composure and grace.