Are You Prepared, for a Sales Tax Audit?

April 23, 2019 by OSYB Staff

Perhaps the business is new or it’s been around since the dawn of time, whatever your business longevity, the chances that the Department of Revenue (DOR) will come knocking on your door is a probable reality. When that happens, how ready are you to share your documentation? Intuit QuickBooks shares tips to help you stay on top of meeting auditors. Here are some of the ten tips that they shared:

• Be very clear about the state taxability rules on what you are selling at all given times and under different circumstances.
• Implement an exemption certificate process that includes ensuring that the certificate is filled out appropriately and is up-to-date, meets state requirements and that certificates are stored in an accessible space.
• If you have a Marketplace Facilitator, make sure you thoroughly comprehend your agreements and that you are able to ensure that the collection, reporting and payments on your sales via the facilitator meet all requirements and meet any new tax changes.
• Make sure that the DOR always has the most current business name, address, phone and email. For extra protection, even if online DOR notices are authorized, also request for hard copies by postal mail. Once a notice has been received, respond promptly and before the date required.
• Gather all required documents much prior to the audit date and take this opportunity to review documentation and audit it for business purposes.

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For more information during and after the audit: Ten tips for a successful sales tax audit

Image Credit: Deposit Photos