Last Updated: December 19, 2023Categories:

Before Sales Tax Specialists, Inc. Got Involved

This client came to us after receiving the preliminary audit working papers. They had been told that they owed sales tax on approximately $450,000 in additional taxable sales based on the auditor’s use of a markup analysis in their audit. The client had impeccable records including all supporting documentation for all purchases and all sales. Nonetheless, the auditor proceeded to use routine “industry standard” estimates that were not at all reflective of the actual operations of the client and proceeded to establish the additional taxable sales of approximately $450,000.

After Sales Tax Specialists, Inc. Got  Involved

We very quickly identified the erroneous areas and components of the audit creating the fictitious level of additional taxable sales. We were able to work closely with the client in organizing detailed and summary reports from their records that provided the audit supervisors the information they needed to correctly establish that estimates used by the auditor were incorrect and there were no additional taxable sales in this audit.

By focusing on the key estimates providing the auditor with incorrect results, we saved our client almost $53,000 in tax, interest, and penalty.

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