The One Document You MUST NOT 
Give to the Sales Tax Auditor
WHAT NOT TO GIVE ► Detail Backup to the Depreciation Schedule
WHY NOT ► Don’t give them unnecessary documents such as the backup to the depreciation schedule. The reason for this is that schedule usually has rounded and combined figures. The auditor doesn’t need this document because they have the source documents that feed this schedule. If they get this schedule and start assessing the amounts there, it can be very difficult to get them removed later. 
WHAT ELSE ► It is important to remember that there are other pieces of information that an auditor should not have (for example personal information about customers or proprietary information about the company). Similarly, an auditor rarely needs an entire contract; they typically only need a limited portion of the contract and as such should only be provided what they need.
DON’T MAKE THIS SAME MISTAKE ► We had a client that had acquired a hospital several years prior to the audit. Accounts payable records had to be requested and shipped in so they weren’t immediately available. But the auditor had asked for and been given the depreciation schedule with some backup detail with lump-sum amounts and summary information. The auditor simply scheduled all the items on the depreciation schedule (except for the real property amounts) and then left it to the client to prove that tax had been paid. Then we were called in. Unfortunately it was too late to avoid this huge fiasco and we ended up working on it for two more years trying to prove that the amounts assessed for these records was included in the accounts payable records. There’s no doubt that several hundred thousands of dollars in taxes was overpaid in that audit. Not to mention the amounts spent on professional fees to fight it.
WHAT CAN YOU GIVE ► Auditors usually request more information than they really need. Here’s a list of what you can share with the auditor:
  •  Federal and state income tax returns
  •  Sales and use tax returns 
  •  Worksheets used to prepare returns (be careful about the depreciation schedule) 
  •  Reconciliation schedules 
  •  Exemption certificates, product descriptions, contracts and other information supporting an exemption
  •  Source documentation such as invoices, register tapes, contracts and other records
What Should You Give to the Auditor
Instead of the Depreciation Schedule Detail?
That’s a good question and we have the answer to that and more in our
FREE Guide to Managing Your Sales Tax Audit, available BELOW.

FREE Guide
"How to Manage Your Sales Tax Audit"

How to Avoid a Devastating Sales Tax Audit

When it comes to the odds of being audited for sales tax, it’s not if, it’s when. So it’s best to be prepared for the experience. The main goal is to keep the assessment to a minimum without wasting [too much] of your time.
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This Special Report is meant to assist you in handling the audit yourself and in keeping the assessment to a minimum. By experience in handling many many sales tax audits over the years for many clients, we understand the audit process and we know how state auditors work.

We’ve worked with million dollar companies to a hundred billion dollar companies and have saved our clients over $61 Million in audit assessments. 

This book will give you the inside information you need to get those same benefits.
Here's a Preview of What 
You'll Learn in This Guide
  •  What to do when you receive an audit notification letter
  •  How to handle the critical first meeting with the auditor
  •  How to delay the beginning of the audit without getting on the auditor's bad side
  •  Why a designated Audit Coordinator is such a good idea
  •  What official authority does an auditor have to audit your business? What are the limits?
  •  How long should we expect this audit to take? Why so long for some audits?
  •  Why should we do a self-audit before the audit begins?
  •  What if we are currently registered and filing in the state seeking to audit us? Are there any special considerations in this case? 
  • What to do about resale certificates before the audit even begins
  •  Where the sales tax auditors always find the easiest and lowest hanging fruit
  •  Why you should be very careful before you agree to a waiver of the statute of limitations
  •  How undetected Nexus can destroy a business
  •  What will records should you allow the auditor to see? Is there anything in particular that you should NOT give to the auditor?
  •  What are the 4 most important areas to review in a self-audit?
  •  Should we do a refund/tax credit review before an audit, and if so, how do we go about it? 
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