You know how stressful it can feel if you’ve received a formal letter with the news of an upcoming audit. So let’s talk about the next steps.
What is an audit?
An auditor goes into an audit with two things in mind.
They want to determine if your business has collected and remitted the proper sales tax amounts from your customers.
They want to verify that you’ve paid or self-assessed the correct amount of sales and use tax on the purchases you’ve made during the set audit period. (The set look-back period is typically 3-4 years, but the statute of limitations varies.) The purchases will include both operating expenses and fixed assets.
If you find yourself under audit now is a great time to get on a What's Next Call!: https://peisnerjohnson.com/whats-next/