With frequent changes to tax laws, the increasing ease of multi-state commerce and the growth of online business, it’s easy for business clients to find themselves on the wrong side of fiscal regulations.
If you have a client facing a sales tax audit, you can take several steps to make the process more favorable, less costly and more painless. From the initial Request for Information and back and forth on audit schedules, to the assessment and potential appeal, you should expect to focus on you client’s audit for one to six months.
Here’s how to navigate your client’s impending sales tax audit like an industry pro.
7 Audit Components to Negotiate
There are a few areas to get more favorable conditions. Here are seven elements that can make an audit a more manageable process than you can negotiate with an auditor:
1. Timeline. Depending on the documents requested, the known fiscal issues of your client or your availability to work full time on the audit, negotiate a reasonable timeline to respond to the auditor’s information document request (IDR). Make sure the agreement between you and the auditor is in writing to avoid miscommunication later on.