Sales tax audit can be done on any business by a taxation body or agency as long as they collect sales taxes. This is necessary to determine if they have been submitting their taxes correctly. An examination of the accounting done by the business can determine whether or not their taxes have been paid. Audits can be done on companies that are not suspected of cheating on their taxes and of those that are but do not reflect sales. If an auditor appears at your business you are required to surrender all accounts to the auditor.
All governments must rely on taxes in order to carry out their core duties of national progression. In the United States, taxation is done at the state level. The rates of sales tax and the rules and regulations governing its collection are different in different states. A sales tax auditis the only way that the state can know if all the rules and regulations are being followed and if all the sales taxes have been remitted at the correct rate.
Every state varies on the types of tax records that a business should keep for a sales tax audit. The taxation body will choose a list of businesses that are going to be audited, these contacts will be contacted and advised that their accounts need to be in order by a given date.
A sales tax audit will require critical examination of your accounting records. The business is normally supposed to file the tax record with the state and disclose how many taxable sales were made and what was the total amount collected as taxes. This is the amount that you are supposed to remit as sales tax. Tax consultants can help you in the preparation of these records.
Crooked companies will claim exemptions even when taxable sales are made, this will result in a tax audit. An auditor will go through the filed tax record and determine if this is a true reflection of the sales tax liability of your business.
The results of the Sales tax audit can have several outcomes. It can reveal that you have been paying your sales tax accurately and therefore clear the name of your business. The audit may also determine that you have not remitted all the sales tax and in this case a penalty is levied against your business. The audit may also reveal that you have overpaid your taxes possibly by paying sales tax on goods and services that should have been exempted. In this case you can file for a refund from the taxation body.
All governments must rely on taxes in order to carry out their core duties of national progression. In the United States, taxation is done at the state level. The rates of sales tax and the rules and regulations governing its collection are different in different states. A sales tax auditis the only way that the state can know if all the rules and regulations are being followed and if all the sales taxes have been remitted at the correct rate.
Every state varies on the types of tax records that a business should keep for a sales tax audit. The taxation body will choose a list of businesses that are going to be audited, these contacts will be contacted and advised that their accounts need to be in order by a given date.
A sales tax audit will require critical examination of your accounting records. The business is normally supposed to file the tax record with the state and disclose how many taxable sales were made and what was the total amount collected as taxes. This is the amount that you are supposed to remit as sales tax. Tax consultants can help you in the preparation of these records.
Crooked companies will claim exemptions even when taxable sales are made, this will result in a tax audit. An auditor will go through the filed tax record and determine if this is a true reflection of the sales tax liability of your business.
The results of the Sales tax audit can have several outcomes. It can reveal that you have been paying your sales tax accurately and therefore clear the name of your business. The audit may also determine that you have not remitted all the sales tax and in this case a penalty is levied against your business. The audit may also reveal that you have overpaid your taxes possibly by paying sales tax on goods and services that should have been exempted. In this case you can file for a refund from the taxation body.