- NY Credits : 2.0
- TX Credits : 2.0
Sales and Use Tax - Conducting the Sales and Use Tax Audit
The primary objective of a sales and use tax audit is to determine, with the least possible expenditure of time, whether the business selected for audit has paid the correct measure of tax. This interactive self-study course addresses how a taxpayer would prepare for the audit by educating the taxpayer on how the audit is selected, how the state notifies the taxpayer of the audit and explains the period of time the sales tax audit will cover. Next, the course walks the taxpayer through the initial audit conference and the audit plan that the state will employ. In addition, the course explains the sales tax audit tests and procedures utilized by the state sales tax auditors. Finally, the audit closing conference that the state will hold with the taxpayer and how the taxpayer protests tax assessments by the state is discussed. This basic level course is most beneficial to professionals new to sales and use tax audits but may also benefit an experienced professional with limited exposure to this topic.
Upon successful completion of this course, the user should be able to:
determine the financial records the state and local sales tax auditors request to conduct the sales and use tax audit and the responsibilities of the business to provide records, space, and contact personnel for the auditor;
identify how to prepare for the initial audit conference and understand the types of information that will be requested, as well as, the audit sample methodologies and sample agreements the auditor may use during or as a result of the information obtained at the initial audit conference;
recognize audit procedures and testing performed by sales tax auditors; and
recognize what the audit workpapers should include, the purpose and goals of an audit exit conference, and the remedies available when a taxpayer does not agree with the auditor's findings.