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• Random selection by the State

• Discrepancies on tax return or tax filing

• Late payments

• Prior audit issues

• Large refund or exemption claims

• Tax issues unveiled through vendor/customer audit

There is a 4-year statute for sales tax audits in Texas

• Bank statements

• Sales & Federal tax returns

• General ledgers

• Sales & Purchase invoices

• Exemption & Resale certificates

• Any business-related accounting records within the audit period

• Incomplete or missing records

• Missing certificates

• Charging the incorrect local tax

• Misinterpretation by the State auditor

Determining Factors:

• Quality of records

• Issues unveiled by auditor

• Auditor's workload

• Size of business

(Highly recommended if unfamiliar with Texas tax laws or audit process) A sales tax

consultant can:

• Represent your business throughout the entire audit process

• Help organize records before provided to the auditor

• Assure incorrect tax liabilities are not assessed

• Recover credits and overpayments

• Help negotiate settlement/payment plan terms

• Provide post-audit consulting to fix errors

• You can request an Independent Audit Review

• Most taxpayers can file for a redetermination hearing within 60 days of their

notice of audit results

• Jeopardy determinations must be filed within 20 days

• Additional records or supporting documentation can be provided

• Negotiation with State for settlement/payment plan

• Construction

• Oil & Gas

• Retail stores

• Manufacturing

• Restaurants

• IT

• Professional services

• File your returns correctly and on time

• Keep detailed and organized records for the previous 4 years

• Constantly review the sales tax laws for your industry as things can change

• Performing regular internal audits to assure compliance