Sales tax audit support
Why are you being audited?
Common audit triggers
- Inconsistent reporting or unusual patterns in tax returns
- High volume of exempt sales or resale certificates
- Significant changes in reported sales tax amounts
- Operating in high-risk audit industries
How auditors select companies
- Random selection through automated systems
- Industry-specific compliance initiatives
- Tips from competitors or customers
- Cross-referencing with other tax filings
Strategic audit preparation: Sales tax success toolkit
Nexus determination
Understanding where you have sales tax obligations is crucial for compliance.
• Economic nexus threshold monitoring
• Physical presence analysis
• Multisstate compliance strategies
Product taxability
Get clarity on how your products and services are taxed across different jurisdictions.
• Product classification guidance
• Exemption certificate management
• Special industry considerations
Did you know?
Trust The Sales Tax People
We understand the sales tax audit process thoroughly. Through our experience in handling hundreds of audits, we know how state auditors work. We’ve worked for companies with revenues of less than $1 million and companies with revenues over $100 billion. We’ve saved our clients over $61 million in audit assessments.
It should come as no surprise that state auditors aren’t looking for companies that are managing their taxes correctly. After all, audit penalties and assessments provide enormous revenue and help shore up budget deficits. One state alone might bring in tens of millions of dollars in audits annually.
You've Received a Sales Tax Audit Notice. Here's What to Do.
What a sales tax audit actually involves
When a state initiates a sales tax audit, they're reviewing whether your business collected, reported, and remitted the right amount of sales tax during a specific period, typically two to four years. The auditor will request documentation: sales records, exemption certificates, invoices, and sometimes shipping and inventory data depending on your business model.
Most audits start as desk reviews, where the state sends a document request and works through the information you provide. Larger audits, or those that uncover significant discrepancies, can escalate to field audits conducted on-site. The process can last anywhere from a few weeks to more than a year, depending on the state, the scope, and how quickly documentation is gathered and reviewed.
Why responding without expert help creates risk
Audit notices come with deadlines, and missing them has consequences. Filing for an extension without knowing the right procedure for that specific state can result in a waiver of your rights to protest findings. Providing documentation in the wrong format, or volunteering information beyond what was requested, can expand the scope of the audit.
States have experienced auditors who do this work every day. Responding without someone in your corner who knows how audits in that state typically unfold puts you at a disadvantage from the first exchange.
How The Sales Tax People help
When you work with The Sales Tax People on an audit, we step in and handle the state so you don't have to.
That starts with a thorough review of the notice itself: the scope, the audit period, which records have been requested, and the deadlines involved. We communicate directly with the state auditor on your behalf, organize and present your documentation in a way that supports your position, and represent your business through every phase of the process.
Where the auditor's assessment overstates your liability, we push back. That means identifying errors in how the state has applied your sales figures, flagging documentation that wasn't accounted for, and negotiating the final assessment where there's room to do so.
The goal isn't just to get through the audit. It's to reach the most accurate, defensible resolution possible.
Ready to talk through your notice?
Talk to a sales tax audit specialist — the first call is free.
You can also learn more about our Sales Tax Audit Defense service.
Audit knowledge center
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Frequently asked questions
We offer expedited support for time-sensitive matters, with most clients receiving initial guidance within 24 hours of contacting us.
We can help you become compliant through voluntary disclosure agreements (VDAs) and other remediation strategies to minimize penalties and interest.
No, we only assist with sales tax situations within the US and Canada.
