Should I hire an attorney to represent me for a sales tax audit?
Posted on Jan 31, 2012 with Comments 5
Jess asked:
Our company is being audited by the Texas State Comptroller’s office for a period of the past four years. I have been the one to calculate and pay the sales tax. About a year ago, we overpaid sales tax for about $32,000 taxable sales. After paying the tax, I was told that it was not a taxable job. Instead of asking for a refund (thought would send up red flags), we just took incremental deductions of taxable sales over the following 7 or 8 months. Apparently, that set up red flags. We also pay our vendors sales tax at the point of sale – not the mark-up amount to our customers so we pay less tax to the state.
Our company is being audited by the Texas State Comptroller’s office for a period of the past four years. I have been the one to calculate and pay the sales tax. About a year ago, we overpaid sales tax for about $32,000 taxable sales. After paying the tax, I was told that it was not a taxable job. Instead of asking for a refund (thought would send up red flags), we just took incremental deductions of taxable sales over the following 7 or 8 months. Apparently, that set up red flags. We also pay our vendors sales tax at the point of sale – not the mark-up amount to our customers so we pay less tax to the state.
I have nothing to hide and have paid sales tax accordingly but am still fearful of this audit.
TedEx – a CPA would be more helpful than a tax attorney? Please explain your answer.
Dorian Osterhouse
Filed Under: Law & Ethics
why don’t you first go to the audit or cooperate at your place of business and see how it goes. hire a lawyer if it doesn’t go well.
Will the company provide an attorney for you? Might want to consult with an attorney to be sure that you did this properly. If al lthe tax was in the same year, then it should be okay. However, if it was for 2 separate years, it was not done right and needed to file for refund for one year and pay for the 2nd year. May have a penalty now. Did the company tell you to do it that way or did you do it on your own? If on your own, I think you need to consult with an attorney.
By all means necessary you might want to consult a tax attorney immediately! It doesn’t matter if the state of Texas or the IRS audits you. You really shouldn’t go into a tax audit alone. The state has attorneys at their disposal. You should have one of your own going into that audit. Don’t go layman into their world. Get legal help at once if you think you are about to get audited.
A CPA would be more useful than an attorney.
The State Comptroller is a state agency. Get a lawyer; they might have a CPA on staff.