What will trigger your next tax audit?

Posted by B/P News & Notes on January 11, 2018 at 9:51 AM

What will trigger your next tax audit

Did you know that wholesalers and distributors are in the top five most-audited industries?
State and local sales and use tax regulations can be complicated, and the rules are constantly shifting. Historically, this unintuitive taxability has caused certain industries to struggle with compliance and, hence, to fall into the sites of government auditors far more frequently than others. In the free whitepaper published by Peisner Johnson & Company together with Avalara, you’ll learn which industries are most as risk and where the majority of errors stem from.

As a distributor or retailer, are you familiar with the tax requirements in all states that you do business in?
Product taxability rules vary broadly across states. As businesses grow and their transactions begin to cross state lines, the impacts of nexus become increasingly likely. If a business doesn’t understand or ignores the fast-changing laws pertaining to nexus, it may be putting a target on itself for a tax audit. When you download the whitepaper, you’ll learn some of the activities that can trigger nexus and how organizations using tax automation might have an advantage over those trying to figure out and comply manually with all of those interstate tax requirements.

Research cited in the report shows that a typical audit can cost a business in excess of $114K.
The penalties are just one part of that figure. Perhaps more costly, though indirect, is the disruption that a sales and use tax audit can have to a business's productivity; especially given that they typically last 30-45 days. The downloadable whitepaper notes the states that are auditing most aggressively and some of the measures they are taking. It offers general suggestions for reducing the risk of being audited as well as surviving one if it happens.

Ace your next tax audit.

what will trigger your next tax audit

 

Download our free whitepaper to learn how wholesalers, distributors, and other industry participants can reduce audit risk, and how tax automation can play a part.

Topics: Taxes

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