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Audit Representation
If you have been notified by the State for a Sales and Use Tax audit or are in process of one, we can represent you in your audit to the State. Our experience, knowledge and familiarity with the state audit procedures will help you minimize your audit assessment. Also keep in mind that if you end up with an audit deficiency once, the probability is extremely high that the State would audit the business again within 4 years. Therefore it is important to get it right the first time. In our Audit Review and Representation assignments we plan the audit strategy, identify weak areas and estimate your exposure by conducting an internal audit or a Pre–Audit Compliance Review, including analyzing sampling and estimating methods, test periods, taxability issues etc.
A compliance review reveals whether you have properly reported tax. Any tax assessed as a result of an audit will result in levy of penalty and interest. Regular penalty will be added at 10% while additional or fraud penalty is 50% of the tax assessed if you under reported tax by 25%. Avoiding penalties and interest can result in substantial savings to your company. However, appropriate procedures have to be employed to ensure that the assessments are kept as low as possible. Also the audit progress is constantly monitored and you will be kept updated without having to interact directly with the auditor. We are confident that our involvement will help you reduce business interruption and ensure the most favorable results possible.
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