You may be wondering when you should hire a sales tax lawyer. Well, having an attorney is a smart move no matter what type of business you have. If you are having a sales tax audit, here are a few things to keep in mind. Preparation is key, and hiring a skilled attorney is imperative to avoid a costly mistake. If you are not sure what to do when the sales tax auditor arrives, read on.
Having a sales tax lawyer
The New York Sales Tax Department can be very aggressive in pursuing businesses for failing to pay the required amount of sales tax. Failure to file a sales tax return can result in monetary and criminal liability. In addition, failure to pay can even constitute theft. Having a sales tax attorney on your side can protect your rights and ensure that your company follows all applicable laws. Here are some benefits of hiring a sales tax lawyer in New York:
A good lawyer understands the importance of accurate recordkeeping. If the DRS has not gathered enough information, the auditor could develop incorrect assumptions. Having adequate records is the key to avoiding penalties and high assessments. In addition to this, a skilled attorney can help prepare your company for an audit by preparing and submitting the proper documentation to avoid errors. If you’re facing a sales tax audit, the attorney will be able to defend you, ensuring that the process goes as smoothly as possible.
Getting a sales tax audit
If you are facing a sales tax audit, you may be wondering whether you need a lawyer. A sales tax audit is a costly and disruptive process. A tax auditor will want to see records and documents that demonstrate you remitted the correct amount of tax. To prove this, you need to keep adequate records. If you do not keep records, you will have to explain the situation to the auditor, who will use the records to determine your liability. If you do not keep your records properly, you can have your sales tax audit stopped if you hire a sales tax attorney.
After a sales tax audit, you will be notified of the results. The auditor will hold an exit conference to explain the findings and make any necessary corrections. You can send a representative to this conference, but the BOE prefers that you attend the conference. At the exit conference, you will have the chance to review the findings and ask questions. The auditor may apply a 10% finality penalty, which is equivalent to ten percent of any unpaid fees. The auditor can also take action against you through bank account levies and property liens. If the audit finds that your business has underpaid the tax, you can appeal the results.
Preparing for a sales tax audit
A sales tax audit can be a scary experience for a business owner. While it may seem like a simple task, handling an audit yourself can end up damaging your chances. By not getting the right help, you could reveal information that you shouldn’t. Here are some tips to help you prepare for a sales tax audit. Before your audit, be sure to keep the following documents close by:
– Completed exemption certificates for exempt sales. Make sure you keep copies of all of your exemption certificates and store them appropriately. If your buyers send you a sales tax certificate that is incorrect, contact the buyer immediately. Otherwise, you could find yourself stuck paying uncollected tax, penalties, and interest. If your buyer uses a marketplace, be sure to check the agreement you signed with the Marketplace Facilitator to make sure you’re reporting accurately.
Dealing with a sales tax audit
Regardless of how complicated or straightforward your company’s sales tax audit may be, it is important to seek legal advice from a sales taxes attorney as soon as possible. The statute of limitations for sales tax audits varies by state. While most states allow for up to three years of sales tax audits, you may need more time. In addition, the statute of limitations may be extended if the amount you’re being audited is more than 25% off of the correct amount.
The purpose of a sales tax audit is to verify that you have properly reported your taxes and fees. If there are mistakes in your reporting, the auditor may refer your case to the Franchise Tax Board or the Internal Revenue Service’s Criminal Investigations Division. However, if the audit is not a result of fraud, it may be due to an oversight in your bookkeeping process. Regardless, if you have a sales tax audit attorney by your side, you can expect a successful outcome.
Getting a sales tax lawyer in New York
If you have been assessed with a sales tax debt, you need to hire a sales tax attorney in New York to protect your business’s best interests. The NYS Tax Department has a wide net when it comes to assessing sales tax liabilities, and sometimes those assessments have little or no basis in actual business operations. Getting a sales tax attorney in New York can help you fight back and reduce the stress and financial consequences of the audit.
A sales tax attorney in New York will be able to help you defend against a responsible person assessment. These attorneys are knowledgeable in the nuances of sales tax laws and the different defenses you can use to defend yourself. If you are facing a sales tax audit, you can contact a sales tax attorney in New York who can explain the requirements and process for you. They will also help you defend yourself from the sales tax department’s aggressive tactics.
