Even in the best economic times, businesses must be vigilant against unnecessary costs and risks. But not just businesses need to be vigilant—states and other tax authorities are feeling the same economic pinch, and are ready to seek out non-compliers with tax reporting. Get tips on how to survive sales and use tax audits, starting with understanding your exposure to audits and how to avoid them right from the start.
who makes federal laws
and determine those taxpayers who are at potential risk for underreporting and/or underpaying sales, use, corporate, and/or withholding taxes.”2 If you know what they are looking for, you can take steps to avoid being audited. But just what are the triggers? According to current and former auditors, here are the top ten issues that, when uncovered, will prompt an audit: Nexus but no registration. Nexus is a confluence of factors that make a business liable for sales and use tax payment and reporting.