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SMART TAX USA - Audit Defense

As state and local business taxes rise to offset the increased cost of providing government services to increasing populations, states and local jurisdictions are increasing their efforts to collect business taxes. A state tax agency may audit a company’s records at any time to verify claims made on tax returns or to investigate whether all required taxes have been paid. The best time to implement an audit defense policy is before an audit occurs instead of after a notice of audit has been received because adequate advance planning can avoid costly errors.

In addition to reviewing all federal, state and local tax documents, an auditor may examine general ledger books, a general journal, a purchase journal, a cash disbursement journal, sales invoices, canceled checks and deposit slips, cash receipts, charts of accounts, bank statements, purchases of fixed assets and depreciation schedules, expenses, the minutes of corporate meetings and board of directors meetings. An auditor’s job is to check for compliance with all applicable regulations and to find any information that indicates required taxes were not paid. When Smart Tax USA conducts an audit defense, our goal is to examine all invoices that include paid taxes and find ways to offset the tax liabilities.

Concurrent with the economic growth of the Internet, an increased number of companies are expanding their business into interstate commerce so the need for multi-state tax knowledge is increasing. Most corporations maintain their accounting records in some type of computer format. Providing accounting records to an auditor in a well known computer format reduces the risk of random sampling by the auditor, saves valuable employee time or consulting time during an audit and increases the accuracy of the audit. Smart Tax USA has been especially successful at converting significant tax deficits into refunds during state tax audits of large manufacturing companies.

Another strategy in audit defense is known as a reverse sales and use tax audit. This is the opposite of a sales and use tax audit in which an auditor reviews a company’s business to determine if sales taxes and/or use taxes were correctly collected and paid. In a reverse sales and use tax audit, an independent tax expert identifies where overpayment of taxes has occurred and finds ways to recover the overpayments. Because each state has different regulations and requirements, it is necessary to know each state’s procedures for recovering tax overpayments as well as each state’s statute of limitations for filing tax refund claims. Some states require refunds to be made by the suppliers who received the tax overpayments but many states allow companies to request refunds directly from tax agencies.

• State Tax Audit Defense
• State Manufacturing Exemptions
• Reverse Audits

CONTACT US:

Please fill out the simple form below, and we will contact you to see how we can help with your situation

SMART TAX USA, T 214-500-7056 , FAX 866-539-7906

More than 5,000 U.S. jurisdictions have changed their sales and use tax legislation in the last decade. SMART TAX USA determines how these law changes provide additional exemptions, credits and tax incentives for your company.

State Courts are constantly interpreting sales tax laws and regulations. SMART TAX USA deciphers these complex laws and regulations to maximize cost saving benefits.

In today’s economy many states are adding additional tax exemptions, credits and tax incentives to create job growth within the manufacturing and industrial spectrum. SMART TAX USA specialized, comprehensive analysis can determine how these new exemptions directly affect your business and could result in a reduction of current and future tax liabilities providing significant tax savings for your business!

Profit Recovery with Reverse Audits - Refunds Now - Future Savings. 90% of our audits result in an instant refund and most importantly, significant future savings

Call 214-500-7056 To Get Started

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