- Sales tax audits are increasingly common, with many businesses being audited by both their home state and other states, especially Alabama, California, and Texas.
- Many finance executives lack confidence in their audit preparedness, and one audit can trigger additional audits in other states if non-compliance is found.
- Common audit triggers include not charging tax on taxable products, missing permits, incorrect tax calculations, and missing resale certificates.
- Sales tax exemptions require valid exemption certificates, which must be reviewed and collected promptly to avoid auditors assuming transactions are taxable.
- To protect your business, collect and review exemption certificates early and allow customers to submit them in various formats.
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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