- Sales tax audits can occur unexpectedly, with warning signs often overlooked.
- The guide identifies 13 red flags that may trigger audits.
- Filing inconsistencies such as late or error-filled returns can lead to audits.
- Mismatched sales data between returns and marketplace reports is a red flag.
- Rapid or unexpected nexus expansion without registration is non-compliance.
- Missing or invalid resale or exemption certificates can result in tax liability.
- Unusual deductions or exemptions claimed above industry averages invite scrutiny.
- Proper documentation and timely registration can prevent audits and penalties.
Source: trykintsugi.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.
