Multistate Guide to Sales and Use Tax Audits provides state-specific material for preparing for and handling an audit in all states that impose sales and use taxes. Readers will gain an increased understanding of why their businesses or clients were selected for audit, how their audits will proceed, what the audit staff will be looking for, and how assessments are developed.

Instead of enacting tax increases, taxing agencies are quietly encouraged to mine every possible dollar from the existing tax structures. As a result, a sales and use tax audit notice generally may be regarded as the first step in a state civil action intended to extract additional funds from a specific taxpayer. Since this may often result in unfavorable consequences for the taxpayer, Multistate Guide to Sales and Use Tax Audits is intended to improve the taxpayer's chances of prevailing in what is often a losing battle. It aims to assist taxpayers in proactively avoiding paying more than their legal share of taxes.

This guide comes with a bonus back-of-the-book CD-ROM, containing approximately 200 state and local exemption certificates.

Benefits and Features

Highlights Of The 2008 Edition Include :

• A discussion of the rigid mechanical sampling program employed by Texas in its sales and use tax audits (see Chapter 6);
• A new section has been added to Chapter 6 discussing the negligence penalties auditors frequently apply to assessments based on indirect audit methods and the increasing number of punitive steps many states are taking against taxpayers whose records
• A revised Application for Multistate Voluntary Disclosure, Multistate Tax Commission, National Nexus Program and a revised Streamlined Sales Tax Agreement, Exemption Certificate and Instructions (see Chapter 2);
• A revised Multistate Exemption Certificate and a revised discussion of Maine exemption certificates; in addition there is a discussion of the different, if not particularly clear, standard for the burden of proof borne by a cash business established
• A discussion of the policy espoused by the Wisconsin Department of Revenue on the compromise of sales and use taxes, penalties and interest (see Chapter 10);
• All State specific exhibits and taxpayers bills of RIGHTS have been updated as necessary.

Bonus!

CCH's Top Multistate Tax Issues for 2008 Course is included with this purchase. A helpful resource that provides explanations of significant laws, this CPE course covers all the regulations, decisions and issues that affect multistate tax practitioners. Readers get the guidance, insights and analysis on important provisions and their impact on multistate tax compliance and tax planning.

Topics and Contents

Overview of the Audit Process

The Sales Tax

Nontaxable Sales

The Use Tax

The Sales and Use Tax Audit--Initial Steps

Field Examinations

Overpayments and Refunds

Protecting the Taxpayer

The Post-Audit Administrative Protest Process

Mediation and Settlement Offers

Judicial Remedies