It’s safe to say that most executives and business leaders understand that businesses get audited for sales and use tax, but only a small percentage are aware of the material impact to their company should a state auditor come knocking on their door.
Unless you’ve been audited in the past, you might not know why certain businesses are targeted, what the most common types of errors auditors look for, and most importantly, how much it will cost the business should the audit outcome not weigh in your favor.
The type of business you’re in could be all it takes to trigger a sales tax audit. It’s true.
Certain industries attract state auditors’ attention more than others – simply because sales and use tax is especially difficult for these businesses to manage and the high risk of errors is low hanging fruit.
Sales Tax Audits Uncovered, a new report by Avalara and Peisner and Johnson, looks at real data from state audits to uncover:
- Why certain industries get audited for sales and use tax more than others
- What makes these companies more vulnerable to sales tax errors and audits?
- How just doing a few things differently can improve tax compliance and reduce risk