Overview
States are becoming more aggressive as falling tax revenues constrain expenditures and force budget cuts. Business structures, products and services are increasingly complex with outcomes that don’t always fit neatly into vaguely worded and outdated statutes. Heightened audit activity, the states’ shifting tax policies and a new wave of proposed sales tax legislation all serve to highlight the importance of staying current on tax law while minding your business operations. Failing to do so may lead to unexpected sales tax assessments upon audit.
Benefits of participating in this OnDemand Webinar include developing an understanding of what you can do now to minimize future audit liabilities. A significant portion of our discussion will focus on those issues taxpayers find most troublesome during audits from audit sampling and projection methodologies to transactions most often giving rise to liabilities. We will also review some of the basic procedural issues concerning audits as well as current trends in state sales tax policy and legislation. You will be able to develop a sales tax awareness and sales tax strategies that could produce a significant return on investment.
Authors
Edward H. Ben, CPA, SC&H Group
Mike Ginski, CPA, SC&H Group
Christopher Tracy, CPA, SC&H Group
Self Study Credit - OnDemand Webinar
| CLE | 1.5 | AZ, CA, HI, IL, MT, NC, PA, UT, VA, VT, WI | |
| CLE | 1.7 | MS, TN | |
| CLE | 1.75 | WA | |
| CLE | 1.8 | MO, NJ, WV | |
| CLE | 2 | CO | |
Self Study Credit - CD & Reference Manual
| CLE | 1.5 | AZ, CA, GA, HI, ME, MT, NV, UT, VT, WA | |
| CLE | 1.8 | MO, WV | |
| CLE | 2 | CO | |
Self Study Credit - Podcast
| CLE | 1.5 | CA, ME, MT, NV | |
| CLE | 1.8 | MO, WV | |
Agenda
Sales Tax Audits in Today's Economy
- State Budgets and Audit Activity
- Current Trends in State Tax Policy
- Amazon Tax
- Affiliate and Attributional Nexus
- Computer Software Transactions
The Audit Starts Today
- Review and Document Business Activity
- Review, Document and Test Sales Tax Policies and Procedures
- Review and Test Adequacy of Record Retention
- Review Past Audit Results
Sampling in the Audit Context
- Judgmental Sampling vs. Valid Statistical Sampling
- Understanding the Population
- Preparing the Sample
- Developing a Sampling Plan
- Missing Items and Credits
Error Projection Methodologies
- The Importance of Getting the Sample Error Ratio Right
- Population Characteristics to Consider
Troublesome Transactions
- Software and Maintenance Contracts
- Service Transactions
- Bundled Transactions
- Information Services
- Interstate Commerce
- Electronic Transactions
- Intercompany Transactions
- Mergers and Acquisitions
- P-Cards
Procedural Issues
- Fieldwork
- Assessment
- Appeals
