In a business climate characterized by states’ heightened efforts to realize additional revenues, entities increasingly find themselves facing sales and use tax audits – the outcome of which, often results in a deficiency assessment. The compliance review, which detects potential issues and offers the opportunity to correct any material misstatements before an audit, has become the pre-audit tool of choice for numerous clients.
When retained for a sales tax review, the HRSS team of tax professionals focuses heightened attention on every aspect of a company’s internal processes and tax procedures, ensuring enhanced success with future audits and steering clients clear of costly assessments and penalties. Specifically, a compliance review includes:
- Review of recordkeeping and accounting methods
- Review of taxability issues related to the goods and services sold or purchased
- Review of sales tax return preparation process
- Recommend changes, if applicable, to current procedures
- Estimate of potential sales tax liability exposure as a result of an audit