Any company whose audit results in a deficiency has the right to an appeal – also known as a redetermination of tax assessment. An audit appeal represents a smart course of action, even in those situations when businesses believe their final audit results were final. It is not uncommon for entities to overpay tax. Further, businesses may be unknowingly purchasing goods whose tax was previously paid by suppliers, causing additional overpayments.
A redetermination uncovers such errors and delivers clients potential tax reductions. Historically, HRSS professionals have obtained substantial reductions in our clients’ tax liability, including a waiver of any penalties and interest, when we assisted them with their redetermination process.