Tax Audit Management
Venture Tax Group provides comprehensive audit management for businesses navigating multi-state tax landscapes. We specialize in resolving Sales and Use Tax audits by defending complex taxability and nexus positions. Additionally, we provide expert representation for state Income Tax and non-resident withholding tax audits.
State Tax Audit Management
A
Sales and Use Tax
B
Income Tax and Non-resident Withholding Tax
C
Gross Receipt Tax
Tax Audit Phases
While procedures vary by state, most sales and use tax audits follow a recognizable path. Knowing what each phase demands allows a business to respond strategically rather than reactively. The process spans from the initial notification and document requests through technical fieldwork and preliminary adjustments. It concludes with rigorous negotiations over findings or formal appeals if assessments remain disputed. Success requires understanding strict deadlines and managing the transition between providing records and defending tax positions to ensure the most favorable outcome possible.
01
Notification and Engagement
The audit opens with a formal notice identifying the tax type, the periods under review and the assigned auditor. This is the moment to confirm the scope, key calendar deadlines, and discuss timing of the audit.
02
Information Request and Records Production
The auditor issues an Information Document Request covering returns, general ledgers, sales and purchase journals, exemption and resale certificates, and fixed asset schedules.
03
Fieldwork and Testing
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The auditor examines transactions to verify that tax was correctly charged on sales and purchases. This is where the use of sampling becomes part of the process.
04
Preliminary Findings
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The auditor presents proposed adjustments, usually split between underreported sales tax and unaccrued use tax on purchases.
05
Response, Negotiation and Closing
The Business or its tax advisor may contest findings, produce additional support, and negotiate the treatment of disputed items and the sampling methodology. The audit concludes with a final assessment or no-change letter.
06
Appeal
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If the business disagrees with the final assessment, it can pursue administrative appeals, informal conferences, or litigation. Deadlines here are strict and unforgiving.
What Does a Tax Audit Management Cost?
We charge by the hour for tax audit management as the time spent is entirely dependent upon the requests, the Company's responses and the tax issues that arise.