The Texas State Tax Audit Process

The Texas Comptroller of Public Accounts is tasked with ensuring that businesses across the state are collecting, reporting and paying proper state taxes. The agency aggressively pursues underpayments of taxes through the audit process, which can be burdensome, intrusive, and time-consuming. This 12-step audit protocol can be burdensome and takes significant time to resolve.

If you receive a Texas state tax audit notice, you probably have questions. You need timely answers. Protect your company by turning to a tested law firm with the ability to provide results in high-stakes cases.

The Brown, PC Difference

Brown, PC is a boutique law firm that handles tax disputes for business taxpayers in the Dallas-Fort Worth Metroplex and across the state. Our attorneys have been involved in some of the most complex cases pursued by the state comptroller or federal government. We bring this background as well as our knowledge of state tax law to resolve audits in a timely manner.

You can count on being able to reach our attorneys when you have a question. We focus on communication as a pillar of excellent client service.

An Overview Of The 12-Part Process

Your first indication that you have been selected for a state tax audit will be a notice (Form 00-750 Audit Questionnaire) in the mail. If you do not return the questionnaire, a second will issue and you may then receive a call directly from the auditor. The auditor will schedule an entrance conference after receipt of this initial form.

Before the audit, the auditor reviews your reporting history, previous audits and develops objectives for the audit plan. As soon as the initial conversation, the auditor will be considering the scope of a document request. Obtaining counsel to handle this communication with the auditor can smooth the rest of the steps.

What happens next? Here is a summary or the potentially numerous conferences after the entrance conference:

  • Examination of records — This often happens on premises and it is usually advisable to have an attorney present.
  • Exit conference — You are informed of tax assessments and any penalties and can at this point request a reconciliation conference or Independent Audit Review (IUR).
  • Reconciliation conference or an IUR — Either an audit manager or a third party meets with you and the auditor to resolve disputes.
  • Finalization and review — The auditor finalizes audit schedules and the auditor's supervisor reviews before mailing the results to you.

From this point, you still have several options to appeal. Based on the unique facts of your case, we can explain whether to seek a redetermination or audit hearing.

Seek Assistance On The Front End

Get knowledgeable legal counsel to avoid initial mistakes that could prove costly. Schedule a consultation with an experienced tax lawyer by calling Brown, PC at 888-870-0025 or send us an email.

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