When conducting sales tax audits, the Texas Comptroller’s Office has the ability to use sampling rather than conducting a comprehensive review of an audit target’s sales tax payment history. While this might initially seem like a good thing—as it helps streamline the audit process—the reality is that sampling can present […]
Category: State and Local Taxes
Successfully defending against a Texas sales tax audit can be a substantial undertaking. The time, effort, and resources involved can become even more substantial if the Texas Comptroller’s Office expands the scope of the audit after it starts. This is a very real possibility, and it can happen for multiple […]
Auditors have broad authority to request access to businesses’ financial records during Texas sales tax audits. But does this extend to a business’s entire general ledger? After all, a general ledger is an extensive document that contains enormous amounts of sensitive information—including information that is in no way related to […]
Facing a Texas sales tax audit is a high-risk scenario that requires informed decision-making and a strategic defense. Making informed decisions and building a defense strategy starts with understanding what auditors are looking for. So, what are Texas sales tax auditors really looking for during the audit process? Technically, the […]
When facing sales tax audits in Texas, businesses have a legal obligation to preserve all records that are potentially relevant to the inquiry. Businesses can face liability for underpayments for all years covered by the audit, and avoiding unnecessary liability requires clear documentation of compliance. This raises a critical question: […]
If your business is facing a Texas sales tax audit, avoiding unnecessary liability will require an informed, strategic, and proactive defense. The Texas Comptroller’s Office aggressively targets sales tax underpayments, and, when in doubt, the state’s auditors err on the side of assuming noncompliance. Building an informed, strategic, and proactive […]
Taking advantage of the many tax exemptions available to you can be a good idea. These can reduce or even eliminate your tax obligations. One common exemption involves property taxes, and an exemption can mean you do not have to pay a portion of your property tax bill. Unfortunately, knowing […]
It seems like being tax-exempt would mean that an organization doesn’t need to worry about taxes at all. They are, after all, exempt from taxes. However, nonprofits and tax-exempt organizations still need to address tax-related issues all the time. In fact, even though tax-exempt organizations are free from the burden […]
During the pandemic, people have had to adapt in ways that they never anticipated. For some, that has meant working from home instead of commuting to their office. It has also meant that individuals in Texas may be facing more complicated tax issues than they have in the past, particularly […]
The internet – and the burgeoning digital marketplace it has created – has broadened horizons and opened doors that wouldn’t have been imagined just a generation ago. With just a few clicks of a mouse, you can do business with companies across town or across the globe. This brave new […]