|
| |
 |
 |
| |
Wed, January 7 2009 |
| Home » Case Studies |
|
|
|
|
Sales Tax Audit - Case Studies
More and more companies are coming to Kruse & Associates for their Sales Tax Audit needs. |
| |
|
High Tech Manufacturer
The taxpayer is a retailer of component parts and assemblies on a global basis. The sales tax audit liability centered around the lack of documentation supporting exempt international sales and sales for resale. Our sales tax audit experts were successful in convincing the auditor that the transactions did in fact qualify as exempt even though the standard forms of documentation (export forms and resale certificates) were not available. The audit liability was reduced from $97,678 to $24,372.
Vaudeville Theatre
The taxpayer operated a vaudeville theatre with volunteer help but sold beer, wine, soda, and catered meals in conjunction with the show tickets. Her bookkeeper had made some errors in reporting, initiating a sales tax audit. The initial assessment was approximately $29,000. After several hearings and an appearance before the California State Board of Equalization, the entire assessment was abated.
Custom Pool Cover Contractor
The taxpayer was reporting use tax liability to the CA State Board of Equalization based on cost estimates of in-state materials purchased without sales tax. The Sales Tax auditor disallowed that method and used the Board's "contractor's formula" method for audit purposes. This resulted in a substantial use tax liability (excess of $300,000). The taxpayer hired his attorney to fight the audit but was unsuccessful. Our firm stepped in and the re-audit result was less than $45,000.
Wholesaler of Roofing Materials
The taxpayer had just been audited by the California State Board of Equalization and was facing a proposed sales tax liability approaching $100,000. We reviewed the auditor's workpapers which disclosed errors in the auditor's test sampling which, when corrected, reduced the tax liability by over $60,000.
| | |
|
|
California Sales Tax Audit |
|
| |
