Colorado Sales Tax Audit Assistance & Advocacy
Facing a sales tax audit? You don't have to go it alone. Sales Tax Colorado provides professional sales tax audit advocacy services to negotiate with taxing authorities, defend your rights, and minimize potential liabilities.
Expert Representation for Your Audit
Dealing with a Sales Tax audit can be intimidating and full of costly pitfalls. However, with proper representation, you can walk away from an audit with a favorable outcome. We represent you before the state tax department, reviewing your records to find exemptions, defending your rights, and fighting to minimize potential liability.
Our team of professional sales tax consultants can also assist you with preparing letter rulings requests and protesting rulings. We will seek to minimize the resulting audit assessment and to bring timely closure to the matter.
Our Audit Services
Correspondence Review
Understand the Ask
We review all correspondence from the department to clearly understand the scope, requirements, and deadlines of the audit.
Direct Representation
We Speak for You
We meet and communicate with department representatives on your behalf, ensuring your position is advocated professionally.
Documentation Strategy
Organized Sales Tax Audit Defense
We assist in pulling required documentation and reviewing information requests to narrow them down to what is absolutely essential.
Methodology Review
Check the Math
We review the auditor's methodology and documentation to understand how they arrived at the assessment and challenge errors.
Strategic Advocacy
Reduce Liability
We strategize to identify additional positions for reducing the assessment amount and prepare the best approach for presentation.
Protests & Appeals
Dispute Resolution
If you disagree with findings, we prepare necessary correspondence, including Letters of Protest and Abatement of Penalty requests.
Preparing For An Audit
Auditors often request more than they actually need. Giving too much information can uncover liabilities that might otherwise go undetected, while too little can cause suspicion. We review the auditor’s information request and help you narrow it down to what is essential. Proper pre-audit planning with a specialist helps identify exposure areas and defenses before the audit begins, ensuring the process moves smoothly.
During The Sales Tax Audit
Auditors focus on assessing tax, often missing off-setting refunds or valid exemptions. They may assess tax on exempt transactions simply because a certificate is missing. We actively manage the flow of information during the audit to prevent items from being assessed in the first place. An acute knowledge of Sales & Use Tax laws allows us to convert potential assessments into reductions or even net refunds.
Sampling Methodologies
Audits often involve statistical or block sampling for sales and use tax compliance, especially when records are voluminous. Block sampling can produce skewed results that may or may not work in your favor. Statistical sampling is more accurate but requires specific data formats. We ensure you understand your rights regarding sampling and help present reasonable methodologies to the auditor that can significantly shape the audit's direction and outcome.
When The Audit Is Finished
When field work is done, you will receive audit work papers outlining errors. This is your chance to resolve questions. If you disagree with the final assessment, there are multiple avenues for resolution, from administrative meetings to court proceedings. We understand the benefits and risks of each dispute resolution alternative and guide you toward the option that makes the most sense for your business.
Minimize Your Audit Risk Today
Don't wait until the assessment is final. Contact Sales Tax Colorado for a no-obligation consultation about your Sales & Use Tax audit issues.