{"id":5832,"date":"2017-05-03T07:32:19","date_gmt":"2017-05-03T14:32:19","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=5832"},"modified":"2020-11-06T14:51:26","modified_gmt":"2020-11-06T22:51:26","slug":"sales-tax-audit-red-flags","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2017\/05\/sales-tax-audit-red-flags","title":{"rendered":"Risky Business: Manufacturing is One of Five Industries that Raise Audit Red Flags"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”5819″ img_size=”full”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]States target certain businesses for sales tax audits according to data <\/span><\/i><\/p>\n

\"Avalara:<\/a>For most companies, the mere idea of a sales tax audit is a daunting prospect. Often \u201cfingers crossed we don\u2019t get picked\u201d is a popular strategy, but for certain types of businesses, just doing what you do can be enough to attract the attention of the state auditor. According to state departments of revenue data, certain industries are at a higher risk of being audited simply based on how sales and use tax regulations impact their business. The more complex the rules, the higher the odds that errors or oversights will happen. These mistakes can be costly \u2014 both for states that are missing out on tax revenues and the companies that fall short on compliance.
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The Sales Tax Audit Process Uncovered<\/h2>\n

Unless you\u2019ve been through an audit before, you likely have no idea what to expect, never mind why the state is looking at you or why your business has been selected for an audit. Sometimes companies are chosen at random, but more often something you are doing \u2014 or not doing \u2014 in your business has raised the red flag for state auditors.<\/span><\/p>\n

Sales and Use Tax Audits Uncovered<\/span><\/i>, a new report by Avalara and Peisner Johnson & Company, aims to set the record straight on why some businesses get audited more than others and the behaviors driving these trends. Analysis compiled from real audit data from two of the “big four” states, Texas and California, and findings from more than 64,000 audits conducted over a 27-year period went into the writing of the report. Some interesting patterns emerged from this data on the types of companies that tend to get audited, the reasons why they get audited and what activities make them more vulnerable to an audit. <\/span><\/p>\n

For example: <\/span><\/p>\n