video-blog

How Do You Fight Back With Statistics in a Sales Tax Audit?

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So statistics, just to give you a brief lesson, are about the integrity of the data that you have. So what you’re doing with statistics is you’re taking a representative population or an entire data set, let’s call it a business’s sales over a three-year period, and then you’re taking a representative sample, you’re trying to create a fair and accurate sample of that population. So if we were to look at the business of sales over a three-year period, the goal would be how do we take a smaller subset of that that we feel is going to be fair and accurate? So here’s where CDTFA audits often get into it as we have what we call a data file. So CDTFA and your sales tax auditors have very limited resources. When they do an observation test, when they do a mark of test and when they’re using the indirect methods of testing, they’re only going to do it for a certain period of time usually two to three days max. And so obviously the challenge is if you’re going to take a three day sample or a two day sample, how can that possibly be representative of over a thousand days over the course of a three-year period. Three days, a thousand days, it’s not very representative because you can have a variety of things that would go into those three days that could heavily tip the scales in one way or the other. Hopefully in the favor of your taxpayer anyway.

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What Are Some Major Technical Issues That You See in Sales Tax Audits?

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So aside from discrepancies between the client’s reported taxable sales and the taxes due, with CDTFA’s calculation the the biggest problems that we see are in little technical areas. So the first one is sales for resale in California. When you sell a product for resale and obtain a valid resale certificate, that product is not taxable to you so the important thing here is number one, the product is being sold for resale. So it’s moving down the supply chain because from the state’s perspective, the state doesn’t want to tax it in the middle of the supply chain, it wants to tax it at the end of the supply chain. So if you’re manufacturing baseball bats and somebody is buying them to resell them to consumers, the state wants to tax it when it’s sold to the consumer at a higher market price versus when it’s sold to the retailer. So with sales for resale, the actual resale itself is an exempt sale but it’s only made exempt by the attainment of a resale certificate. For that particular transaction, the problem that we see with clients and one of the biggest discrepancies

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What Do I Do If I Have Not Filed Taxes for Multiple Years?

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So the first thing to do when you haven’t filed taxes is you need to get your taxes filed. If you can arrive at how much you owe the government, you can begin fixing the problem. So the first thing you need to do is establish your filing compliance: how many years haven’t you filed, what information do you need to get it filed and then get your returns filed. So in some cases we’ve had situations honestly where clients don’t remember what years they have and have not filed for, so the appropriate solution in those cases is to call the IRS and to do what we refer to as an analysis. An analysis is a comprehensive review of your account to determine what returns you filed, what returns you haven’t filed, what returns the government has filed for you and any other pieces of information that you would need in order to get in to compliance. Like what information does

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How Do I Beat IRS Examinations at Its Own Game?

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How Do I Beat IRS Examinations at Its Own Game? So here are some of the tactics that we used when dealing with IRS examinations in order to get the best results for our clients and I’m not necessarily recommending as a layperson that you try and effectuate these strategies by yourself I’m simply letting you know because I want you to see the playing field in terms of how IRS audits actually work and some of the tactical maneuvers that we use to get the best results for our clients again with an IRS audits particularly a field audit you want to make sure that you’re handling the situation with an appropriate amount of deference and usually with field audits you want to get an attorney involved as quickly as possible however here’s the way that we handle the situation number one when dealing with an examination issue we’re trying to be at least a step ahead of the auditor so we’re creating a very defined path and we’re trying to lead the auditor down the path that we want to detect so what this takes is it takes two things number one you need a clear indication on where you’re starting at a point that on so number one what are the facts what documents do I have available to me how are my documents going to line up in accordance with the auditors expectations why is the client being audited what information can I gather about my current situation based on the information I have about my current situation what are the likely outcomes when I get to the end am I gonna pay a tax I know how much tax.

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How Do You Beat IRS Collections at Its Own Game?

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Okay so with IRS collections, here’s the thing to keep in mind. IRS collections is really about what’s the best end result for the client. How much can the client afford to pay? How much does the client want to pay? And what is the IRS going to come back with based on those inputs. So the easy thing about collections is you know exactly the direction it’s going to go. With collections for example, you know how they’re going to do financial analysis, you know the way that they’re going to look at certain items of income, you know the way they’re going to look at certain business expenses, so it’s very easy to understand. It’s very easy to take your client’s circumstances or take your own circumstances and to go through and audit your financials and line them up on a financial statement and say this is what the auditor’s going to look at. So anybody can really fill out a financial statement. There are some traps on that financial statement, there’s probably some information you don’t want to give out but at least you’ve got a baseline for where your financials are and where they might need to be in order to hit your desired results. The best thing that you have in the course of an IRS collections case is time, especially for the ability to control some of the inputs on your bank statements. So for example when we’re negotiating an IRS collection resolution and we have a period of time that passes, we will instruct

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Why Are Multi State Tax Issues a Problem for Companies?

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So imagine that you’re a company and you’re based in Texas and you go to work every day in Texas. Your employees are in Texas, sure you sell products outside of Texas but a lot of companies sell products outside of Texas, and over time as your business grows and scales you begin to have more and more contacts with other states. Maybe you have clients in Oklahoma or California or Florida. Maybe you sell something that requires installation and so you have to send either employees or independent contractors to various states to help install products. Maybe you offer complimentary services. You sell software, you need somebody to help train your clients or to teach them things. Maybe you send salespeople to two different locations. Maybe you have an employee and she’s been with you for ten years and she gets a job offer and she wants to move to San Diego. The problem that we see with a lot of businesses in this digital age and in the age of routine domestic airline flights and the ease of travel is companies start to develop more and more of an interstate web and for a company that’s been based in Texas, that has ownership that’s been based in Texas their entire lives,

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