In 1999, the Texas Legislature enacted a bill authorizing certain taxpayers to perform managed audits under the supervision of the Comptroller. The managed audit option is only available for Sales and Use Tax audits. The initial step in a managed audit is the taxpayer’s request for a managed audit within 30 days of the date that the Audit Notification Letter was sent. If fieldwork has already begun or if the previous audit took less than 120 hours for the auditor to complete; the managed audit request will be denied. In addition, only two sequential managed audits are allowed.
There are several factors that are considered in approving a taxpayer for a managed audit including:
When you manage your own audit, penalty and interest are waived.
In exchange for managing your own audit, the State waives all penalties and interest on your audit except those related to tax collected, not remitted. In almost all cases, the waiver of the penalty and interest far outweighs the fee you would pay our firm to conduct the managed audit.
You (or Brown Goertz & Co.) can manage the timelines of the audit.
When a State Auditor audits you, you are at the mercy of their schedule. They can have up to 30 audits that they are working on and they may disappear for months. This can be frustrating as it disrupts your business and causes undue stress. We work with you and the auditor to set forth a very definitive timeline and we manage that timeline.
Brown Goertz & Co has conducted many Managed Audits in our twenty-plus year history.
We are experts in Texas Sales and Use Tax. We are “on your side”. When you are audited by a State Auditor, they are looking for money that you owe the State. They approach all business transactions with the mindset that they are taxable.
We are creative and open-minded. We don't take a "black and white" approach to the audit. Before we decide that something is taxable, we explore several different avenues for potential exemption or tax reduction.
We are easy to get along with. Sometimes auditors aren’t very easy to get along with. They can be argumentative, dismissive and unhelpful in the process. Their very presence in your business can create stress.
We are on your side. We collaborate with you to get you through the audit as quickly and stress-free as possible. When the audit is over, it will be correct. You will have a good understanding of changes needed in your business to assure future compliance and there will be no need for ongoing appeals.
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