FACTORS TO CONSIDER TO GET APPROVED BY THE TEXAS STATE COMPTROLLER
There are several factors that are considered in approving a taxpayer for a managed audit including:
- The taxpayer’s qualifications for performing the managed audit. For example, a sole proprietor or the tax return preparer for a company may not perform a managed audit. The state would consider this akin to the fox guarding the hen house. Along this same vein, the person performing the managed audit should have extensive knowledge of the sales and use tax laws in Texas.
- The taxpayer’s history of compliance. You must have filed and paid your taxes on time and you must be current on all taxes to the Texas Comptroller (e.g. Franchise tax, etc.)
- Amount of time and resources available to dedicate to the audit. Working on a Texas sales and use tax managed audit requires that a person have ample time to devote to the audit. They must be able to adhere to the strict timeline set.
- Availability of taxpayer records. If you are missing any records due to disaster, record retention policies, etc. you will not be approved for a managed audit.
- Taxpayer’s ability to pay the assessment. If the company is in bankruptcy, the managed audit request will be denied.
- Audit history. Managed audits are never approved for a first-time audit.
- Permit status. The taxpayer must have been permitted for sales and use tax for the period being audited.
Reasons To Choose A Managed Audit
Reasons To Choose A Managed Audit
Reasons To Choose A Managed Audit
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 Texas Comptroller auditor conducts a Texas sales and use tax audit, 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 Can Help You
Reasons To Choose A Managed Audit
Reasons To Choose A Managed Audit
Brown Goertz & Co has conducted many Texas Sales and Use Tax 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 who work for the Texas Comptroller 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.